Chrysler LLC’s future leadership will be determined by the U.S. government and Fiat SpA if Chrysler succeeds at merging with the Italian auto maker.

Chrysler Chief Executive Officer Bob Nardelli, in a note to employees obtained by Dow Jones Newswires, said a new board of directors will be appointed by the federal government and Fiat once a deal is completed. The majority of the directors will be independent.

“The board will have the responsibility to appoint a chairman,” Nardelli said in the letter distributed to employees via e-mail on Thursday. “The board also will select a CEO with Fiat’s concurrence.”

Nardelli’s comments clarify speculation on who will control Chrysler if a merger deal with Fiat is completed and what role Nardelli might play in that new company.

Chrysler is racing to secure new union cost-cutting deals, reduce its debt and ink a Fiat partnership before the federally mandated April 30 deadline.

The Obama administration said it would not provide Chrysler additional access to low-interest loans if the requirements are not met, which could result in the third-largest U.S. auto maker filing for bankruptcy protection.