Chrysler said on Dec. 19 it had notified the White House that it agreed with all the terms set by the administration for a financial rescue to avert its imminent collapse.
"A letter of intent was signed which outlines the specific requirements that must be achieved," Chrysler chairman and chief executive Bob Nardelli said. "These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year. Chrysler is committed to meeting these requirements."
An administration official said General Motors and Chrysler would be drawing on the loan immediately, and implementing tough belt-tightening to demonstrate viability.
"The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing," the White House said.
Nardelli thanked President George W. Bush's administration and the Treasury "for their confidence in the company."
Chrysler, the smallest of the Big Three Detroit automakers, is owned by the private equity firm Cerberus Capital Management.
Copyright Agence France-Presse, 2008