Chrysler set for bankruptcy
* US car maker in trouble * Government bailouts running out * Alliance with Fiat possible...
Struggling US car maker Chrysler is set to file for bankruptcy.
US president Barack Obama will make an announcement today, where he is expected to push the company to file for Chapter 11 bankruptcy protection rather than continue to give Chrysler government bail-outs.
The company had been in last-minute discussions to try and restructure its business in order to qualify for further government cash.
However, reports suggest hedge funds with stakes in Chrysler didn't agree with the proposals to write off the company's debts, thereby forcing the company to file for bankruptcy.
It is thought that by filing for bankruptcy protection, Chrysler would have time to forge an alliance with Fiat.