Chrysler Talks Break Down; Bankruptcy Expected Today

Bankruptcy still looks likely for automaker
By John Johnson,  Newser Staff
Posted Apr 29, 2009 11:14 PM CDT
The Fiat logo.   (AP Photo/Joerg Sarbach, File)
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(Newser) – Last-minute talks between the Treasury Department and Chrysler's creditors have broken down, making a bankruptcy filing nearly certain today, the Wall Street Journal reports. In other developments, the Detroit News says Italian automaker Fiat will still sign a deal today to forge an alliance with Chrysler. Under the bankruptcy plan being worked out by the government, Chrysler chief Robert Nardelli would be replaced by Fiat management, says the Washington Post

In his primetime news conference, President Obama said he is "hopeful" that Chrysler could remain a viable company, and he said any bankruptcy would be a "very quick type." If bankruptcy goes through, the new company would be owned by the UAW (55%), Fiat (35%), the US government (8%) and Canada (2%), says the Post.