Chrysler CEO Bob Nardelli circulated an email to employees on Wednesday telling them that the auto maker is taking its final step prior to the formation of its alliance with Fiat.

Chrysler is working through Chapter 11 bankruptcy protection, and many people believe that a sale to Fiat is the only way it can survive at all. Chrysler has been battered, along with the rest of the auto industry, by a global recession and weak sales. It received bridge loans from the U.S. government, but a federal task force concluded that Chrysler was not viable as a standalone company. At that point, Fiat emerged as the primary willing partner for a merger.

FOX Business has obtained a copy of the letter Nardelli sent, and the text is as follows.

To: Chrysler Employees and Contractors

Subject: A message from Bob Nardelli

Dear Employees,

We’re now in the final stages of our effort to complete our alliance with Fiat and create a vibrant new car company. In line with our commitment to keep you informed of important news, here are the latest developments.

Over the past three days, some of our executives provided court depositions in response to objections filed to our plans to emerge from Chapter 11 bankruptcy. We are pleased that the U.S. District Judge declined a motion by the Indiana state pension funds on Tuesday to stay the hearing on the sale of substantially all of Chrysler LLC’s assets to a new company, Chrysler Group LLC, that we are forming in partnership with Fiat. The judge refused to move our case from U.S. Bankruptcy Court to the District Court, allowing the sale hearing to proceed as planned. (See the company's statement regarding the Indiana state treasurer's protest by clicking here.)

This hearing on the sale and the creation of our new company began today in the U.S. Bankruptcy Court for the Southern District of New York. This is the key and final step prior to formation of our new company. With the support of the U.S. and Canadian governments, the UAW and CAW, our suppliers and dealers, this new company will be well positioned to move forward as a strong, financially sound automotive company serving our customers with a broader and more competitive lineup of environmentally friendly, fuel-efficient, high-quality vehicles.

We will be represented in court today by senior Chrysler officers as well as by our legal counsel and financial advisors. As is normal in proceedings of this type, there will be an opportunity for anyone objecting to the transaction to be heard in court. Supporters of the transaction, including representatives of the U.S. Treasury, the Canadian government, Fiat, the UAW, our suppliers, dealers and various creditor groups also will be heard.

Following the conclusion of the hearing, the judge will issue an opinion.

Sometimes this opinion is presented orally after a short recess; sometimes the judge will take a little more time before ruling. We are hopeful for a positive outcome. Under the rules that govern this type of bankruptcy, if the judge approves the transaction, he will allow a brief period for anyone opposing the deal to file an appeal. We look forward to continuing this process, with the goal of moving toward a closing.

When there are results to report on the sale hearing, we will continue to provide you updates as soon as possible. Thank you for your continued support as we look forward to a new beginning and future success.

Bob