Chrysler LLC Vice-President Jim Press surprised the media during the opening of the New York Auto Show yesterday by driving onto the stand to kick off the press conference at the wheel a Fiat 500.

Chrysler has announced the launch of a supplier support programme; however the endorsement of the programme by its key creditor banks including J.P. Morgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, offers a first hint that they might be favouring supporting the struggling carmaker's proposed alliance with Fiat over the other option of bankruptcy.

The Company’s Supplier Support Program is the result of the recent Obama Administration’s announcement of a US$5 billion program to provide suppliers with the confidence they need to continue shipping parts; and the support they need to help access loans to pay their employees and continue their operations.

“Chrysler is extremely pleased to be able to assist in extending this support to help stabilise our supply base, preserve American jobs and ensure the continued production of quality vehicles through our Supplier Support Program,” said Chrysler LLC Senior Vice President and Chief Procurement Officer Scott Garberding. “We applaud the initiative set forth by the Administration and appreciate that Chrysler and the U.S. Treasury came to complete agreement on the terms and conditions of the Company’s program expeditiously. This would not have been possible without the endorsement of our first lien bank group -- J.P. Morgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and others – who provided the necessary authorization allowing Chrysler to make the equity contribution to implement Chrysler’s Supplier Support Program.”

Chrysler’s program is available to suppliers of production parts and materials that are incorporated in the U.S. The program will be administered by Citi Bank and the supplier on-boarding process is already underway. As part of the Administration’s Supplier Support Program, U.S. Treasury agreed to contribute a US$1.5 billion line of credit, with the requirement that Chrysler make a 5 percent capital infusion. Chrysler’s loan agreement requires authorisation of the first lien bank group prior to the Company contributing capital into a new company. Chrysler will continue to work with the President’s Auto Task Force on implementation of its program.