'Nothing has happened that would change my mind,' he told reporters after the 2 1/2 -hour, closed-door meeting, which Fiat officials characterized as friendly and informal. Steve Rattner, a Wall Street restructuring expert, and former labor adviser Ron Bloom, ran the meeting, peppering Marchionne with questions not only about the proposed deal with Chrysler but also about European market and industry trends.

Marchionne said he was encouraged by the U.S. officials' grasp of the industry's difficulties. 'The feeling that I got from them is that they recognize the magnitude of the problem and there's an absolute determination to finding a solution,' he said. 'At least, they're engaged.'

Marchionne, an affable Italian-Canadian businessmen credited with turning Fiat around, said the company was 'well advanced' with its due-diligence examination of Chrysler, which is preparing its own report for the U.S. government.

Chrysler and General Motors Corp. are required to submit reports by the end of the month detailing their efforts to restructure and become viable businesses, as a condition of the government aid they have received.

While Chrysler has said it could survive alone, its latest plan suggests it would fare better with an alliance partner.

Combining the two automakers would create synergies for Chrysler of about $7 billion by 2016, the Auburn Hills-based carmaker estimated in its submission to the government.

Fiat has proposed to take an initial 35 percent stake in Chrysler, with an option to acquire another 20 percent, in exchange for sharing small-car platforms and engines with Chrysler. Chrysler would gain seven new small vehicle families and six new engine families from Fiat.

Fiat is not planning to invest cash into Chrysler but Marchionne said the expertise it will share with Chrysler entails 'technology, platforms, engines, know-how -- all stuff that has been paid for and worked on by Fiat over a number of years. If you wanted to buy it on the outside, it would cost you a huge amount of money.'

In addition to $4 billion in government loans that Chrysler has received, the automaker is seeking $5 billion. Marchionne declined to say whether the deal hinged on those loans but said, 'the project is subject to additional financing coming in.'

He said any money coming from the U.S. government would be spent on Chrysler. 'Nothing is going to be taken out of the U.S., and the main objective is going to be to repay every single dollar of taxpayer funding before anybody gets anything.'

Combining the two automakers would create a group selling more than 4 million vehicles annually. The two carmakers would offer each other's brands access to new markets and distribution networks, and they would generate savings by combining their parts procurement. The two estimated their combined purchasing at more than $45 billion annually. Chrysler would also use its plants more efficiently by building Chrysler-badged small Fiats as well as Fiats for sale in North America.