Chrysler LLC wants to transfer the vast majority of its supply base to a new company that will be formed from its proposed alliance with Fiat SpA.

The automaker plans to use much of the $4.1 billion in financing that is keeping it going during bankruptcy to pay outstanding bills to parts makers and complete the transfers quickly.
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Chrysler is busily working on a viability plan to hand into the U.S. government on February 17th, and the Michigan automaker is banking on more supplier price cuts being part of that report. Chrysler’s suppliers are already contractually obligated to give Chrysler annual price decreases, but the embattled automaker is seeking further cuts in order to aid its North American turnaround efforts.
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