Obama planning to announce Chrysler bankruptcy
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Obama planning to announce Chrysler bankruptcy
REPORT: Obama planning to announce Chrysler bankruptcy tomorrow
According to a report by Bloomberg citing the usual unnamed sources, President Obama will announce tomorrow that Chrysler will file for Chapter 11 bankruptcy while continuing to work on its alliance with Fiat.
Bloomberg's source made it clear that the there are still several loose ends and the plan "is not finished yet," but it will likely involve Chrysler's strongest assets being bundled and sold to a new entity. In that scenario, Fiat would become a 20% owner of the Auburn Hills-based automaker, the UAW retiree health-care trust would take a 55% percent stake and the government would gobble up the rest. Essentially, it's the same out-of-court deal initially proposed, but now, with all the benefits (and hurdles) of bankruptcy protection.
No surprise then that Fiat's CEO, Sergio Marchionne, was right in his assessment (see below), nor is it a shocker to anyone that's been following Chrysler's trials and tribulations over the last week and beyond.
According to a report by Bloomberg citing the usual unnamed sources, President Obama will announce tomorrow that Chrysler will file for Chapter 11 bankruptcy while continuing to work on its alliance with Fiat.
Bloomberg's source made it clear that the there are still several loose ends and the plan "is not finished yet," but it will likely involve Chrysler's strongest assets being bundled and sold to a new entity. In that scenario, Fiat would become a 20% owner of the Auburn Hills-based automaker, the UAW retiree health-care trust would take a 55% percent stake and the government would gobble up the rest. Essentially, it's the same out-of-court deal initially proposed, but now, with all the benefits (and hurdles) of bankruptcy protection.
No surprise then that Fiat's CEO, Sergio Marchionne, was right in his assessment (see below), nor is it a shocker to anyone that's been following Chrysler's trials and tribulations over the last week and beyond.
Thread Starter
Administrator
Joined: May 2001
Posts: 23,226
Likes: 9
From: Upstate NY
Vehicle: 2010 Genesis 2.0T
Ford will actually do REAL well if GM goes bankrupt after Chrysler. Reason being is that those people who strictly buy American, wont buy a vehicle from a company that went bankrupt. So if Ford can hang in there just a little longer, they'll reap the benefits of Chrysler and GM going broke.