Fiat CEO says other options to Chrysler

By Gilles Castonguay and Lisa Jucca

MILAN/ZURICH (Reuters) - Fiat's (FIA.MI) chief executive said there were other options to a partnership with troubled U.S. car maker Chrysler although he still wanted seal the deal by the April 30 deadline set by Washington.

"I intend to reach a good conclusion," Sergio Marchionne told reporters at a news conference in Zurich, adding that he saw no reason for Fiat not to close by the deadline set by the U.S. government.

Washington has warned Chrysler, the smallest of Detroit's Big Three car makers, that it would go into bankruptcy if it fails to complete an agreement by April 30.

Marchionne told Canada's Globe and Mail newspaper in an interview published on Wednesday that there was only a 50-50 chance of a deal succeeding because of lack of progress in talks with union leaders.

"Absolutely we are prepared to walk. There is no doubt in my mind," Marchionne said in the interview, posted on the Globe and Mail website (business.theglobeandmail.com/).

However, the Fiat chief told the Zurich news conference: "The objective is to avoid Chapter 11. People would do it if necessary. Our preference is to find a solution with U.S. Treasury, (unions) and lenders that would allow for a smooth transition to a new Chrysler."

The deal with Chrysler was first announced in January but has been modified as Chrysler continued its talks with the U.S. government aimed at securing fresh funds.

In the latest version of the deal, Fiat would take an initial 20 percent stake in Chrysler in exchange for the technology to make small cars and access to foreign markets.