Chrysler’s Chapter 11 official

By Geert De Lombaerde Posted on April 30, 2009 at 11:59 am

The Obama administration’s auto task force this morning said it will orchestrate a ’surgical’ bankruptcy for the No. 3 U.S. auto maker that includes an alliance with Fiat.

The agreement with Fiat will allow the Italian company to take a 20% stake in Chrysler that will grow as Fiat meets certain milestones, such as building new models in Chrysler plants. In addition to the $3.5 billion in financing to keep Chrysler operating while in bankruptcy, the government will also provide up to $4.7 billion for the new Chrysler once it emerges.

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Tags: automotive industry, bankruptcy, Barack Obama, Chrysler LLC, Fiat S.p.A., government intervention, manufacturing  

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