CHRYSLER

Chrysler won a round of concessions from its Canadian union on Friday while General Motors Corp soaked up $2 billion more in U.S. government aid and Ford Motor Co posted a narrower-than-expected loss that sent its shares soaring.

Chrysler's lenders and a Canadian union continued talks on Friday with less than a week to a U.S. government deadline to cut deals, as General Motors Corp drew $2 billion more in government aid.

Chrysler LLC's lenders offered to cut the amount they are owed in a proposal to the Obama administration that points to an acceleration in the pace of high-stakes debt restructuring talks.

Chrysler's lenders and a Canadian union continued talks with less than a week to a U.S. government deadline to cut deals, as Ford Motor Co posted a $1.4 billion loss that was less than analysts had expected.

Chrysler LLC's first-lien lenders have offered to cut the amount they are owed to $3.75 billion, moving closer to the position of the U.S. Treasury in high-stakes debt restructuring talks, according to a person with direct knowledge of the proposal.

Chrysler LLC is making progress in restructuring talks involving the U.S. government and has no plans to file for bankruptcy before its month-end deadline, the automaker told its U.S. dealers on Friday.

Ford Motor Co posted a smaller-than-expected first-quarter loss and said it was on track to at least break even in 2011 and did not expect to seek U.S. government loans, sending its shares up as much as 20 percent.

With a week remaining for Chrysler LLC to clinch a deal with Italy's Fiat , the U.S. automaker is readying a bankruptcy plan but still focused on reaching an alliance with the support of the Obama administration, people with knowledge of the discussions said on Thursday.

Ford Motor Co posted a smaller-than-expected first-quarter loss and said it was on track to at least break even in 2011 and did not expect to seek U.S. government loans, sending its shares up more than 22 percent.

Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) is expected to post a large first-quarter net loss amid the global economic downturn that has pressured results in the United States, Western Europe and other developed economies.

Chrysler LLC's first-lien lenders are preparing another counter-offer to the U.S. Treasury that involves reducing the automaker's debt, sources familiar with the matter said on Thursday.

Amid rumors of bankruptcy, Chrysler revealed it intends to make an all-electric version of its Town and Country minivans that will be sold exclusively to the U.S. Postal Service.

Preparations are underway by the Treasury department for the bankruptcy filing of Chrysler which could come as early as next week if Chrysler can swing a deal with its lenders, the New York Times reported.

The Treasury is preparing a Chapter 11 bankruptcy filing for Chrysler LLC that could come as soon as next week, The New York Times reported on Thursday, citing people with direct knowledge of the matter.

The Treasury is preparing a Chapter 11 bankruptcy filing for Chrysler LLC that could come as soon as next week, The New York Times reported on Thursday, citing people with direct knowledge of the matter.

General Motors moved closer to selling a majority stake in Opel, while the deadline for Chrysler to find a partner entered its final days, and Japan's Toyota kept its top global ranking even after reporting a 27 percent drop in sales.

The Treasury has raised its offer to Chrysler lenders with just over a week remaining for the embattled automaker to reach deals to cut its debt, labor costs and reach an alliance with Italy's Fiat SpA, sources said on Wednesday.

Italian industrial group Fiat SpA said on Thursday it was still in talks to form a partnership with ailing U.S. carmaker Chrysler , adding that it aimed to reach a deal by an April 30 deadline.

Struggling U.S. carmaker General Motors Corp is moving nearer to a deal to offload its Opel unit, having found a prospective buyer in Italy's Fiat SpA , an Opel supervisory board member said on Thursday.

Struggling U.S. carmaker General Motors Corp appeared set for a deal next week to offload a majority stake in its German unit Opel, having found a buyer in Italy's Fiat SpA , among others.

If any of the big three U.S. automakers is forced to sell assets in a liquidation, their brands and patents may attract the most interest, while the manufacturing assets could be a tough sell.