REPORT: Obama planning to announce Chrysler bankruptcy tomorrow

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Filed under: Government/Legal, Chrysler, LLC., FIAT

According to a report by Bloomberg citing the usual unnamed sources, President Obama will announce tomorrow that Chrysler will file for Chapter 11 bankruptcy while continuing to work on its alliance with Fiat.

Bloomberg's source made it clear that the there are still several loose ends and the plan "is not finished yet," but it will likely involve Chrysler's strongest assets being bundled and sold to a new entity. In that scenario, Fiat would become a 20% owner of the Auburn Hills-based automaker, the UAW retiree health-care trust would take a 55% percent stake and the government would gobble up the rest. Essentially, it's the same out-of-court deal initially proposed, but now, with all the benefits (and hurdles) of bankruptcy protection.

No surprise then that Fiat's CEO, Sergio Marchionne, was right in his assessment (see below), nor is it a shocker to anyone that's been following Chrysler's trials and tribulations over the last week and beyond.

[Source: Bloomberg | Image Source: Bill Pugliano/Getty]

REPORT: Obama planning to announce Chrysler bankruptcy tomorrow originally appeared on Autoblog on Wed, 29 Apr 2009 17:09:00 EST. Please see our terms for use of feeds.

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