Chrysler is at the Geneva Motor Show this week which a line up of its models sold on the Europe markets from its three brands: Chrysler, Jeep (above) and Dodge.

Chrysler's Vice-President Jim Press said at the 79th Geneva Motor Show this week that talks with Fiat towards the proposed alliance are on-going at that he is confident that all the barriers to the deal can be overcome.

Fiat is currently conducting due diligence on Chrysler LLC's books. The American carmaker, which is 80.1 percent owned by finance group Cerebus Capital Management, plans to trade a 35 percent stake it itself with Fiat in return for access to its smaller car platforms and efficient powertrain technology. Fiat will be given the option to raise this stake to a controlling 55 percent in the future for a nominal sum.

The deal is dependent on Chrysler attracting a further US$5 billion in loans from the US federal government and to get this cash Chrysler has to meet demands that have been set down by the US Treasury Department to turn it into a viable future proposition. Key to this is Chrysler turning its debts to banks and fiscal liabilities to its unions into share capital, and this is proving difficult for the carmaker to negotiate.

However in Geneva Press was optimistic that these hurdles can be overcome, saying in an interview that: "We don't see any barriers and any deal-breakers at this point. We're hopeful." The Treasury Department will make a decision on the additional US$5 billion loan and thus the future of Chrysler by March 31.