The auto giant Chrysler has filed for federal bankruptcy protection under a government-brokered deal. Chrysler hopes to form a new company that would be owned by the US government, the Italian auto giant Fiat, and the company’s workers. On Thursday, President Obama said the bankruptcy filing would ensure Chrysler’s continued operation.

President Obama: “No one should be confused about what a bankruptcy process means. This is not a sign of weakness, but rather one more step on a clearly charted path to Chrysler’s revival. Because of the fact that the UAW and many of the banks, the biggest stakeholders in this whole process, have already aligned, have already agreed, this process will be quick.”

Obama also criticized the role of some hedge funds, who he said pushed Chrysler into bankruptcy.