Chrysler has said it needs another $5bn (£3.5bn) in loans from the US government to stay afloat, according to the company’s viability plan submitted to the US treasury.
The ailing car maker received a $4bn (£2.8bn) emergency bailout in December but says it needs another $5bn(£3.5bn) by 31 March this year.
Chrysler has also said that it has now restructured it operations so that it will be able to stand on its own feet once it receives the second loan. It intends to start repaying the government loans from 2012.
Part of the survival plan is for Chrysler to press on with what it calls a ‘global alliance’ with Fiat. Company sources say that Fiat and Chrysler employees are already some weeks into establishing platform and component sharing programs.
Although it intends to use Fiat’s smaller front-drive platforms, Chrysler says that some of its own technology will be used by Fiat.
Chrysler also emphasized that the alliance was not crucial to Chrysler staying afloat.