Hold On Wait A Minute, Supreme Court Issues A Stay, And Delays Chrysler/Fiat Deal...

BREAKING NEWS! BREAKING NEWS!

Ruth Bader Ginsberg, interrupted the U.S. Government, the new Chrysler and Fiat S.p.A. plans to emerge from bankruptcy court with a fresh start.

The stay issued a few minutes before the deadline, has momentarily delayed the merging of the new Chrysler and Fiat and may derail the deal put together by the Obama Administration to bring new life to the ailing Chrysler.

The Indiana State Pension Fund and other parties requested that the U.S. Supreme Court to review the matter This Sunday and requested that the court rule to stop the sale while the group seeks to challenge the sale of the "old' Chrysler" as the pension group believes they are due far more that what they are receiving from the proceeds of the sale as it is currently structured.

Among the various challenges include, the use of federal bailout funds being used illegally, that the sale unlawfully rewards unsecured creditors ahead of secured creditors which amounts to an illegal reorganization plan.

More to come...

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Kevin Kimbrough

That Car Guy

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How Not To Save Detroit As Reported By Hoofy and Boo

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BANKRUPT! CHRYSLER CORPORATION IS FILING FOR BANKRUPTCY PROTECTION!

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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.

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That Car Guy

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Fiat takes a 35% stake in ailing automaker Chrysler... Is this enough?

BREAKING NEWS! BREAKING NEWS!

Chrysler Corporation and Italy's Fiat Automobiles SpA announced today that Fiat will take a 35% stake in the ailing Chrysler Corporation. The deal in which no money will exchange signifies a dramatic move by Chrysler/Cerberus to align its business model for the world stage. Chrysler has been struggling to find profitable small vehicle platforms and has no real presence in the global marketplace.

Chrysler hopes to gain access to gain access to Fiat's small vehicle platforms for the U.S. market and create opportunities to market in other foreign markets in which it has no distribution. Fiat, although strapped for cash has it's eye's on the U.S market to reintroduce itself to anxious Americans starving for more fuel efficient vehicles. Fiat riding the success of recently introduce vehicles has found itself swept up in recent months with declining sales like most auto manufacturers.

Daimler Benz still holds a 19% stake in Chrysler and will continue to hold that position as the proposed deal works its way through the appropriate Commerce Department channels.

This report will be updated as more information comes forward.

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That Car Guy

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