Chrysler to File For Bankruptcy
A last minute plan fell apart and Chrysler will file for bankruptcy. President Obama says it's probably a wise move.
Chrysler will file for Chapter 11 bankruptcy protection in New York, giving Chrysler time to galvanize a partnership with the Italian car maker Fiat Group SpA. The government, which has already poured $4 billion in loans into Chrysler, would provide up to $8 billion more to carry the company through bankruptcy, said senior administration officials speaking on condition of anonymity. The government will also help appoint a new board of directors.
The deals give Chrysler "a new lease on life," President Barack Obama said. "This is not a sign of weakness," he said. "I have eery confidence that Chrysler will emerge from this process stronger and more competitive."
Some good news for Chrysler owners (including Jeep owners like me) and dealers: "Chrysler would still sell cars and the government would back its auto warranties." I'm taking mine in tomorrow for its 3,000 mile checkup.
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