Chrysler recently submitted their viability plan to the government to request for a supplementary$2 billion to exceed the $7 billion loan fund and also included in the report are the actions that they will do to cut costs.

The car manufacturer also declared that they will decrease fixed costs by adding $700 million, cutting 100,000 more of its units of production ability, suspending three more concept array and selling $300 million more in their assets.

Chrysler assured that they will complete their viability plan by its deadline on March 31.

One of their strategic plans is to do negotiations for allowances with the United Auto Workers, dealers, debt holders and suppliers. Last year, the car manufacturer asked the federal government to provide them $7 billion loan to help the company survive until the world economy recovered. Unfortunately, the request was denied. Instead of $7 billion, the government gave them $4 billion. But before their announcement of a need of additional $2 billion, Chrysler declared they still need the remaining $3 billion to be able to cope with the global economic condition.

Aside from seeking financial aid from the government, Chrysler had already made alliances with other car manufacturers. Among those proposed partnerships is with Fiat. Under negotiated terms, they agreed that Fiat will provide Chrysler with numbers of small cars and engines. Likewise, Fiat will gain access to the US car market to introduce its products while Chrysler can have the opportunity to join in Fiat’s international markets.