I hope they can pull it over. I like the Jeeps and Dodge trucks.
FOX Business has confirmed that iconic American car maker Chrysler LLC, unable to forge a deal with its lenders, has filed under Chapter 11 bankruptcy in New York City. There are three affiliates in the case and the case has been filed under Judge Gonzalez, according to Fox Business reporter Ken Sweet.
The announcement marks a watershed moment for one of the most important U.S. industries.
“This is truly a tragedy,” said auto industry historian John B. Montville. “It’s really devastating to the U.S. auto industry.
Chrysler’s bankruptcy restructuring will occur in a partnership with Italian car maker Fiat SpA, according to Obama. The president said the Chrysler/Fiat partnership has a “strong chance of success.”
A senior administration officials said earlier that an alliance with Fiat will involve a “short, surgical bankruptcy.”
Obama said bankruptcy should not be seen “as a sign of weakness,” but rather as the first step toward a resurgent Chrysler.
Chrysler could not immediately be reached for comment.
As part of Chrysler’s agreement with the U.S. Government to remain viable and healthy, Chrysler was given a deadline of Thursday at 11:59 PM to reduce its debt and partner with another company.
Chrysler apparently got close to a deal in the 48 hours leading up to the deadline, but its efforts were not enough to save the company from restructuring under Chapter 11.
Though the U.S. Treasury upped its offer to Chrysler’s lenders on Wednesday by $250 million to $2.25 billion in cash, it was not enough to convince smaller lenders to write off the remaining $6.9 billion in Chrysler’s secured debt.
Chrysler, the third largest U.S. automaker, continues to receive support for its future reorganization from the United Auto Workers union, which ratified a new agreement with Chrysler on Wednesday.
President Obama said in the press conference that he did not "stand with" those who held out while others were making sacrifices, in relation to Chrysler's lenders that held out
Montville said Chrysler might have avoided bankruptcy had its manager shown more foresight.
“This shows a paucity of management style across the auto industry,” he said.
Why, he asked, aren’t the foreign car makers operating in the U.S. facing the same struggles as their U.S. competitors?
Obama closed the press conference by saying, "If you buy a car, I hope you will buy an American car."
Ya know, I just thought; I wonder if this the Kasey Kahne will finally go to a chevy ?
--->JMS