restructuring and resizing: April 2009 Archives

Chrysler files for bankruptcy

| | Comments (0) | TrackBacks (0)

Beleaguered auto manufacturer Chrysler filed for Chapter 11 bankrupty protection today in a move encouraged by the Obama administration. The bankruptcy filing is intended to rapidly clear Chrysler's debts and smoothe a path to a partial acquisition by Italian automaker Fiat.

Chrysler, which received billions of dollars from the United States government, then asked for more to stay afloat, is now conceding an inability to meet its obligations. Chrysler will idle its production lines for an extended period while the company restructures. In an interesting twist, the reorganized company will become majority owned by its employees via an independent trust controlled by the United Auto Workers union's healthcare fund. Fiat and the US government will own the rest.

No announcements have been made at this time regarding Chrysler's product lines or dealer network.


Timely Demise tracks the retail industry as it changes with our unprecedented economic environment. Published by David Wertheimer. Did I miss something? Drop me a line.

About this Archive

This page is a archive of entries in the restructuring and resizing category from April 2009.

restructuring and resizing: March 2009 is the previous archive.

restructuring and resizing: May 2009 is the next archive.

Find recent content on the main index or look in the archives to find all content.