Chrysler to file for bankruptcy

Plymouth 'Cuda

According to the BBC, Chrysler is slated to begin filing for bankruptcy today.  The news came after negotiations between Chrysler and its creditors fell apart late last night, with creditors turning down an offer for $2 billion in cash, in exchange for the $6.9 billion that Chrysler owed to its major lenders.  Although 70% of creditors were in favour of the deal, a small minority of hedge funds stood in the way.  A deal had to be reached by midnight tonight (April 30th, 2009) in order to qualify for the next round of government loans.

President Obama claims that this won’t be the end of the ill-fated pentastar brand, saying that Chrysler will emerge from bankruptcy as a stronger company.  In fact, Chrysler may actually gain from Chapter 11 bankruptcy proceedings, with creditors getting even less than the $2 bn. previously on the table.2009 Dodge Challenger Police Car

The bankruptcy is just one more blow to the Chrysler-Dodge-Jeep brand, with Daimler recently giving up its final 19% stake in the company, and writing down the last of Chrysler’s debts owed to them.  Daimler called this the final separation between the two firms.

It is now up to company brass to entice Fiat into picking up 20% of the company.  This would give the Fiat group, whose products range from Ferrari supercars to Case-New Holland farm equipment, better access to the North American market, while giving Chrysler access to Fiat’s expertise in building small cars.

via BBC

Come check out our Facebook page-you can connect with other gearheads, share pictures of your own ride, and find out when the  newest stories come up!


2 Responses to “Chrysler to file for bankruptcy”

  1. 1 blasterhappy
    April 30, 2009 at 7:04 pm

    Yeah it seems that Chrysler has come full circle. In the mid 80s Iacocca teamed them up with Mitsubshi to pull them out of the hole. Now they are looking at Fiat to save them. I think they will come out of this actually a better company. They may actually build a car that is based on fuel economy that the American people actually want. I’m scared to see what they will look like though. I have seen some of Fiat’s Econo cars and they are not more than a bubble on wheels and remind me of the Yugo only with no so many sharp corners. HAHA!

    Take a look at Chrysler’s Future:

  2. May 1, 2009 at 4:28 pm

    Full circle, indeed. First Mistubishi, then Daimler, now Fiat are all trying to make Chrysler work. Maybe if they just concentrated on making good, solid, dependable, affordable-to-own cars that excite people into driving them, maybe they could save themselves next time.

    And yeah, I’ve seen a Top Gear episode with the new Fiat 500–apparently it’s a high-end luxury hatchback, which may not go over so well here. Maybe later I’ll post pics of an oldskool Fiat 500 from back in Europe…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

    follow me on Twitter


    April 2009
    M T W T F S S
    « Mar   May »



    %d bloggers like this: