CHICAGO - CHRYSLER, which has received a US$4 billion (S$6 billion) government loan, is on track to complete a required government submission outlining its plan to become viable, the automaker's product development chief said on Wednesday.
'We are wrapping up the viability package right now, putting the final touches on it,' Frank Klegon told reporters on the sidelines of the Chicago Auto Show. 'Matter of fact, it has to be submitted actually two days ahead of that.' A Chrysler spokesman later said that the plan would definitely be filed by the Feb 17 deadline.
Chrysler, 80 per cent held by private equity firm Cerberus Capital Management, and larger rival General Motors Corp must present restructuring plans to the government next week as part of the agreement to accept loans.
'We are in the fine-tuning phase of what we have to submit, answering the questions required by Treasury and Congress,' Mr Klegon said.
'That doesn't mean all the negotiations are finished,' he said later, adding that Chrysler was still talking with bankers, labor interests and suppliers.
Chrysler has had an ongoing dialogue within Treasury and has been showing a capital plan that runs out several years, and a long-range product development plan that addresses fuel efficiency investments, he said.
The remaining items, the financials probably are the most challenging aspects of developing the viability plan, he said.
'They know where they have to get to but they are still working on how to get there,' Mr Klegon said of the negotiations with bankers and labor.
Chrysler's long-range plans have included alliances with Nissan Motor Co Ltd and most recently with Fiat that would give the Italian automaker a 35 per cent stake in the struggling US automaker.
The Fiat alliance is contingent on Chrysler receiving US$3 billion of additional government loans. Fiat would not provide any cash for the stake, but would provide Chrysler with access to small car platforms among other items. -- REUTERS
'We are wrapping up the viability package right now, putting the final touches on it,' Frank Klegon told reporters on the sidelines of the Chicago Auto Show. 'Matter of fact, it has to be submitted actually two days ahead of that.' A Chrysler spokesman later said that the plan would definitely be filed by the Feb 17 deadline.
Chrysler, 80 per cent held by private equity firm Cerberus Capital Management, and larger rival General Motors Corp must present restructuring plans to the government next week as part of the agreement to accept loans.
'We are in the fine-tuning phase of what we have to submit, answering the questions required by Treasury and Congress,' Mr Klegon said.
'That doesn't mean all the negotiations are finished,' he said later, adding that Chrysler was still talking with bankers, labor interests and suppliers.
Chrysler has had an ongoing dialogue within Treasury and has been showing a capital plan that runs out several years, and a long-range product development plan that addresses fuel efficiency investments, he said.
The remaining items, the financials probably are the most challenging aspects of developing the viability plan, he said.
'They know where they have to get to but they are still working on how to get there,' Mr Klegon said of the negotiations with bankers and labor.
Chrysler's long-range plans have included alliances with Nissan Motor Co Ltd and most recently with Fiat that would give the Italian automaker a 35 per cent stake in the struggling US automaker.
The Fiat alliance is contingent on Chrysler receiving US$3 billion of additional government loans. Fiat would not provide any cash for the stake, but would provide Chrysler with access to small car platforms among other items. -- REUTERS
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