New York - Italian carmaker Fiat Motor SA is expected to increase its holdings in nearly bankrupt US carmaker Chrysler LLC to 20 per cent, according to a report Tuesday in the Wall Street Journal.

Fiat and Chrysler previously announced a partnership in January. On Monday, the White House rejected additional emergency aid for Chrysler unless it can finalize a merger with Fiat within 30 days.

The arrangement was worked out in conjunction with the US Treasury Department. According to the newspaper, an earlier draft of the plan would have had Fiat taking a 35-per-cent share of Chrysler.

Germany's Daimler continues to hold 20 per cent of the company, while the majority is held by Cerberus, a private equity firm. (dpa)