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Chrysler LLC confirmed Thursday that it will no longer pay retention bonuses as part of the cost-concessions needed to secure more funding from the U.S. Department of Treasury.

"No new retention payments or any other form of bonus, will be awarded after Jan. 2, 2009 as a result of the waivers signed by the company's top 25 executives," Chrysler said in a statement on its Web site. "We continue to work with the U.S. Treasury on a daily basis."

Chrysler and General Motors Corp. (GM) are racing to secure new cost cuts from its executives, suppliers, unions and dealers in order to receive additional low-interest loans to avoid bankruptcy.

Details on Chrysler's progress in winning these cost-concessions must be submitted by March 31. Chrysler is working to obtain another $5 billion in funding after already $4 billion earlier this year.

Separately, Chrysler Chief Executive Bob Nardelli once again stated his case as to why the auto maker could operate as a stand-alone company or partner with Fiat SpA (FIATY). The Fiat partnership, however, would "significantly enhance" the auto maker's long-term viability.

"There are at least four platforms being discussed today [with Fiat] along with two engines and two transmissions so when you think what it would cost for us to develop, it is certainly in the range from $8 billion to $10 billion, Nardelli said in a video clip. The clip will also be released on YouTube.

The Fiat partnership will allow Chrysler to pay back taxpayers more quickly since Fiat would assume responsibility for 35% of all of Chrysler's debt to the U.S. government. Under the proposed terms, Fiat would take a 35% stake in Chrysler and provide the auto maker with its own car technologies.

Chrysler's product portfolio would also see an overall 26% improvement in federal fuel economy standards over 2010 models based on technology provided by Fiat.

"They have what we don't and they are where we aren't," Nardelli said. The partnership would also give Chrysler and Fiat a combined purchasing budget of $80 billion. "It is a perfect fit."

-By Jeff Bennett, Dow Jones Newswires; 248-204-5542; jeff.bennett@dowjones.com