Q and A on Chrysler Bankruptcy
Still my favorite Chrysler product
Q. Will Chrysler cease to operate?
A. No. Chrysler is reorganizing under Chapter 11 of the United States Bankruptcy Code. The law allows companies to shed assets, restructure debt, cancel contracts and close operations that normally would have to continue running. Once they secure financing to leave bankruptcy, these companies are reconstituted as new legal entities…
Q. How long will this take?
A. The Obama administration spoke of a “surgical bankruptcy” which it said could be completed in 30 to 60 days. It plans to use Section 363 of the bankruptcy code to sell assets, rid the company of liabilities and restructure its debt, creating a new Chrysler…
Q. What happens to Chrysler dealers?
A. Chrysler Financial will cease making loans for Chrysler vehicles; GMAC, with support from the government, will provide financing for Chrysler dealers.
Q. What happens to Chrysler employees?
A. The White House said it did not expect any reductions in white- or blue-collar jobs as a result of the bankruptcy. However, Chrysler employees who are not union members do not have any job security.
RTFA for details – though it’s just a starter. Chrysler-Fiat merger is on. That bodes well for Chrysler dealers who will begin to pick up salable, economical small cars.
Cripes – I would even consider adding a Fiat 500 to the family fleet though I’m still holding out for a Dakota Pickup with the Sprinter turbo-diesel.