Chrysler and Fiat Team Up

Chrysler says it has Fiat deal framework

Ailing automaker Chrysler LLC said Monday it has agreed on the framework for a global alliance with Fiat SpA, but that there were still hurdles to a definitive pact with the Italian automaker.

The news came not long after President Barack Obama refused further long-term federal bailouts for General Motors Corp. and Chrysler LLC, saying more concessions were needed from unions, creditors and others before they could be approved. He raised the possibility of controlled bankruptcy for one or both of the beleaguered auto giants.

He said Chrysler’s situation is more perilous than GM's, and the government would give the company 30 days to overcome hurdles to a merger with Fiat SpA. If they are successful “we will consider lending up to $6 billion to help their plan succeed,” Obama said.