Fiat Says Love for Chrysler Never Dies. Even with Chapter 11...

Even if recent media reports are hinting that Chapter 11 is imminent for Chrysler, Fiat is apparently still aiming to complete the strategic alliance it announced in mid-January, an insider told Autonews. Furthermore, Sergio Marchionne, CEO of the of the Italian automaker, confirmed he intends to continue negotiations even if Chrysler prepares for bankruptcy and reaffirmed that Fiat is looking to get the American automaker as a whole and not on parts.

"I like Chrysler in its totality," he was quoted as saying by the aforementioned source. "I see no reason why it cannot happen," Marchionne added, explaining that Chapter 11 would not be an impediment to complete the partnership. "I can only confirm our unwavering commitment to get this transaction done. We see benefits to both Fiat and to Chrysler."

Marchionne also confirmed that Fiat's board requested him to finalize the negotiations so, taking into account the agreement Chrysler has just reached with the CAW plus the $500 million loan approved by the Treasure, a decision is likely to arrive in the next weeks.

A separate rumor surrounding negotiations between the two companies pointed that the alliance is 90 percent done and the final steps are expected to be completed this week. However, Fiat quickly came out with a statement, denying the rumor and explaining that negotiations are still underway and that it's impossible to predict the time to finalize the partnership.

"No agreement has been concluded between Chrysler and trade unions in the U.S. and Canada and the assertion that the overall agreement has been 90% defined is untrue. The talks remain completely open and it is not currently possible to predict the timing or the outcome," the Italian automaker said.