Chrysler succumbs to bankruptcy

DETROIT (AP) " The first sound of the gavel in Chrysler's bankruptcy case might as well be the bang of a starter's pistol.

The nation's third-largest automaker filed for Chapter 11 bankruptcy protection Thursday with an ambitious plan to emerge in as little as 30 days as a leaner, more nimble company. And Chrysler's first hearing in a New York courtroom this morning may offer the first clue as to whether a quick, "surgical" bankruptcy is actually possible.

After months on government life support, Chrysler is pinning its future on a top-to-bottom reorganization and plans to build cleaner cars through an alliance with Italian automaker Fiat.

In return, the federal government agreed to give Chrysler up to $8 billion in additional aid and to back its warranties.

President Barack Obama on Thursday chastised the funds for seeking an "unjustified taxpayer-funded bailout" after Chrysler and his auto task force cleared the company's other hurdles. Along with the Fiat deal, Chrysler adopted a cost-cutting pact with the UAW this week.

"They were hoping that everybody else would make sacrifices and they would have to make none," Obama said. "I don't stand with those who held out when everybody else is making sacrifices."

The White House said Chrysler could come out of bankruptcy in 30 to 60 days. Under normal circumstances, it would be difficult to complete such a large bankruptcy so quickly.