NEW DEAL FIAT-CHRYSLER

For its part, Chrysler was too reliant on the domestic auto market, according to the officials. In addition, a significant "hollowing out" of the company by its past owners had left it unable to compete effectively as a stand-alone company, the officials said.Any restructuring for Chrysler would have to involve a partnership, most likely a deal with Fiat which has had an "agreement in principal" with Chrysler since January.Chrysler is getting 30 days to work out a deal with Fiat, which is the only way the officials believe the carmaker will survive. If that can happen, the administration is prepared to lend Chrysler $6 billion dollars more.While government officials said it was their "goal, hope and ambition" for a Chrysler-Fiat deal to work, the agreement terms would need to be modified from what the companies had previously announced.Fiat had originally planned to take a 35% stake in Chrysler, but that stake would have to be lower. Fiat would also not be allowed to own a majority stake in Chrysler until after all government loans have been repaid.There is sufficient money in existing funds to finance these plans, the officials said, who added that there would be no immediate need to ask Congress to appropriate more.