Analyst reports earlier this month warned that the carmaker could face ruin, hit by high pump prices, an economic slowdown and an expected decline in sales of trucks.
But Chrysler has said the “the suggestion of a possible bankruptcy situation is without merit”.
US dealers were reassured by letter that liquidation was not on Chrysler’s agenda.
It also said the company will focus on higher-mileage model for the rest of the year.
The American manufacturer recently closed one of its St Louis plants and cut production at its other.
Soaring fuel prices have crippled sales of pickups, minivans and SUVs that make up more than 65 per cent of Chryslers volume.