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‘New’ Chrysler Emerges as Alliance with Fiat Sealed

Editor — Fri, 12 Jun 2009 04:30:51 +0000

This Wednesday saw the most important events of the automobile industry when Fiat successfully completed the deal to buy the best assets of the Chrysler which had been forced to file a chapter 11 bankruptcy earlier in April. Both the firms announced the deal was successfully over and the alliance is sealed to be led by the CEO of Fiat, Sergio Marchionne.

This completion marked the end of a six-week bankruptcy period and also has marked the beginning of a new life by seeing the weeding of two big icons in the industry.

The new company will be named the Chrysler Group LLC. When it comes to the benefits, Fiat will get a stake of 20% initially and may get upto 35% if some of its benchmarks are met.

Chrysler in turn will learn more by acquiring more knowledge from the Italian firm’s fuel efficient technology and platforms. It will also use the sales channels of ford to sell more vehicles.

The UAW retirement trust is the owner of 55% of the new company with minimal ownership interests to US and Canadian governments.

The proud CEO of Fiat, Sergio said to the press that this is much awaited deal would serve to be useful to thousands of Chrysler employees who had been in a state of bother for more than a year and it is also a great moment that could change the entire automobile industry’s growth.

The deal has influenced key changes in Chrysler’s management with its CEO Bob leaving the company to give way for Jim press.

Source:autoweek

BREAKING: Supreme Court Stays Sales of Chrysler to Fiat

Editor — Wed, 10 Jun 2009 04:51:40 +0000

The sale of the Chrysler to Fiat has been hindered by the Supreme Court stay. Earlier three Indiana state pension funds had filed a lawsuit in New York because they got 45$ million holding in Chrysler’s secured loans. This case went in the favor of Chrysler and they lost it in the high court.

Following this they have filed another lawsuit in the Supreme Court asking for holding the sales of Chrysler to Fiat.

Based on the lawsuit filed, the Supreme Court jury Ruth Bader Ginsburg has given a decision that the sale would be temporarily delayed until further order is issued. The Chryslers lawyers fear that this stay would affect the deal with Fiat that is scheduled to go under in a few days.

Thus its been tough times for Chryslers and the lawyers are trying hard to break this stay and complete the deal successfully

Source:

1. freep

2. autoblog

Fiat finalizes take over of Opel

admin — Mon, 27 Apr 2009 05:12:23 +0000

Italian carmakers Fiat has finalized its stakes in the beleaguered German carmaker Opel, with the letter of intent to be signed towards the end of this month. Though Fiat had made a secret deal to acquire major stake in Opel, it is not a secret now.

Opel’s works Council Chairman Klaus Franz has confirmed the Italian carmakers interest. He had also stated that the way has been cleared for signing the letter of intent. With the signing, the Italian carmakers would get the majority stake in Fiat.

Though the GM officials in Detroit and government officials in Germany are known to back Fiat’s plans to takeover, Officials in Opel seem to be against such a move. It is rumored that they support a partnership with Magna International. Earlier Opel had held talks with Magna international for a partnership. But the talks between Opel and

Magna seem to have ended with the surprise move of Fiat.

Franz has said that he would try everything to block Fiat’s move to take stakes in Opel. He noted that the take over would lead to job losses and shut down of the factory in Germany as a result of overlaps in their product line-ups. In defence to his opposition to the take over, Franz said that Fiat, which was already in deep debt, would only face financial drain once the company takes over them.

The Opel group had recently appealed to German Chancellor Angela Merkel for a financial package for coming out of the situation.