Fiat and Chrysler deal completed
New company to begin operating immediately
Fiat and Chrysler have completed the deal that will put Chrysler’s good assets into a new firm. Fiat chief executive Sergio Marchionne will take control of the new company, which will begin operating immediately. Mr Marchiionee said "this is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole.”
The deal was completed after the US Supreme Court dismissed an appeal against it from three Indiana state pension and construction funds. Chrysler filed for bankruptcy protection on 30 April, suffering from depleted sales, huge debts, and pension and healthcare costs. The deal will now bring Chrysler out from the bankruptcy protection and the factories that have been temporarily closed during the bankruptcy process should be resuming production shortly.
The new Chrysler will still have its headquarters in the US state of Michigan and will produce Chrysler, Jeep and Dodge branded vehicles and Mopar spare parts.