Chrysler preparing two plans to submit to Treasury on Feb. 17

The clock is ticking and GM and Chrysler are getting close to their Feb. 17 deadline to submit a viability plan to show the U.S. Department of Treasury that they can repay their loans and generate positive cash flow.

Chrysler LLC’s product development chief Frank Klegon told reports at the 2009 Chicago Auto Show that the automaker is preparing two plans to show the U.S. government: one as Chrysler LLC by itself and the other if it joins forces with Fiat SpA.

For now, Chrysler is toughing through the hard economic times with $4 billion in government loan. CEO Bob Nardelli has previously said that the company needs the additional $3 billion to survive.

In an agreement reached early January, Fiat and Chrysler announced a partnership where Fiat will take a 35 percent stake in the American automaker. Fiat in return will give Chrysler access to its fuel-efficient cars and technology.

Source: MSNBC