Chrysler LLC is making progress in talks with creditors and the United Auto Workers union on a restructuring plan required under a federal bailout, a senior Chrysler executive told Reuters on Friday.
The executive, who spoke on condition of anonymity, also said the company was preparing to submit a turnaround plan to the government on Tuesday, the deadline set by the Bush administration. In the plan, Chrysler will offer one option for viability as a standalone company and another that would involve a strategic partnership, he said.
Chrysler received $4 billion in taxpayer aid in December and is seeking a further $3 billion. Like its rival, General Motors Corp, it must prove to the government by March 31 that it can survive and be competitive.
We are fully engaged with major stakeholders and making progress, the executive said. The plan will highlight those discussions.
Chrysler, majority-owned by Cerberus Capital Management LP, said it has been in regular touch with White House and Treasury Department officials.
Part of our business strategy going forward is pursuing various alliances and partnerships. Even in a standalone context, we would look to work with other companies, the executive said.
Chrysler's U.S. sales fell 30 percent in 2008 and 55 percent in January. To cut costs on inventory and components, the company shut all its 30 manufacturing facilities from mid-December until January 26.