Thursday, June 11, 2009

It's Official : Chrysler exits bankruptcy, Fiat steps in to makes changes immediately

Finally! Chrysler has finally finished its Chapter 11 bankruptcy filing, and moved its 'Good Assets' to Fiat, which took only 42 days from the bankruptcy day. With a couple of signatures and a wire transfer Wednesday morning, the sale was official. Fiat gets most of Chrysler's assets and $6.6 billion in "exit financing" from the federal government.

Now with Fiat in-control and the bankruptcy rules, Chrysler is now in an immediate change. Highlighting the most important changes to note are:

* A new name. the new company will be officially named 'Chrysler Group LLC'.

* As reported earlier, a new CEO for a new Chrysler. Bob Nardelli is now officially replaced by new CEO, C. Robert Kidder. Chrysler's current chairman Jim Press is also pronounced as Deputy CEO.

* Deep cutting-cost, analysing any good assets as 'Good Chrysler', and bad assets as 'Bad Chrysler'. Fiat will also decide to discard models, and coming up with all-new models for Chrysler.

* Closing 789 Chrysler-Dodge-Jeep dealerships across U.S., but Fiat models to come to U.S. sometime in 2011 market though Chrysler dealers.

* Producing more fuel-efficient hybrids and EV automobiles for future Chrysler.

* The Dodge Viper brandname, which Chrysler's old management wanted to sell, is now up to Fiat's decision.

As Chrysler just emerged its bankruptcy, its shares goes as: 55% for Chrysler's worker unions (UAW), Fiat gets 20% which may get up to 35% max, and the 12% rest, is shared to the American and Canadian governments. If the Fiat-Chrysler deal is any indication, General Motors may see a quick exit from bankruptcy as well. All there is to it now, that Chrysler and GM come up with really attractive and competitive products that consumer might actually consider to buy.

Source : [Chrysler via The New York Times -- Image by Sean Gallup/Getty]

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