Business

Chrysler Closer To Filing For Bankruptcy Protection

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Talks aimed at keeping Chrysler out of bankruptcy are said to have broken down. Key investors who hold Chrysler's debt refuse to budge. Chrysler's likely to file for Chapter 11 protection as early as Thursday.

RENEE MONTAGNE, host

NPR's business news starts with Chrysler's next move.

(Soundbite of music)

STEVE INSKEEP, host:

An administration official has told NPR that the country's third-largest automaker will head to bankruptcy court. President Obama is scheduled to make a speech on the auto industry at noon Eastern time today, 9:00 o'clock Pacific. So we can expect to hear more. The decision comes after talks with investors and lenders broke down.

Now bankruptcy does not mean the end of Chrysler. It will keep selling cars and honoring warranties. The bankruptcy process will be a way for Chrysler to get rid of some debt, possibly reduce the number of dealers it has, and also finalize a partnership with the Italian carmaker, Fiat.

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