Chrysler Vice-President Jim Press surprised journalists at the New York Auto Show yesterday by arriving on the stage at the wheel of a bright blue Fiat 500. Jim Press, Vice Chairman and President, Chrysler LLC (right) and Frank Klegon, Executive Vice President - Product Development with the new Jeep Grand Cherokee. The Fiat 500 supermini is an unexpected star of the New York Auto Show this week where it is appearing on the Chrysler stand. Frank Klegon arrived on stage driving up a series of steps at the wheel of the new Jeep Grande Cherokee (2011) which was receiving its world preview at the show.

As Fiat CEO Sergio Marchionne flies into Detroit again for more talks today, Chrysler LLC Vice-President Jim Press has said that the carmaker may in fact struggle to wrap up the proposed deal with Fiat within the 30-day time frame that has been allocated by the Obama Administration.

"It's hard to predict because there are so many moving pieces and so many parties involved," Press said in an interview at the New York Auto Show. "Everybody is working hard to the same objective, and that is to achieve good positioning with all of the constituents involved and to get on with the business of building great cars and trucks and making customers satisfied," he added. Marchionne is expected to pay a visit the New York Auto Show as the negotiations continue over the Easter weekend period.

Yesterday Press was more upbeat, telling the media that there was "ample time" in hand to wrap up the deal as he introduced Chrysler on the opening day of the New York Auto Show. "We prefer having a shorter timeframe to get through this period, get all the questions out of our minds, and get back to business as usual,” said Press after he had surprised journalists by arriving on the stage at the wheel of a bright blue Fiat 500. "At this point in time with Fiat, we don’t see anything that would be an impasse or a deal breaker,” he added. As well as Press rolling up in the Fiat 500, Frank Klegon, Executive Vice President - Product Development, arrived on stage driving up a series of steps at the wheel of the new Jeep Grande Cherokee (2011) which was receiving its world preview at the show.

Describing the Fiat alliance as a "marriage", Press was also upbeat that a new company was emerging from the wreckage of Chrysler. "Our employment level at Chrysler is now roughly the same as it was in 1934," he told reporters at the auto show. "We're a new, lean, restructured company," he added. He was also confident that the second potential loan from the US Treasury Department of up to US$6 billion would be more than enough to fund Chrysler's revival. "Part of that is a revolver, so we don't have to seek all of it unless it's necessary," he said. Chrysler Financial, the carmaker's captive financing arm, is set to receive more funds shortly, Press said. Chrysler Financial has already received US$1.5 billion from TARP (Troubled Asset Relief Program) in January, funds which are now exhausted.

Press didn't offer any concrete details on the progress of the key negotiations to reduce its debts to banks and unions. "We’ve had a constructive dialogue going, a cooperative dialogue with all the stakeholders, and we’re hopeful that we’ll be able to achieve the goals," he said.

Last week it was reported that Chrysler had begun negotiations with the consortium of banks, hedge funds and other investors, that hold US$6.9 billion of secured debts. Yesterday it was rumoured that Chrysler has reopened talks with the UAW (United Auto Workers) to reduce it stifling obligations to the Voluntary Employee Beneficiary Association (VEBA) for retiring employees with inside sources saying the target was to reach a new agreement within days. VEBA is designed to cover the medical costs for around 125,000 former and current employees; it was negotiated in 2007 by the UAW which took control of the health costs of workers from GM and Ford as well as Chrysler in exchange for a cash payment. The healthcare scheme is now closed to new staff.

Chrysler's exposure to VEBA stands at US$10.6 billion which it wants to reduce by around a half (US$5.3 billion) in exchange for an equity stake, and securing this agreement was part of the conditions of it receiving a US$4 billion loan from the Treasury Department at the end of next year which is currently propping up the company. GM and Ford are also trying to half their liabilities to VEBA in exchange for giving away similar equity stakes.