BREAKING : Bankruptcy judge approves sale of Chrysler assets, and Fiat 500 coming to U.S. in 2011

It was reported earlier, that Chrysler Chapter 11 filing bankruptcy may take up to two years. While that maybe true, it's announced today that Chrysler just got the judge's approval at court for the sale of substantially all of its good assets [which includes United Auto Worker (UAW) VEBA health care trust, and successful products] to Fiat SpA.

Nevertheless, while Fiat is only getting out with 20% of Chrysler, the majority of Chrysler's stake will be in the UAW, at 63%. The 12% rest, is shared to the American and Canadian governments.

So the new company is formed with the worker union, Fiat, and the governments, will be called Chrysler Group LLC. So yes, it's still the same name, but the Obama administration has promised $6 billion to the new Chrysler Group LLC that will make Chrysler, Dodge, Jeep and Fiat vehicles.

It's also reported that with the new alliance, Fiat will finally ship their Fiat 500 minicar overseas to the states market. Fiat has confirmed that it sell its 500 minicar at Chrysler dealerships by early 2011. The Fiat 500 will be the only Fiat-derived vehicle that will be sold at Chrysler dealerships badges as a Fiat. Nonetheless, the new Chrysler announced it is planning six small and mid-sized sedans based on Fiat platforms. While those models will be based on Fiat platforms, they will be designed and engineered by Chrysler.

Finally, Bob Nardelli has stepped down as company CEO and will hand over his responsibilities to C. Robert Kidder who will be Chairman of Chrysler Group LLC.

Source : [Reuters and Automotive News]