Chrysler working around the clock on Fiat deal

By Poornima Gupta

NEW YORK (Reuters) - Chrysler is working around the clock to complete a deal with Italy's Fiat SpA and is confident a partnership can be reached by the end of the month, Vice Chairman Jim Press said on Wednesday.

Press, speaking on the sidelines of the New York Auto Show, said Chrysler was working hard to avoid bankruptcy and has been in a constructive and continuing dialogue with all of its stakeholders.

"We are working around the clock, 24 hours a day, seven days a week to meet the request and the time tables put forth by the president's automotive task force," Press said.

Chrysler, about 80 percent-controlled by Cerberus Capital Management, was given until the end of April by the task force to complete an alliance with Fiat that would give it access to small car technology it now lacks.

Chrysler has been operating under $4 billion of U.S. government emergency loans and has sought additional loans. The autos task force said it would consider investing up to $6 billion more if Chrysler completed the tie-up with Fiat, but warned that bankruptcy might be an option.

Chrysler is proceeding on the Fiat alliance as though there would be no bankruptcy, Press said.

"All the constituents involved have the same objective: to avoid bankruptcy and keep the company solvent," he said. "Those conversations have been productive. They are ongoing and I am hoping that by the April 30 deadline we would have been able to achieve the goals."

Fiat is also involved in the discussion with key stakeholders, Press added.

(Reporting by Poornima Gupta; Editing by Lisa Von Ahn and John Wallace)