DETROIT -- Chrysler LLC says it can survive without a proposed product-sharing alliance with Fiat S.p.A. if it gets an additional $5 billion federal loan. But analysts say Chrysler's stand-alone plan relies on extremely optimistic assumptions.
In its Tuesday, Feb.17, submission to the U.S. Treasury Department, Chrysler laid out two survival plans - one with an alliance with Fiat and one without. In the stand-alone scenario, Chrysler assumes it can maintain U.S. market share, get debt reduction deals with creditors and win price cuts from suppliers.
In a Feb. 17 letter to Chrysler stakeholders, CEO Bob Nardelli said: "We believe our submission meets the terms of the federal loan demonstrating our viability as a stand-alone company, as well as the potential benefits of a strategic alliance."