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Fiat ready to sign deal with Chrysler

Turin -- Fiat SpA Deputy Chairman John Elkann said the Italian automaker was ready to sign a partnership deal with Chrysler LLC, ahead of a federal deadline.

''We're confident a deal will be struck but we have to wait until Thursday and respect any decision which is made," Elkann said.

The U.S. Treasury Department gave Chrysler until May 1 to cut costs, reduce debt and fashion a partnership with Fiat to keep a federal line of credit going. Chrysler has requested an additional $6 billion.

The partnership with Fiat would give the Italian automaker access to U.S. factories and the U.S. market, ANSA reported Tuesday.

Chrysler, in return, would have access to Fiat's inroads in Europe and Latin America.

A deal with the United Auto Workers that goes to a union vote would reduce the company's healthcare obligations for retired workers, which now stands at $10 billion. If the deal is ratified, the UAW would own 55 percent of the company.

A deal with creditors is also in the works.

''We are closely following developments in the negotiations through text messages with (Chief Executive Officer Sergio) Marchionne. But we need to be patient until Thursday,'' when the deadline expires, Elkann said.

Copyright 2009 by United Press International.

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