Chrysler Given 30 Days to Link with Fiat

With the March 31 deadline almost here, rumors surrounding the fate of the two ailing American automakers are causing quite a stir in this particular sector. While Rick Wagoner has just announced that it will leave General Motors, it may seem like President Obama wants to give Chrysler a 30-day deadline to allow it to link with Fiat and to stick with its initial restructuring plans. In case the deal goes through, the White House may provide the requested funds, Autonews reported today quoting sources close to the matter.

As we're sure you know, Chrysler insisted it needs additional funding to get through March and cope with the economic recession, with the US official setting a March 31 deadline for a final decision. Although several officials hinted that the US may after all give more funds to the two automakers, the deal is a bit more complicated as the White House conditioned the additional funding by a series of factors.

Fiat and Chrysler announced in mid-January that they plan to form a strategic alliance that could help the American manufacturer stick to its restructuring plan and allow the Italian expand its market coverage. Moreover, Fiat would get a 35 percent stake in Chrysler and will use its dealership network to sell a number of models in the United States.

"In today's economic environment, talks are going on between companies in all industries -- ours is no different. Chrysler LLC as a matter of policy however, does not confirm or disclose the nature of its private business meetings. Beyond those partnerships and alliances already announced, Chrysler has no further announcements to make at this time,” Chrysler said in a statement published in January according to Autonews.