Chrysler to file for bankruptcy

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Source: CCTV.com | 05-01-2009 09:46

Troubled US auto maker Chrysler will file for bankruptcy protection. US President Barack Obama told a news conference that Chrysler would form an alliance with the Italian car maker, Fiat Group, as it tries to revive its fortunes.

U.S. President Barack Obama (C) speaks about Chrysler  and the auto industry, as he stands with his auto task  force at the White House in Washington April 30, 2009. (Xinhua/Reuters Photo)

President Barack Obama said Chrysler would head into bankruptcy with the aid of up to another eight billion US dollars in taxpayers' money. The funding is a last-resort attempt to restructure the struggling giant.

Barack Obama said, "Today, after consulting with my auto task force, I can report that the necessary steps have been taken to give one of the nation's most storied automakers, Chrysler, a new lease on life. I am pleased to announce that Chrysler and Fiat have formed a partnership that has a strong chance of success."

Obama believes the bankruptcy filing would put the struggling company back on its feet, and that the process for recovery would be relatively fast.