United States President Barack Obama on Monday made it clear that any aid to American automaker Chrysler would depend on it striking a partnership with Italy's Fiat.
In outlining his government's position on helping the crippled auto industry, Obama said ''Chrysler needs a partner'' to survive and ''if they are able to reach a solid agreement which protects American consumers, we will consider lending them $6 billion''.
''If no such accord is reached and if no other viable partnership surfaces, we will not be able to justify the investment of further taxpayer money to keep Chrysler operating,'' the American president said.
Fiat, Obama recalled, ''is ready to transfer its cutting-edge technology to Chrysler and, after having worked closely with my team, has promised to build new, fuel-efficient cars and motors here in America''.
Fiat has linked any hypothesis of an accord with Chrysler to it obtaining a loan from Washington.
Looking at the US auto industry in general, Obama said we cannot, we must not and will not allow our automobile industry to just vanish. This sector, like no other, is an emblem of the American spirit''.
The automobile industry, he added, ''is a pillar of our economy. But we cannot go on like this''.
Chrysler was given 30 days to finalise an accord with Fiat, after which it will face bankruptcy.
General Motors, the biggest US automaker, was given an additional 60 days to revamp its restructurization plan which, like Chrysler's, was found to be insufficient by the Obama administration.
Funds were guaranteed to both automakers to stay afloat during the extended deadline period.
Fiat in January signed a preliminary non-binding agreement with the struggling American carmaker to create a global partnership in the production and distribution of automobiles and other motor vehicles.
The non-cash accord calls for Fiat to take a 35% stake in the Number Three American carmaker in exchange for Fiat's platforms for its fuel-efficient, small and medium-sized compact cars, which will fill a gap in Chrysler's range of models.
The partnership is slated to be formalised sometime in April and would give Fiat access to Chrysler's assembly plants as well as its sales and service networks.
These are all necessary for the Italian automaker's goal of bringing Alfa Romeo back to the US market and introducing its popular new Fiat 500 city car there, both of which need to be produced in the US to be profitable.
Fiat is also reported to have an option to acquire a further 20% in Chrysler should the partnership prove successful.
