Italian automaker Fiat Group SpA is expected to sign paperwork to become a partner with Chrysler by Thursday, according to Reuters citing people briefed on the deal.
From Reuters: One of the people said Fiat initially would take a 20 percent stake in the company in exchange for its small-car and engine technology.
Initially Fiat would not invest any cash, but its technology is worth $8 billion to $10 billion….Fiat’s stake could rise to 35 percent, and the company may be willing to invest money at a later date, the person said.
Chrysler and Treasury Department officials were holding last-minute negotiations Wednesday in an effort to keep the U.S. auto maker out of bankruptcy court even as preparations for a Chapter 11 filing continued to move ahead…The talks could run up to the 11:59 pm ESt deadline on April 30th, according to an Obama administration official.
Plans are now underway for President Barack Obama to deliver a speech on Chrysler Thursday morning, though people who have been briefed on the matter said that two versions of the speech are now being drafted-one if Chrysler has to file for bankruptcy protection, and another if it manages to avoid that outcome.
Although a partnership with Italy’s Fiat is the last piece of Chrysler’s massive restructuring plan, and a major step for the co. toward avoiding liquidation ; the U.S. automaker has still to convince some of its creditors to agree in reducing their debt in order for it to avoid Chapter 11.