Fiat: Chrysler deal to be decided on Thursday

Fiat’s Vice Chairman John Elkann told Reuters that a deal on the potential partnership with Chrysler will be decided on Thursday evening.

“The Chrysler deal will be decided on Thursday evening our time, end of day in the United States. Up till the end, we won’t have much detail,” he said. “Today the negotiations are in the hands of the (U.S. government) taskforce … They are carrying out the negotiations.”

Elkann said that if Chrysler were to file for bankruptcy, Fiat “will need to see what the possibilities will be. We will need to be patient until Thursday.”

It was reported earlier this morning that the U.S. Treasury has struck a deal with Chrysler’s lenders who have agreed to write down the company’s debt to $2 billion. Lenders hold close to $7 billion in Chrysler debt.

– By: Omar Rana

Source: Reuters