Chrysler chief is 'hopeful' about Fiat deal
NEW YORK -- A deal with Italy's Fiat that could save the third-largest U.S. automaker is not a sure thing, Chrysler President Jim Press said Wednesday.
"We're hopeful," is how Press described the prospects for a Chrysler/Fiat partnership in an interview during the press preview for the New York International Auto Show. "There are no showstoppers, but at the same time, there are a lot of moving parts."
Underscoring how key the deal has become, Press rode onto the stage at a press conference here in a bright blue Fiat 500 subcompact. And he greeted journalists with a hearty "ciao."
Press says that if the proposed Fiat deal falls through or the government refuses further assistance, avoiding a bankruptcy filing would be difficult. "We can't rule it out, even though it is not preferred."
Press warned that if Chrysler were to disappear it "could trigger a depression" because of its job losses and the ripple effect of up to a million jobs at suppliers and other businesses.
The Obama administration last week gave Chrysler 30 days to complete its deal — which would give Fiat a stake in exchange for technology and a portfolio of small cars to sell. Chrysler also was told to cut debt, gain labor concessions, resolve issues with its former credit unit and show it can make money.
If GM and Chrysler meet the government's deadlines, they will be eligible for additional loans beyond the $17.4 billion total they have already received.
Press said the $6 billion that Chrysler could receive, on top of the $4 billion it got in December, would be enough to see it back to profitability over the next several years.
Press said he is focusing on just trying to keep Chrysler running, rather than the government deadline. "My biggest concern is to keep focusing on business as usual and not let this become a distraction."
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