Auburn Hills, Michigan – Chrysler LLC has been granted approval by the U.S. Bankruptcy Court 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 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 rationalized 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.”
Chrysler’s Canada, Mexican and other international operations will also be acquired by Chrysler Group.
As previously announced, Nardelli will resign from Chrysler LLC on completion of the transaction, and return to Cerberus Capital Management as an advisor. He had been leading Chrysler since August 2007.