Court approves creation of new Chrysler - Kansas City Business Journal:

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The “old” Chrysler remains in bankruptcy court to sort out its remaininhg assetsand liabilities. The new Chrysler Groul is free to beginoperations immediately. The Kansas City area has 19 Chryslere dealerships, 11 of whic h will be closed. In a Wednesday release, the compang said that the new Chrysle represents a strategic alliancewith , whicgh holds a 20 percenrt equity interest in the That interest can increase to 35 percent if certain benchmarksw are reached, but Fiat can’t own a majority of the company unti l all taxpayer funds are repaid.
The United Auto Retiree Medical Benefits Trust was issue d a 55 percent equity interest in the new The and the Canadian government were issuesd 8 percent and 2percent respectively, in the new company. The deal was approvef one day after the lifted its stay on the allianc e between Chryslerand Fiat. Fiat CEO Sergiio Marchionne was named as CEO of Chryslerr Groupon Wednesday. Jim Press, former Chrysler LLC vice chairmajnand president, was named as deputy CEO and special advisor of the new company.
“We inten d to build on Chrysler’s culture of innovatio n and Fiat’s complementary technology and expertiswe toexpand Chrysler’s product portfolio both in North America and Marchionne said in the “Those Chrysler operations assumed by the new compan that were idled during this process will soon be back up and and work is already under way on developing new environmentallt friendly, fuel-efficient, high-quality vehicles that we intend to becomw Chrysler’s hallmark going forward.
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