BREAKING NEWS! BREAKING NEWS!
Chrysler LLC is filing for Chapter 11 bankruptcy protection as announced by President Obama today at a Press Conference.
As expected from what has become daily speculation, President Obama has made the following statement, "Over the past month, seemingly insurmountable obstacles have been overcome", "Chrysler and Fiat have formed a partnership that has a strong chance of success", in a televised broadcast.
Talks between key stakeholders of the company broke down when certain creditors were holding out from the latest government offer of swapping the debt for $2 billion dollar, the government then increased the offer to $2.5 billion and were given a Wednesday deadline at 6pm.
The President went on to say "Their failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and it's stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward."
The terms of the partnership between Chrysler and Fiat although not entirely clear, are summarized as follows: 1. Fiat would gain entry into the U.S. automobile market 2. Fiat would have a minority stake in Chrysler ( this would be for a technology exchange, so that Chrysler can make make small auto's) 3. Chrysler would gain access to other global markets that it does not have currently 4. This deal provides no monetary exchange between the two companies.
GM has until June 1, 2009 to have a solid plan in place or it will be forced with the same fate. GMAC and Chrysler Financial it appears will merge under this reorganization plan and these talks are ongoing.
Enjoy Today!That Car Guy
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