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.

Source: Freep