Fiat Group CEO Sergio Marchionne (above, in Geneva yesterday) will be crossing the Atlantic this week to try to convince US Treasury Department representatives that his plan to strike a deal with Chrysler LLC offers the best way forward for the struggling American carmaker.

Fiat Group CEO Sergio Marchionne will be crossing the Atlantic this week to try to convince US Treasury Department representatives that his plan to strike a deal with Chrysler LLC offers the best way forward for the struggling American carmaker.

"I'm going in the next few days to continue discussions with the federal authorities," Marchionne said at the Geneva Motor Show yesterday where he also watched Fiat unveil the new 500C. He will have to convince members of the US Treasury Department's auto team led by restructuring expert Steven Rattner, as to the benefits of the Fiat alliance when he meets them in Washington tomorrow morning and that Chrysler is a good recipient to receive an additional US$5 billion in aid, a loan that is part of the deal that will see Fiat take a 35 percent stake in exchange of the input of its smaller platforms and technology. This loan comes on top of the US$4 billion that Chrysler received earlier this year. "He has been asked to explain the contribution of Fiat to Chrysler in terms of technology and so on," commented a Fiat spokesperson.

Marchionne said in Geneva that he was 'confident' that he can convince the authorities that the plan is viable and can turn Chrysler into a profitable firm once more. The ambition would be "to create something of value in the medium to long term," he added, saying that this alliance was the way forward in a rapidly changing world. "This is the time to create alliances, despite the arrogance of the CEOs, the market is taking us in that direction." Presently said Marchionne, "we’re doing it all on our own and self-financing in this difficult market."

Although Marchionne is looking for billions of dollars in US state aid for Chrysler he is unhappy that Renault and PSA Peugeot-Citroën are to receive French government provided aid. "When the two big French producers receive 6 billion euros, Fiat is pushed with its back to the wall." Governments around Europe are looking at different ways to assist their domestic car industries, in Italy PM Silvio Berlusconi has announced incentives to scrap more polluting cars which indirectly helps Fiat. The incentives, said Marchionne should help the Melfi factory survive but the future of the Alfa Romeo factory at Pomigliano d'Arco remains troubled.