With lawmakers drawing closer to a loan deal to save Chrysler and General Motors, Chrysler CEO Bob Nardelli told workers this morning that he is “very encouraged by developments over the weekend.”

“While the situation in Washington remains dynamic, I am very encouraged by the developments over the weekend and the growing interest shown by Congress and the administration to provide needed financial assistance to the three Detroit automakers,” he said in a memo to employees obtained by the Free Press.

He cautioned that “this process is far from over.”

Chrysler has asked for $7 billion by the end of the month and has warned that without immediate help its liquidity could fall below the level necessary to sustain the company through the first three months of 2009.

Last week, Nardelli announced Chrysler will be seeking $4 billion in new concessions from all constituents, such as banks, shareholders, unions, suppliers, dealers, salaried employees and executives.

“Assuming the receipt of the bridge loan, concessions from all Chrysler’s major constituencies and our continued restructuring and transformation, Chrysler would manage through the current economic downturn and generate adequate cash to begin repayment of the loan in 2012,” Nardelli wrote.

Nardelli thanked workers for their support.

“I also want to extend my heartfelt thanks to Ron Gettelfinger, the UAW leadership team, and all the employees, dealers, suppliers and friends of Chrysler who spoke out in our support,” Nardelli wrote. “You should know that your message and your voices are being heard. Those efforts helped raise awareness that the automotive industry is the backbone of the nation’s economy and affects many other businesses.”

Original Story - Detroit Free Press