Task Force likely to approve additional loans

The Wall Street Journal reports the Auto Task Force set up by President Obama sees a viable future for both Chrysler and General Motors and is prepared to approve additional loans. However, the money will come with a firm timeline for improvement and conditions that will entail sacrifices by management, unions and bondholders.

Task Force members also are said to be interested in seeing the proposed alliance between Chrysler and Fiat SpA go forward and met with officials from the two automakers today.

In Geneva on Tuesday, Sergio Marchionne, Fiat’s CEO, said he is satisfied with the case made for the alliance.

“We have done everything we were supposed to do regarding our Chrysler proposal. I flew to the U.S. twice for long talks with the president’s automotive task force,” Marchionne said. “Now it is up to them to decide.”

Marchionne was realistic when asked about the alliance’s prospects.

“It is useless being optimistic until there is an announcement,” he responded. “I think we did our best and that we could have not done more. I have peace of mind.”