Chrysler has contracted a law firm to help it prepare for bankruptcy, the Wall Street Journal reports. The hiring of Jones Day suggests the automaker faces immediate failure if Congress decides to deny financial assistance to Detroit automakers. Jones Day has experience in automotive matters and has represented the United Auto Workers in many cases.
Chrysler has sought mergers to boost its finances, and had approached General Motors before that firm developed dire cash problems of its own. Chrysler’s CEO, Robert Nardelli, has said he would accept a forced merger with GM as a condition for receiving federal bailout funds.