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Cars Blog

Chrysler backs off announcement of Fiat alliance

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March 30, 2009 2:46 pm
By Peter C. T. Elsworth

Chrysler has backed off its own statement announcing an alliance with Fiat S.p.A., saying the potential partners have only a "framework" accord, according to Automotive News.

The disclosures came in back-to-back releases Monday after President Barack Obama gave Chrysler 30 days to come up with a plan to team with the Italian automaker and qualify for as much as $6 billion in additional U.S. aid.

The second statement was issued about 30 minutes after Chrysler said Fiat and Chrysler majority owner Cerberus Capital Management had come to terms in a deal supported by the U.S. Treasury Department. Both statements were attributed to Chrysler CEO Bob Nardelli and cited "substantial hurdles to resolve."

Chrysler is staying afloat on $4 billion in U.S. loans. Obama said the government will provide Chrysler the working capital it needs to get through the next 30 days.

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