UPDATE 1-U.S. court seen clearing Chrysler sale to Fiat

* Sale hearing to continue Thursday

* Judge expected to overrule more than 340 objections

* Sale frees company of $6.9 bln loans, retiree benefits

* Judge credited for swiftly hearing arguments (Adds testimony and other detail from Wednesday hearing)

By Tom Hals

NEW YORK, May 27 (Reuters) - Chrysler looks set to clear its last major hurdle in its sprint through bankruptcy court as soon as Thursday, when a judge is expected to overrule more than 340 objections and approve its sale to a group that includes Fiat.

Less than 30 days after it filed for bankruptcy, the automaker seeks approval to sell its stronger operations to a "New Chrysler" owned by Italy's Fiat (FIA.MI), labor and the U.S. and Canadian governments, in exchange for $2 billion paid to its lenders.

The first eight hours of hearings on Wednesday centered on cross-examining Chrysler's former president and vice chairman, Tom Lasorda, and Robert Manzo of Capstone Advisory Group, which provided Chrysler with financial analysis.

Those opposing the sale include the nearly 800 dealers Chrysler wants to shutter, as well as debtholders and retirees. Suppliers, which are owed more than $5 billion, have also objected.