The White House just announced that the third largest American automaker, Chrysler, will file for Chapter 11 bankruptcy protection and enter an alliance with Fiat SpA (BIT:F). The bankruptcy case, which is expected to be quick and "surgical", will take place in the United States Bankruptcy Court in New York, and the filing marks the first American automaker to try to restructure under Chapter 11 since 1933 when Studebaker filed. A senior White House official said the case would commence immediately and the government would provide Chrysler with $3 to $3.5 billion debtor-in-possession financing so it could continue with daily operations. After completion of its restructuring plans, Chrysler will receive $4.5 billion in financing to restart operations. The embattled member of the Detroit Three has already received $4.5 billion in aid from the federal government.

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