COLORADO SPRINGS, COLO. -- Chrysler, the nation's third largest car manufacturer, is filing for bankruptcy.

Jeep and Dodge fall under the Chrysler umbrella.

The company lost $8 billion last year.

Sales through March are down 80 percent compared to last year.

The company is now filing a Chapter 11 bankruptcy as part of its plan to come out leaner and stronger with the help of several new partners.

"After consulting with my auto task force, I can report that the necessary steps have been taken to give one of America's most storied automakers, Chrysler, a new lease on life," said President Obama.

Those steps include a partnership with Italian automaker Fiat and an additional $8 billion from the U.S. government.

As part of the deal the United Auto Workers Union, the U.S. government and the Canadian government will also have a share of Chrysler.

Dealers in Colorado Springs are echoing the president's mentality that this plan is a new lease on life for Chrysler.

"The word bankruptcy scares people, but in this situation it's all good. We're looking to going forward without all the questions. I mean we've got a game plan," said Tom Perkins, president of Perkins Dodge.

That game plan includes Chrysler introducing Italian owned Fiat cars in the U.S. for the first time.

"We're going to get a lot of new products and technology they're going to sell our cars and we're going to sell their cars," Perkins said.

Fiat is known for its fuel efficient cars, which Chrysler had been lacking in the past.

The deal allows Chrysler to offer these new models and expand to new markets outside the U.S.

"It's not a downside for us. A healthy corporation is really good for the dealer body," Perkins said.

Filing bankruptcy will allow Chrysler to get rid of the $ 6.9 million it owes a small group of lenders, coming out leaner and stronger is about a month.

"It makes them able to move forward with a lot different debt structure. That kind of baggage that gets built over the years. They are able to get rid of it now," Perkins said.

For those  who already own Chrysler cars, warranties are secure. The U.S. government is promising to back them, but Perkins said Chrysler will still be able to as well.

Perkins also mentioned that Chrysler has faired much better in the Springs than it has in other parts of the country.