Chrysler files bankruptcy and links with Fiat
30/04/09 19:02 Filed in: News
Troubled US motoring giant Chrysler,
which today filed for bankruptcy protection against its creditors,
has announced what it calls a “global strategic alliance” with
Fiat.
Management at Chrysler are clearly desperate to put a positive spin on the story, talking of the alliance creating a “vibrant new company” that will “have access to additional markets”.
"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages,” said Bob Nardelli, Chairman and CEO of Chrysler. “It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."
How it all began. Walter P Chrysler with his Chrysler in 1924
The announcement also reveals that Chrysler have been in discussions with Fiat for more than a year.
Earlier today, under the direction of the US Treasury, Chrysler LLC and 24 of its wholly-owned U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.
It will nowl file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler’s principal assets to the new company. Chrysler say the aim is to have a new leaner company established in a matter of 30 to 60 days.
“To create this vibrant new company, we are using this structured bankruptcy to rapidly implement tough but necessary changes, including: the agreed upon wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers,” said Nardelli.
Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy filing.
Management at Chrysler are clearly desperate to put a positive spin on the story, talking of the alliance creating a “vibrant new company” that will “have access to additional markets”.
"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages,” said Bob Nardelli, Chairman and CEO of Chrysler. “It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."
How it all began. Walter P Chrysler with his Chrysler in 1924
The announcement also reveals that Chrysler have been in discussions with Fiat for more than a year.
Earlier today, under the direction of the US Treasury, Chrysler LLC and 24 of its wholly-owned U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.
It will nowl file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler’s principal assets to the new company. Chrysler say the aim is to have a new leaner company established in a matter of 30 to 60 days.
“To create this vibrant new company, we are using this structured bankruptcy to rapidly implement tough but necessary changes, including: the agreed upon wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers,” said Nardelli.
Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy filing.