ITALY/FILE: Fiat closes Chrysler deal as new management team is named

Record ID: 722419

  • Title: ITALY/FILE: Fiat closes Chrysler deal as new management team is named
  • Date: 12th June 2009
  • Summary: ROME, ITALY (JUNE 11, 2009) (REUTERS) (MUTE) WIDE OF NEWSPAPERS HEADLINE READING 'FIAT CONQUERS CHRYSLER IN THE USA' HEADLINES READING 'MARCHIONNE SAYS TO WORKERS: WE WILL WIN THE CHALLENGE' AND 'FIAT-CHRYCLER IS BORN, MARCHIONNE IN THE DRIVING SEAT'
  • Embargoed: 27th June 2009 13:00
  • Keywords:
  • Topics: Industry
  • Reuters ID: LVA14TQ1U6FRUN1ROK0HC1AHDSMY
  • Story Text: Fiat SpA closed its acquisition of Chrysler's strongest assets on Wednesday (June 11), a key step in the Italian carmaker's ambitious plan to create a global player to ride out the worldwide auto sales downturn.
    Fiat and Chrysler announced the deal to revive the 84-year old U.S. automaker that had been down to its last dollars before government intervention in late 2008 and completes an Obama administration-directed fast-track reorganisation for Chrysler.
    Other parts of Chrysler will remain in bankruptcy to be sold or closed.
    Fiat Chief Executive Sergio Marchionne became CEO of the new Chrysler Group LLC on Wednesday (June 10). The automaker's former CEO, Bob Nardelli, will return to Cerberus Capital, the former majority owner of Chrysler, as an adviser.
    Chrysler's former vice chairman and president, Jim Press, has been named Marchionne's deputy chief executive, and Fiat's chief financial officer, Richard Palmer, has been named CFO of the new company.
    In a memo to employees, Marchionne voiced optimism about the new company's outlook.
    Marchionne said that Fiat will begin the process of transferring Fiat's technology, platforms and powertrains to Chrysler plants in the next few months.
    In addition to Fiat, Chrysler Group LLC is owned by a union-aligned trust and the U.S. and Canadian governments in taking over the best parts of Chrysler.
    The White House welcomed the completion of the deal and said the new alliance was "poised to emerge as a competitive, viable automaker."
    Chrysler filed for bankruptcy on April 30 and halted production to work through the sale to Fiat, heightening pressure on auto parts suppliers that already had sustained losses due to production cuts at automakers in North America.
    Chrysler said it would resume production soon, but did not give a time frame. GM also halted significant production starting in mid May for several weeks.
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