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View Full Version : Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon?


DFW Auto Club
04-30-2009, 11:51 AM
Filed under: Government/Legal (http://www.autoblog.com/category/government-legal/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)

http://www.blogcdn.com/www.autoblog.com/media/2009/04/chrysler.jpg

President Obama has just concluded a press conference where he announced that Chrysler will indeed head into Chapter 11 bankruptcy proceedings almost immediately. As part of the same announcement, he noted that the Auburn Hills automaker has reached terms with Fiat and will be headed into a partnership agreement that will include a cash infusion and technology transfers. By some estimates, the restructuring is expected to take 30-to-60 days.

Keeping an upbeat tone in his announcement, Obama also reassured Americans that they will be repaid in full before Fiat gets any stake in the automaker, and that GMAC has agreed to step in to provide loans for Chrysler vehicles. Canada is also pitching in to make it work, but the U.S. taxpayers will be on the hook for an additional $8 billion in financing.

Finally, in related news, it is being reported that Chrysler's Bob Nardelli (whom Obama praised during the press conference) will exit the company after the bankruptcy filing is complete.

More details as the story unfolds.Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon? (http://www.autoblog.com/2009/04/30/obama-announces-chrysler-bankruptcy-consummated-deal-with-fiat/) originally appeared on Autoblog (http://www.autoblog.com) on Thu, 30 Apr 2009 12:36:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).



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snowball
04-30-2009, 01:49 PM
Damn MB, stripped Chrysler for all it's great patents, provided no cross technology that was worth a damn and sold it right back off so it could die!!

BMW bought Rover and got it's hands on Rover's 4 wheel drive patents and sold it back off, but at least left it in a little better position using BMW engines and other technology.

:(