Chrysler out of bankruptcy as Fiat becomes owner
After overcoming various obstacles, from disgruntled dealers to old-fart pensioners, the sale of Chrysler to Fiat is finally complete. The deal took 42 days, but the sale is now official. Fiat now owns most of Chrysler’s assets and will receive $6.6 billion in “exit financing” from the federal government.
The Obama administration has succeeded in reorganizing Chrysler quickly. The new Chrysler Group LLC has a better chance of being more competitive, having shed much of its legacy labor costs and debt, with new cars from Fiat in the pipeline.
Official statements by soon-to-be-former Chrysler CEO Bob Nardelli and Fiat boss Sergio Marchionne congratulated employees on being a part of “a leaner, healthier and more robust company” and promised that the world’s sixth largest automaker will begin to show signs of improvement immediately.
As the automaker emerges from bankruptcy, Chrysler’s union retiree trust (VEBA) will own 55% of the company, with Fiat getting a 20% share that can grow to a maximum of 35%. The U.S. and Canadian governments split the rest.
One Response to 'Chrysler out of bankruptcy as Fiat becomes owner'
Subscribe to comments with RSS
whatever
Mercio
7 Jun 13 at 6:39 am