Fiat and US automaker Chrysler will seal a partnership deal by Thursday evening, in time for the May 1 deadline set by the American government, Fiat Deputy Chairman John Elkann said on Tuesday.
''We're confident a deal will be struck but we have to wait until Thursday and respect any decision which is made. It's always hard to weigh probability just ahead of a deadline, but in important negotiations a lot is accomplished at the very end,'' the grandson of Fiat' legendary chief Gianni Agnelli explained.
US President Barack Obama has given the Detroit No.3 until the end of the month to strike up a partnership with Fiat if it wants federal bail-out funds to avoid bankruptcy and possible liquidation.
Fiat its ready to offer its green technology and small-car platforms for a stake in Chrysler and virtual management control.
The partnership will give Fiat access to production plants and a sales and service network in the US which are necessary to return Alfa Romeo and introduce the new Fiat 500 city car to the American market.
Chrysler, in turn will have access to Fiat's networks in Europe and Latin America.
To set the stage for their partnership, Fiat and Chrysler have been able to convince unions to accept a 55% stake in Chrysler in exchange for pension debt owed to them.
The last hurdle now is convincing the US carmaker's chief lenders to downgrade the debt owed to them and accept a stake in the future company.
The negotiations are being orchestrated by Fiat CEO Sergio Marchionne, the man responsible for what Obama defined as Fiat's 'remarkable' turnaround.
''We are closely following developments in the negotiations through text messages with Marchionne. But we need to be patient until Thursday,'' when the deadline expires, Elkann said.
In regard to Fiat's alleged interest in buying a stake in Germany's Opel from General Motors, Elkann said ''as Marchionne made clear earlier this week: Fiat is interested in what happens in the auto industry. If opportunities exist, we're interested''.
