Chrysler Heads Towards Bankruptcy

After failing to make a deal with creditors, automaker Chrysler is expected to file for Chapter 11 bankruptcy today in New York. The White House had been pushing for controlled bankruptcy if the automaker wasn't able to restructure in time; according to CNBC, "The talks for a restructuring of Chrysler had had the full support of the company's key stakeholders, including the UAW and the largest creditors, but the rest of creditors did not agree." Bloomberg News reports, "The president’s staff plans to use the filing to pave the way for Fiat Spa to take a 20 percent stake in the Auburn Hills, Michigan-based automaker." President Obama said last night, "I am actually very hopeful, more hopeful than I was 30 days ago, that we can see a resolution that maintains a viable Chrysler automobile company out... It would be a very quick type of bankruptcy, and they could continue operating and emerge on the other side in a much stronger position." Obama will discuss Chrysler today at noon.

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By Jen Chung in News on April 30, 2009 9:40 AM

Comments [rss]

Snoopy

I hear Kaiser-Fraiser is coming out with some hot cars in the fall. They just bought out Willy's and Toledo will be the new Detroit.

NannyState

I'll never give up my Hupmobile.

ides_of_march

Should have gone bankrupt BEFORE all that taxpayer money got flushed down the toilet with the bail-out.

Nice going Obama.

Your great great grandkids will be paying for this buffoon's economic stupidity for years.

JacqueMehoff

oh noes! but Mopar is such a hipster brand.

blablanyc

Fiat will only own 20% of the shares in Chrysler. The majority of the shares will be in a Union Workers Trust.

It takes 3 to 5 years to develop new cars for the American market. Don't expect any miracles.

blablanyc

Why do we need Chrysler? Just let capitalism do what it needs to do and weed out the weak companies.

jackdonaghy

At least Fiat has made efforts to develop a modern, fuel efficient car. Chrysler has designed unimaginative shit for decades, which is one of the reasons it is in this pickle.

SP

Seriously. I'd much rather own a fiat. Of all European carmakers, theirs are among the most fuel efficient and clean, emissions-wise. The above commenters are morons.

Rob T Firefly

I'm changing my name to Chrysler.

hotstepper

where ya at? where ya at? there ya go! there ya go!

Geoelh

The funny part is, it's hedge funds who are the hold outs. It's not like they originated the debt; they probably bought it last year for pennies on the dollar and are holding the whole process ransom looking to win the lottery.