Chrysler CEO Bob Nardelli has said he believes talks with Fiat are making progress as the two car manufacturers continue with efforts to complete a proposed alliance that will see Chrysler qualify for additional government loans.
The US Treasury Department has reached an agreement with Chrysler’s largest creditors to cancel US$6.9 billion of debt in exchange for US$2 billion in cash.
“If approved, it would clear a significant hurdle on our continuing journey toward long-term success, but the proposed agreement still needs to be approved by all of the secured lenders,” Mr Nardelli said.
He continued by saying that the leadership shown by the United Auto Workers union unanimously approved a tentative new labour agreement with the carmaker and has sent the deal to local union members for a ratification vote.
CarAdvice will bring you more developments on this situation as they come to hand.