BAILOUTS

Fiat to Oust Chief of Chrysler?

Conflicting reports on Chrysler: The Associated Press is reporting some good news—that Italian carmaker Fiat is prepared to sign a partnership deal with the failing Detroit giant that would save it from a bankruptcy filing. But The Washington Post has a report that bodes ill for Chrysler chief executive Robert Nardelli if his company does file for bankruptcy: Under a plan the government is preparing, he would be replaced by Fiat management. The Obama administration is still holding out hope that a bankruptcy can be averted, but under its plan, the ownership of Chrysler would be “dramatically reordered” and the company would receive about $4 billion more in aid from the Canadian and U.S. governments, plus another $5 billion later. The Obama team would then create a “new Chrysler that would purchase assets of the old company,” The Post reports, with ownership divided among the union’s retiree health fund (55 percent), Fiat (35 percent), and the U.S. government (8 percent).