Chrysler | featured news

President Obama is making a formal announcement this hour about his plans for troubled automakers General Motors and Chrysler, which have already been given $17.4 billion to keep them running.

President Barack Obama will announce the next steps to help General Motors Corp and Chrysler LLC on Monday, the White House said, amid signs of progress for GM in talks aimed at slashing its debt and cutting costs in response to slack demand.

The president's chief of staff criticized U.S. car companies Sunday for relying too long and gas guzzlers and not investing enough in alternative energy vehicles.

Automakers tell the Obama administration that they need at least an additional $14 billion in loans in order to survive economic downturn.

Talks between the United Auto Workers and General Motors Corp central to a turnaround plan for the struggling automaker have broken down over the issue of retiree healthcare costs, a person briefed on the talks said on Saturday.

Reuters reports that Chrysler has unveiled plans to help underwrite Terminator Salvation.

The struggling American auto maker Chrysler, owned by the private equity firm Cerberus Capital Management, signed an agreement with Fiat on Tuesday that would give the Italian car maker a 35% stake in the company.