Chrysler files for bankruptcy, signs Fiat deal

[vow66]

http://news.yahoo.com/s/nm/20090430/bs_nm/us_autos_20

Chrysler LLC -- battered for the past two years by disappearing global auto sales and the credit crisis -- filed for bankruptcy on Thursday and announced an industry-changing deal with Fiat after talks to restructure its debt broke down.

Despite weeks of intense negotiations, Chrysler failed to gain the full support from its lenders to avoid the first-ever bankruptcy filing by a major U.S. automaker.

The move was hailed by President Barack Obama as a critical step in saving 30,000 jobs at Chrysler, majority-owned by Cerberus Capital Group , and hundreds of thousands more jobs at affiliated suppliers and dealers.

At the same time, Chrysler as expected entered into an alliance with Italian automaker Fiat SpA where it sold a stake starting at 20 percent and in which Fiat can become the majority owner once the government loans are repaid.

The Chapter 11 filing, in U.S. Bankruptcy Court in Manhattan, sent shock waves through the entire industry -- including Chrysler's rivals and suppliers.

[HopeHoops]

1. Okay, but I have a question.

If Chrysler is bankrupt, how are they going to pay "Fix It Again Tony"?

[Bok_Tukalo]

2. Who's holding the CDS's?

That's the question.

[liberal N proud]

3. Easy Listening, Classical or Rock?

The CD's will be put in the CD changers on each new FIAT.


Sorry, I couldn't resist.



I drove a Chrysler to work today, does that mean I am driving a FIAT home tonight? Hope it makes it.

[Mopar151]

4. Daimiler dumped them like a bad pimp

Killing the Neon on the process, which was their entry level car and still has a good following. I just hope this will not be a repeat of the whole Mitsubishi/Diamond Star debacle.
Fiat is anything but the complete loser some would have you beleive - Rust was their main problem prior to their ignoble retreat from the US market. That, and most of their other issues (Fix it Again Tony does have a certain validity) have been largely solved within the global parts pipeline.