Chrysler has less time than GM, they must reach a deal with Fiat SpA within thirty days. Fiat will be allowed to buy up to 35% of the struggling automaker. The Fiat deal would give Chrysler some small car designs with good fuel economy. Fiat would get stock for transferring the technology. If Chrysler is successful $6 billion in permanent loans would follow.
It is possible that if one or both companies do not put together a successful business plan, the auto task force will sponsor a structured bankruptcy. This would allow the companies to operate, reduce debt and restructure without fear of creditors.
This is a sad day for the auto industry! There will probably be many more people laid off due to this severe downturn. I am of the opinion that a government sponsored bankruptcy is the only way to get either of the companies turned around. GM will probably survive in a much smaller reorganization, Chrysler may not survive!