US Court Approves Sale of Chrysler LLC to New Company Formed with Fiat
Chrysler's electric vehicle concept cars
3rd June, 2009
Chrysler LLC announced on Monday that the U.S. Bankruptcy
Court, Southern District of New York (USA), has approved its request to sell substantially all of its
operations to Chrysler Group LLC, the new company formed in alliance with Fiat SpA.
“With this approval, the new Chrysler Group is created and can prepare to launch as a vibrant new
company formed with Fiat,” said Robert L. Nardelli, Chairman and Chief Executive Officer of Chrysler LLC.
“Through the hard work and foresight of many Chrysler stakeholders, Chrysler Group will soon begin
operations with significant strategic advantages, such as a wage and benefit structure for active and retired
employees that is competitive with those of 'transplant' manufacturers; a reduction of debt and interest
expense; the disposition of idle assets; a rationalised and more efficient dealer network; and sound
agreements with our suppliers. While this has been an extremely difficult chapter in Chrysler’s history for
all involved, the new Company and its customers, employees and suppliers can now begin on a fresh
Chrysler’s Mexican, Canadian and other international operations will also be acquired by Chrysler Group.
"We are very pleased with today’s announcement and the opportunities that it brings to our company. At
this stage, it is too early to comment or speculate about how the integration with Fiat might apply in
Australia or New Zealand regarding all aspects of the operation including dealer body and distribution,"
said Gerry Jenkins, Managing Director, Chrysler Australia on Monday.
The alliance with Fiat provides Chrysler Group with access to exciting products that complement the
Company’s current portfolio, technology cooperation and stronger global distribution. Work with Fiat is
already well underway to develop the next generation of environmentally friendly, fuel-efficient high-quality
These and other important steps taken over the past month will position Chrysler Group to provide customers
and dealers with the high quality vehicles and service they expect, and enable the new company to become a
strong competitor. Many of Chrysler’s stakeholders have worked expeditiously together to launch Chrysler
Group, which will move quickly to realise the benefits of the alliance.
“We are very grateful to loyal Chrysler customers who have supported us throughout this process and assure
them Chrysler Group is well prepared to produce and support quality vehicles under the Jeep, Dodge and Chrysler
brands as well as parts under the Mopar brand,” continued Mr. Nardelli. “We also recognise the sacrifices,
unstinting loyalty and enduring belief in Chrysler of many stakeholders, including Cerberus and Daimler, the
UAW and CAW leadership, employees, dealers and suppliers who made critical contributions to the viability of
Chrysler Group, Chrysler Financial and their efforts with GMAC to provide financing, and the energy and
commitment of the U.S. Treasury, the President’s Auto Task Force, Members of Congress and representatives at the
state and community level and Canadian Federal and Ontario Provincial governments in helping to move Chrysler
Group forward. Without the extraordinary efforts of all these constituents, the alliance and the creation of a
new Chrysler would not have been possible.”
Mr. Nardelli, who had been leading Chrysler since August 2007, will resign from Chrysler LLC on completion
of the transaction. He will return to Cerberus Capital Management LP as an advisor.