Fiat and Chrysler are fiercely working on an alliance which is liking to come together in the next two weeks.
According to Chrysler, the new co-op will result in the US brand having a new board. Fiat’s chief executive Sergio Marchionne has already told newspapers that he could end up running both companies.
The future of Chrysler’s current boss, Robert Nardelli, is also uncertain as he has himself said that a new CEO would be chosen for Chrysler with “Fiat’s concurrence”.
Chrysler is currently surviving on $4 billion (£2.7bn) in US government loans. President Barack Obama has given Chrysler until the end of this month to work out a deal with Fiat and come back to Congress with a revitalised regeneration plan.