Fiat-Chrysler marriage consummated

As General Motors enters bankruptcy Chrysler is set to emerge after the US Bankruptcy Court approved the sale of its assets to Fiat SpA. Chrysler Group LLC is the new entity that has effectively taken over the old Chrysler LLC operations.

"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 CEO 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 page."

The deal includes all Chrysler's international operations and the announcement of the sale was well received by the Australian arm.

"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.

Fiat has confirmed it will begin selling the 500 hatch in the US at Chrysler dealers within 18 months but future Fiat-based Chrysler products will be unique to the US brand.

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