Sources familiar with the matter said that Fiat will move forward with a Chrysler LLC alliance even if the company is forced to enter bankruptcy. Insiders said that Fiat officials will continue to work with the U.S. Treasury Department to complete an agreement, reports Automotive News.
Chrysler has until this Thursday, April 30th, to complete a deal with Fiat and its stakeholders. If Chrysler cannot complete the deal with either party, it will be forced into bankruptcy. The Obama auto task force has said that Chrysler will get another $6 billion in federal loans if the company can secure a future with Fiat and stakeholders.
Over the weekend, the CAW ratified a deal with Chrysler that would save the struggling automaker $240 million a year. The UAW has also reached a deal with Chrysler on labor concessions subject to ratification.
“I see no reason why it cannot happen,” Fiat CEO told analysts and reports last week. “I can only confirm our unwavering commitment to get this transaction done. We see benefits to both Fiat and to Chrysler.
– By: The Daily Auto Edtior