CHRYSLER

Chrysler is working around the clock to complete an alliance with Italy's Fiat SpA that would also result in a new board for the U.S. automaker, Vice Chairman Jim Press said on Wednesday.

Chrysler is working around the clock to complete an alliance with Italy's Fiat SpA that would also result in a new board for the U.S. automaker, Vice Chairman Jim Press said on Wednesday.

Volkswagen AG could launch the Up! mini-car in the United States, the German automaker's U.S. Chief Executive Stefan Jacoby said on Wednesday.

GM edged closer to preparations for possible bankruptcy on Wednesday, a source familiar with the company's plans said, while Germany extended its subsidy for scrapping old cars.

General Motors Corp has attracted 20 potential buyers for its struggling Saab brand and could complete a sale by June as it rushes to offload unprofitable units in a sweeping restructuring.

The star-crossed $7.4 billion Chrysler buyout is not just a headache for private equity firm Cerberus Capital Management, but some of the biggest banks on Wall Street as well.

Ford Motor Co said on Monday it had slashed automotive debt by 38 percent, or $9.9 billion, bolstering its finances amid a deep auto industry downturn and sending its shares up more than 13 percent.

Ford Motor Co has reduced its automotive debt by 38 percent, or $9.9 billion, part of a series of moves to bolster its finances amid a deep industry downturn, sending its shares up more than 11 percent.

Ford Motor Co has reduced its automotive debt by 38 percent, or $9.9 billion, part of a series of moves to bolster its finances amid a deep industry downturn, sending its shares up more than 11 percent.

Bankruptcy is not inevitable for General Motors Corp, said the automaker's new chief executive on Sunday, who is under White House orders to win more concessions from bondholders and unionized workers.

Chrysler LLC's lenders are in talks with the U.S. government to reduce the automaker's debt by swapping some of it out for equity, new debt or a lesser amount in cash, sources familiar with the talks said on Friday.

Chrysler LLC's lenders are in talks with the U.S. government to reduce the automaker's debt by swapping some of it out for equity, new debt or a lesser amount in cash, sources familiar with the talks said on Friday.

Fears that a major U.S. automaker could seek bankruptcy protection are causing auto parts suppliers to demand quicker payments from the manufacturers, exacerbating problems for the already hard-pressed car makers.

U.S. auto sales fell 37 percent in March, a smaller-than-expected drop that encouraged hope that the world's largest car market is nearing a bottom after a freefall that has pulled the industry into a deepening crisis.

U.S. auto sales fell 37 percent in March, a smaller-than-expected drop that encouraged hope the world's largest car market is nearing a bottom after a freefall that has pulled the industry into a deepening crisis.

General Motors Corp on Wednesday reported a 45 percent decline in auto sales for March in the U.S. market, but the drop was broadly within expectations for the struggling automaker.

European car markets reported tentative shoots of recovery on Wednesday but Honda moved to further cut U.S. output as General Motors Corp faced a rising bankruptcy risk and Chrysler raced to secure its survival.

The U.S. government, now directing the turnarounds of General Motors Corp and Chrysler, has said bankruptcy for both could be fast, clean and targeted -- like surgery or a quick rinse.

Fiat SpA's CEO was set for talks with Chrysler LLC labor unions and creditors in Detroit after U.S. authorities gave the carmakers 30 days to set up a partnership to save the ailing U.S. group.

General Motors warned on Tuesday there was a rising chance it could file for bankruptcy by June as Fiat and Chrysler executives met in a race to complete a tie-up the U.S. government has said Chrysler needs to survive.

General Motors Corp and Ford Motor Co announced a new series of incentives covering payments if customers lose their jobs, joining rivals in offering heavy discounts to attract consumers sidelined by the recession.