In a statement U.S. President Obama has said that "after taking a number of painful steps, and moving through a quick, efficient, and fair bankruptcy process, a new, stronger Chrysler is poised to complete its alliance with Fiat" and that the failed American carmaker will "emerge from bankruptcy in the next few days". With New York Bankruptcy Court Judge Arthur Gonzales yesterday recommending the transfer of Chrysler's key assets into the new alliance, Fiat and Chrysler now have until June 15 to finalise their partnership.

"When my administration took office and began going over Chrysler's books, the future of this great American car company was uncertain," President Barack Obama said yesterday. "In fact, it was not clear whether it had any future at all.  But after consulting with my Auto Task Force, industry experts, and financial advisors, and after asking many tough questions, I became convinced that if Chrysler were willing to undergo a restructuring, and if it were able to form a partnership with a viable global car company, then Chrysler could get a new lease on life. Well, that more promising scenario has now come to pass. Today, after taking a number of painful steps, and moving through a quick, efficient, and fair bankruptcy process, a new, stronger Chrysler is poised to complete its alliance with Fiat. Just 31 days after Chrysler's Chapter 11 bankruptcy filing, a court has approved the Chrysler-Fiat alliance, paving the way for a new Chrysler to emerge from bankruptcy in the next few days," the President added.

''We said this process would be completed quickly and efficiently, and that is exactly what has been accomplished today," said Obama yesterday. The President has pushed the concept of a fast, surgical Chapter 11 process for Chrysler (and now for GM) and the decision of the judge yesterday to recommend the transfer of assets exactly one month since the restructuring procedure started is satisfying to him for taking this path. "Tens of thousands of American jobs will be saved as a result of this extraordinary effort," Obama added.

Chrysler will initially be 55 percent owned by the United Auto Worker's union pension fund while Fiat's stake will be limited to 20 percent. This will rise to 35 percent once Fiat-developed vehicles are being produced in Chrysler's U.S. factories and it can rise to above a controlling 50 percent share once - in theory - a certain percentage of the emergency loans that have been lavished on Chrysler this year are repaid to the U.S. Treasury Department. The U.S. and Canadian governments will hold 10 percent of the stock in the new entity. Former Borden Chemical and Duracell Chairman C. Robert Kidder will become Chairman, while Fiat Group CEO Sergio Marchionne will become the CEO of the new Chrysler entity. Strengthening Fiat's board representation at the new company will be Fiat Powertrain Technologies CEO Alfredo Altavilla, while former Exxon-Mobil vice chairman Lucio Noto is also expected to represent the Italian company's interests on the board.