The president of the USA Barack Obama said yesterday “he was confident “a viable Chrysler” would emerge over the coming months, however he stopped short of confirming that the company would file for bankruptcy.”
We are expecting that Chrysler will announce plans soon that it will be filing for bankruptcy protection. It is likely that current CEO Mr B Nardelli will be replaced by a member of the Fiat board which also confirms that fiat are likely to by a 20% stake in Chrysler.

This could see Chrysler’s $6.9 Billion worth of debt wiped out, 46 companies are still owed money which would be paid partly by the US Treasury

USA president Barack Obama also added
“It would be a very quick type of bankruptcy, and they could continue operating and emerge on the other side in a much stronger position,”

Chrysler