With the clock ticking down to Thursday's deadline for Fiat and Chrysler to forge a deal all parties are working round the clock to and Fiat has said it is still anxious to go ahead even if Chrysler is pushed into Chapter 11 bankruptcy according to sources close to the negotiations. "I can only confirm our unwavering commitment to get this transaction done," said Marchionne. "We see benefits to both Fiat and to Chrysler."

Fiat Group CEO Sergio Marchionne has been in the United States since last Friday as he assists the progress of talks and has been given an "ample mandate" to seal the deal by the Fiat board. Despite the many obstacles remaining to striking a deal with the ailing carmaker he is upbeat as the hours quickly run out, telling analysts that: "I see no reason why it cannot happen." Marchionne has long made it clear that he sees the need to produce more than 6 million vehicles a year as a prerequisite of achieving the economies of scale required to ensure profitability and his talks with Chrysler - as well as GM's Opel/Vauxhall division - are aimed at developing muscular a new global player.

Sources say Fiat is continuing to work closely with the U.S. Treasury Department as it attempts to get a deal in place by the April 30 cut-off point. If a deal isn't reached by Thursday the government has said it will remove the financial lifeline that has kept struggling Chrysler afloat since the beginning of the year. It lent Chrysler US$4 billion at the end of last year and will chuck in another US$500 million to keep its operations going during April.

With the labour unions in the United States and Canada having agreed terms with Chrysler and Fiat in the last few days, the biggest obstacle remaining is the consortium of creditor banks that are owed US$6.9 billion. All these parties are still far apart and the secured creditors haven't yet come close to the demands laid down by the Obama Administration at the end of last month. Because of this Chrysler is also preparing for the eventuality that it might be forced to enter Chapter 11 bankruptcy. Marchionne however prefers trying to salvage Chrysler in its entirety, telling a group of analysts late last week that "I like Chrysler in its totality." Meanwhile the Chief Executive of Intesa Sanpaolo, Corrado Passera, said over the weekend that his bank is prepared to support Fiat's plans for Chrysler.

Marchionne has also been at pains to state that he is not empire building, rather that this alliance is a logical step in inevitable industry consolidation. "This is an incredibly poor industry, we have not earned cost of capital," he told analysts late last week. "Size managed well is good. Size managed for empire building purposes is nonsense. I have absolutely no intention [of] trying to build an empire," he reiterated.