Chrysler CEO Promises to Invest Bailout Money in North America

Despite the fact that the automaker recently signed a strategic agreement with Fiat, the bailout money sourced from the United States Treasury will be exclusively used in North America, Chrysler CEO Bob Nardelli said. The Chrysler-Fiat alliance won't affect the American automaker's plans to invest in local operations, he added, with no cent to be used outside Chrysler. "None of the funds that we've got from the treasury will flow out of Chrysler," he said in a clip published on Chrysler's press website according to Autonews.

Nardelli said the Chrysler-Fiat partnership will help the American automaker preserve jobs and support its viability plan by giving immediate access to certain platforms provided by the Italian company. This means Chrysler has the ability to revamp its production line with smaller and more fuel-efficient models faster and without spending so much money compared to using its initial development schedule. Moreover, Chrysler will be able to expand its lineup to several other markets, increasing the global reach for Chrysler, Dodge and Jeep brands outside North America.

“The Fiat alliance enhances our viability plan, and we’re pleased with the progress of our discussions with Fiat. Meetings with all key constituents regarding concessions are collaborative and productive. These initiatives are totally aligned with our viability plan requirements, and will make Chrysler stronger and more competitive,” said Nardelli.

In addition, a company spokeswoman said the company is still waiting for a car czar to supervise the restructuring process because he would better evaluate Chrysler's turnaround proposal, the aforementioned source added. But even so, Chrysler says its reorganizing plan is already moving and expects to forward it to the government. Both General Motors and Chrysler are required to present their restructuring plans by February 17.