United States President Barack Obama is set to make a statement on the US car industry, the White House said Thursday.
The statement is expected to announce a deal between Fiat and Chrysler to create the world's fifth-largest carmaker.
Obama will make his statement at noon Thursday in Washington (18:00 Italian time, 16:00 GMT), the White House said.
Fiat sources said earlier that the deal between the Turin-based company and America's No.3 carmaker will then be signed.
A deadline for a fresh injection of federal funds for Chrysler expires Thursday midnight, US time.
Chrysler will go into bankruptcy protection for a couple of months to ease the deal's financial side, after talks with a small group of debtholders broke down, reports say.
The financial arrangements to settle Chrysler's huge debt have been agreed on the back of a previous cost-cutting accord with unions.
As well as the wage cuts, unions agreed to accept a majority stake in Chrysler in exchange for debt owed to them and their pension fund.
A possible future scenario for Chrysler sees unions with 55% and Fiat with 35%, while banks and the government will hold the last 10%.
According to the Toronto Star, however, the Canadian government will get a 2% stake.
Fiat will offer its green technology and small-car platforms, valued at up to $10 billion, for its stake in Chrysler and virtual management control of the joint company.
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.
