Chrysler Auto Group – A New Age Dawns with Fiat Merger
Today, a Federal Bankruptcy Judge in New York approved the sale of most Chrysler assets to new owner, Italian car manufacturer Fiat. The Associated Press reported today on the Chrysler-Fiat deal, with Chrysler Group LLC CEO Robert Nardelli slated to leave his position once all sales are final.
NEW YORK — A federal bankruptcy judge approved the sale of most of Chrysler LLC’s assets to Italy’s Fiat, moving the American automaker a step closer to its goal of a quick exit from court protection.
Judge Arthur Gonzalez said in his ruling late Sunday that a speedy sale, the centerpiece of a restructuring plan backed by President Barack Obama’s automotive task force, was needed to keep the value of Chrysler from deteriorating and would provide a better return for the company’s stakeholders than if it had chosen to liquidate.
“Any material delay would result in substantial costs in several areas, including the amounts required to restart the operations, loss of skilled workers, loss of suppliers and dealers who could be forced to go out of business in the interim, and the erosion of consumer confidence,” Gonzalez wrote in his opinion.
“In addition, delay may vitiate several vital agreements negotiated amongst the debtors and various constituents.” As a result, the proposed sale must be approved in order to preserve the value of Auburn Hills, Mich.-based Chrysler’s business and what is ultimately left for its stakeholders, Gonzalez said.
“With this approval, the new Chrysler Group is created and can prepare to launch as a vibrant new company formed with Fiat,” Robert Nardelli, Chrysler’s outgoing chairman and chief executive, said in a statement. Nardelli is slated to leave Chrysler once the sale is final.
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