Less than a month after receiving the first $4 billion from the federal government’s bailout package for the auto industry, Chrysler has revealed that it needs an additional $3 billion to help close an alliance deal with Italy’s Fiat Group. Unlike General Motors, which has been allocated up to $9.4 billion in restructuring loans, Chrysler was only given $4 billion despite the claims that it needed at least $8 billion to completely reform its operations.

The fact that the latest demand is to help facilitate an alliance with a foreign carmaker seeking to gain from the deal, lawmakers in Washington are wary to offer more money. There is also the possibility that Chrysler could one day be controlled by a foreign carmaker.

Despite this, Chrysler will have its chance on February 17 when it is scheduled to present a viability plan that the Obama administration will use to determine whether the automaker will receive more loan money.

As some solace, Chrysler CEO Bob Nardelli told the Detroit Free Press that the additional $3 billion loan and Fiat deal could be closed "basically back to back" after the company meets its loan conditions. He also said that no tax dollars would actually go to Fiat and that the alliance deal was in line with U.S. Treasury's own request for significant restructuring actions.