NEW YORK (AP) — Chrysler president and vice-chairman Jim Press said yesterday the government's May 1 deadline for the automaker to complete a deal with Fiat allows "ample time" to reach a definitive agreement that is key to saving Chrysler from bankruptcy.

"We prefer having a shorter timeframe to get through this period, get all the questions out of our minds, and get back to business as usual," Press said during the first day of media previews at the New York International Auto Show.

He surprised reporters at Chrysler's news conference to unveil a new Jeep Grand Cherokee by arriving on the stage in an iconic Fiat 500 subcompact. The 500, one of the Italian automaker's most successful models, would help fill the void of small vehicles in Chrysler's lineup if Chrysler survives and brings Fiat cars to US showrooms by 2011, as planned.

"Don't you think that this would be a perfect car to get around New York City?" he told reporters. Shortly after, the 2011 Jeep Grand Cherokee rounded the stage's corner and ascended a series of steps onto the stage.

The vehicle, which will be 11 percent more fuel efficient than its predecessor, will go on sale early next year.

Press said Chrysler has been aggressively moving to reduce costs while still unveiling new vehicles. The company has plans to introduce eight new vehicles in the next 18 months.

"We realise we have a responsibility to the American public," he said.

Press said Chrysler has been having a "constructive dialogue" with Fiat. The Italian automaker's chief executive, Sergio Marchionne, flew to Detroit on March 30, the day the Obama administration announced Chrysler and General Motors Corp.'s restructuring plans were insufficient and set strict deadlines for the companies to reach new goals or face bankruptcy.

"At this point in time with Fiat, we don't see anything that would be an impasse or a deal breaker," Press said. "We've had a constructive dialogue going, a cooperative dialogue with all the stakeholders, and we're hopeful that we'll be able to achieve the goals."

He said the company is progressing under the assumption that bankruptcy will not be required.

¿ General Motors Corp., facing a potential June 1 bankruptcy without new debt cuts, is meeting this week and next with a team from the US Treasury to craft a revised plan to save the company. The meetings are led for the Treasury by Harry Wilson, a former partner in Silver Point Capital LP, and about 14 other people including advisers from Boston Consulting Group and Rothschild Group, said Josh Earnest, a White House deputy press secretary. GM and the department's team will work to speed existing cuts and identify new savings, Earnest said yesterday.

"It underscores that they are trying to find an alternative to bankruptcy even if that's difficult to achieve," said John Casesa, managing partner of Casesa Shapiro Group in New York and former auto analyst at Merrill Lynch. "It's a sign of the sincerity of the process, at least."