The beleagured automaker Chrysler recently cut about 15 per cent of its Canadian work force. (David Zalubowski/Associated Press)

In its 85th year in business, Chrysler faces a precarious future. As consumer support waned and resources dried up, the once mighty automaker was forced to ask for bailout money, seek out new alliances, and negotiate labour concessions.

Here is a timeline of recent events, tracking the automaker's difficult path over the past two years.

Aug. 3, 2007: Cerberus takes control of Chrysler

Cerberus Capital Management takes control of Chrysler Group in a deal valued at $7.4 billion US.

In a letter to Daimler employees, DaimlerChrysler chairman Dieter Zetsche writes, "We as Daimler employees have already made our choice. And I am sure the coming years will confirm that we've made the right decision."

In early 2007, Chrysler announced it was cutting 13,000 jobs, including 2,000 in Canada, after reporting a net loss of $1.5 billion in the previous year.

Oct. 10, 2007:UAW and Chrysler avert strike

Just hours after thousands of UAW workers went on strike at Chrysler plants across the U.S., a tentative deal is reached, ending the walkout. Workers pressed for job and pension security while the automaker sought health-care concessions and more freedom to hire contract workers.

Nov. 1, 2007:Chrysler cuts up to 12,000 jobs, eliminates models

In addition to scaling back its workforce, Chrysler announces it will stop producing the Chrysler Pacifica, the Dodge Magnum, the Crossfire and the PT Cruiser. The company also says it will roll out new vehicles including the Dodge Journey and Challenger and hybrid versions of the Chrysler Aspen and Dodge Durango.

June 9, 2008:Consumers grapple with rising pump prices

Steadily surging gas prices climb to $1.51 in Montreal while the national average reaches $1.34 a litre.

A month later, Chrysler Canada says its June sales totalled 22,194 — a one per cent increase over June 2007. But a few months later, Chrysler says sales reached 107,349 in September — a 33 per cent decline in year-over-year comparisons.

Oct. 11, 2008:Chrysler, GM flirt with merger: reports

Struggling General Motors Corp. and Chrysler LLC hold talks about a potential merger, according to media reports. A few months later, GM denies that it has restarted merger talks as the U.S. government considered a multi-billion-dollar rescue package for GM, Chrysler and Ford.

Nov. 18, 2008: Auto execs plead for bailout, face criticism

Chrysler CEO Robert Nardelli testifies on Capitol Hill in Washington, but has since announced plans to resign. (Gerald Herbert/Associated Press)GM head Rick Wagoner along with Robert Nardelli of Chrysler LLC and Alan Mulally of Ford Motor Co. go before the U.S. Senate Banking Committee seeking $25 billion in government aid.

"We are willing to provide full financial transparency, and welcome the government as a stakeholder," Nardelli, Chrysler's CEO, says in written testimony to the Senate.

But critics argue the automakers should not receive special treatment as other industries continue to suffer without comparable aid. Representative Gary Ackerman also censures the executives, each of whom travelled to the hearings by private jet. "Couldn't you have downgraded to first class or something, or jetpooled … to get here?" he asks. "It's almost like seeing a guy show up at the soup kitchen in a high hat and tuxedo."

Dec. 12, 2008: Bailout package dies in Senate

A planned $14-billion US federal bailout of the Big Three carmakers dies on the U.S. Senate floor after negotiations between Democrats and Republicans collapsed over a dispute about wage cuts for autoworkers.

Dec. 17, 2008: Chrysler closes all 30 manufacturing plants for one month

In a bid to save cash and adjust for slowing demand, Chrysler announces plans to close its 30 manufacturing plants for a month. The Detroit automaker says with scarce financing options, consumers are shying away from showrooms.

Dec. 19, 2008: Bush offers $17.4B to automakers

U.S. President George W. Bush offers automakers $17.4 billion in short-term loans. The plan calls on firms to limit executive compensation and get rid of company perks.

"If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers," Bush says during a news conference at the White House. "Under ordinary circumstances, I would say this is the price that failed companies must pay. These are not ordinary circumstances."

The loans are drawn from the Troubled Asset Relief Program (TARP), a $700-billion rescue package approved by the U.S. Congress.

Jan. 20, 2009: Chrysler, Fiat unveil alliance plans

Fiat and Chrysler sign a "non-binding" agreement that will see the Italian company get an initial 35 per cent stake in the U.S. automaker. Fiat will not invest money in Chrysler but pledges to provide access to its small car platforms and fuel-efficient technology. The alliance would also provide Chrysler with access to markets outside of North America.

Feb. 17, 2009: Chrysler submits financing plan to Treasury Department

'We believe Chrysler will be viable and will play a vital role in supporting the American economy and in providing American jobs.'—Robert Nardelli, Chrysler chairman

In plans submitted to the Treasury Department, Chrysler asks for another $2 billion US on top of the $4 billion it has already received and the $3 billion it's expecting from Washington. The company plans to cut 3,000 jobs, drop three models and reduce production capacity.

"We believe Chrysler will be viable and will play a vital role in supporting the American economy and in providing American jobs," says Chrysler CEO Robert Nardelli.

March 11, 2009: Chrysler warns of Canadian plant closures

Chrysler LLC warns that it could close its Canadian plants unless it gets enough concessions from its workers, along with government aid and resolution of a tax dispute. Chrysler president Tom LaSorda tells the House of Commons Finance Committee that the concessions deal between the Canadian Auto Workers union and General Motors is not acceptable to Chrysler.

March 30, 2009: GM, Chrysler scolded but given more time to restructure

U.S. President Barack Obama says the U.S. government has determined that Chrysler is not viable on its own, and gives the company 30 days to come up with a technology transfer agreement with European automaker Fiat. If an agreement can be reached in that time, the U.S. government will consider providing Chrysler with the $6 billion US in financing it has requested.

Meanwhile in Canada, Federal Industry Minister Tony Clement, along with Finance Minister Jim Flaherty and Ontario Economic Development Minister Michael Bryant give Chrysler 30 days to reach a deal with the CAW union and with Fiat. Chrysler is given $250 million of the $1 billion allocated, while the start of $3 billion in funds for GM will begin to flow in early April.

April 26, 2009: Chrysler workers approve deal reached by company, CAW

Thousands of Chrysler Canada workers vote in favour of a tentative deal between the ailing automaker and their union. "Our members understand better than anyone the current turmoil of the domestic auto industry," CAW president Ken Lewenza said in a release. "The high acceptance of this agreement is a recognition that although workers did not cause this crisis, we all have an interest in maintaining good jobs and ensuring the auto industry remains central to the overall Canadian economy."

April 27, 2009: Daimler cuts more links with Chrysler German automaker

Daimler reaches a deal with Chrysler, Chrysler's controlling shareholder, Cerberus Capital, and the U.S. government's Pension Benefit Guaranty Corporation "covering issues still pending between the parties."

Daimler agrees to the following:

• Forgive loans it is owed by Chrysler, and have its 19.9 per cent equity stake in Chrysler redeemed.
• Pay $200 million US a year into Chrysler's pension plans for the next two years, but get out from under a $1-billion loan guarantee to the pension corporation.

The deal will cost Daimler $700 million.

April 30: Chrysler to file for bankruptcy

U.S. President Barack Obama says Chrysler will file for bankruptcy after failing to secure a debt-reduction agreement with creditors. Chrysler CEO Robert Nardelli also announces plans to resign, saying a nine-person board would be at the helm of the company.

Under the restructuring plan, Canada and Ontario will supply $2.42 billion in financing and will have a two per cent equity stake in the company.

Obama noted Chrysler stands a good chance of succeeding after emerging from bankruptcy, owing to its new partnership with Italy's Fiat Group SpA.