Are you wondering what will happen to Chrysler after Chapter 11 Bankruptcy?
If you have not heard already or you live under a rock, Chrysler has filed for bankruptcy and announced a deal with Fiat S.p.A. We have compiled a list of points briefly describing what will actually happen to Chrysler during and after the bankruptcy. We have included a voting poll allowing you to participate and let us know what you think will ultimately happen to Chrysler.
Below is a list of highlighted points of what will happen to Chrysler during and after bankruptcy.
- Chrysler Bankruptcy will last 30-60 days.
- Fiat will be able to control Chrysler only after the loans are paid back. (part of the bailout)
- Chrysler’s bankruptcy lawyer will oversee bankruptcy proceedings.
- Hundreds of Chrysler dealerships (Chrysler, Dodge and Jeep) will be closing across America. The list has not been complied yet. Chrysler will be evaluating which dealerships will survive the bankruptcy.
- Chrysler will continue to honor all warranties during and after bankruptcy.
- The Chrysler Corp. will be scaled down tremendously including the possible exclusion of some vehicle models within the Chrysler, Dodge and Jeep brands.
- Most Chrysler plants will be put on hold, temporary suspending production until further notice.
- The Chrysler-Fiat deal will make them the 6th largest global automaker.
- The U.S. Treasury will lend up to $6 billion to the Chrysler-Fiat alliance through its restructuring period.
- GMAC will provide dealer and customer financing, and continue to do so after Chrysler emerges from bankruptcy. The U.S. government will provide capitalization that GMAC requires to support the Chrysler business.
- Daimler, a minority shareholder in Chrysler, will waive its share of Chrysler’s $2 billion of second-lien debt, give up its 19 percent equity interest, and pay $600 million to Chrysler’s pension funds.
- U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.
- Fiat brings “billions of dollars” in technology to help Chrysler build more fuel-efficient cars in U.S. factories.