Chrysler gets 30 days for crisis talks

Fiat's CEO has flown to Detroit to meet Chrysler LLC's unions and creditors after the US automotive task force gave the carmakers 30 days to set up a partnership to save Chrysler.

Sergio Marchionne arrived on US shores after President Barack Obama ordered Chrysler to accelerate its efforts to survive and prepare itself for possible bankruptcy. Marchionne was accompanied by Alfredo Altavilla, Fiat's head of business development, who is leading the talks with Chrysler and the US task force.

The Italian industrial group first announced its plans for a partnership with Chrysler in January. It is to give technology for small cars and access to foreign markets in exchange for a stake in Chrysler and US entry.

"If the agreement is finalised, as we hope it will be, in the coming weeks, it will present an extraordinary occasion," said Fiat Chairman Luca Cordero di Montezemolo.

"The American market, despite the fact that it is going through a difficult moment, remains the biggest of challenges and opportunities," he said.

Obama has rejected the plan submitted by Chrysler to remain a viable concern with the help of Fiat, saying the No3 US carmaker had not done enough to justify getting billions of dollars more in government loans.

- AP