05/30/2009 05:12 am ET | Updated May 25, 2011

Chrysler Bankruptcy Plan Would Replace CEO With Fiat Management

Chrysler chief executive Robert Nardelli would be replaced by the management of Italian automaker Fiat under a bankruptcy plan that the United States is preparing for the storied automaker, sources familiar with the matter said.

While the government is holding out hope that the bankruptcy could be averted at the 11th hour, the administration has detailed plans in which the ownership of Chrysler would be dramatically reordered and the company would receive billions more in aid from the United States and Canada, where the company has substantial operations, industry sources said.

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