Chrysler completes sales to Fiat, new Chrysler Group begins operations immediately

Posted: Jun 10, 2009
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As reported last night, the Supreme Court approved the sale of Chrysler LLC to Fiat SpA after the process faced delays earlier this week. Today, Chrysler completed the sale of its strongest assets to Fiat SpA into a new company known as Chrysler Group LLC. The new company will begin operations immediately.

Fiat CEO Sergio Marchionne will now become CEO of Chrysler and former CEO Bob Nardelli will return to his former position at Cerberus Capital Management.

Fiat currently owns a 20 percent stake in Chrysler Group LLC and will increase its stake to 35 percent when certain milestones mandated by the agreement are achieved.

Fiat cannot obtain majority control of Chrysler until all taxpayer funds are repaid.

55 percent of Chrysler Group LLC is owned by a UAW retiree health care trust fund, 8 percent is owned by the U.S. Treasury and 2 percent is owned by the Canadian government.

- By: Omar Rana

Source: Reuters


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  • Jason

    Forgive me for my ignorance, but what happens to the shares owned by Daimler and Cerberus? Do they lose 100% of their investment?

    And if Fiat gets Chrysler's good assets, who keeps the bad assets?

  • GMfan87

    bad assets get liquidated and used to pay off debt i think

  • Pat

    i know for sure that Daimler gave up there shares… no idea about Cerberus

  • GMfan87

    bad assets get liquidated and used to pay off debt i think

  • Pat

    i know for sure that Daimler gave up there shares… no idea about Cerberus