Chrysler

Chrysler is an American car manufacturer based out of Auburn Hills, Michigan.

Chrysler Timeline

1925: Chrysler is founded by Walter P. Chrysler on June 6 when Maxwell Motor Company was reorganized into the Chrysler Foundation.

1928: Chrysler Plymouth debuts at an affordable price at the time. Chrysler also took on the Dodge Brothers automobile and truck company this year.

1936: Chrysler holds second place in terms of automobile

sales in the United States.

1955: The Imperial debuts.

1960: The Valiant debuts.

1987: Chrysler acquires AMC.

1988: The Eagle debuts.

1998: Chrysler is acquired by Daimler-Benz of Germany, becoming DaimlerChrysler.

2007: The company is sold to Cerberus Capital Management.

2008: As of this year, Chrysler has three worldwide marques in Dodge, Jeep and Chrysler.c

2009: Chrysler seeks financial assistance from Congress, which rejects the big. Fiat ends up taking a major role in Chrysler's management.c

Finances

Chrysler's financial problems were well-documented in 2008 and 2009:

Chrysler announced that it would close all of its production plants for at least a month starting December 19, 2008, due to a decreased demand for their vehicles.

On January 5, 2009, Chrysler reported that their overall sales in the United States plunged 53% in the month prior. The sales of Chrysler trucks went down 51% and the sales of cars dropped 59%.

On June 9, 2009, United States Judge Arthur Gonzalez approved the termination of 789 Chrysler dealer franchises. According to the judge's ruling, those dealer franchises were no longer authorized to act as Chrysler, Dodge or Jeep dealers. The ruling was effective immediately and affected approximately 25 percent of Chrysler's dealer base.c

Debt Trading

On April 28, 2009, an unnamed spokesman said Chrysler reached a tentative agreement with the U.S. government to trade $6.9 billion in secured debt for $2 billion in cash to stave off bankruptcy.c

Attorneys for Chrysler filed a motion by May 2, 2009, to sell nearly all of its assets to Italian automaker Fiat. The assets sold to Fiat would be minus eight plants, which Chrysler planned to close by the end of 2010. Company officials offered the nearly 4,800 workers employed at those plants jobs at other Chrysler facilities.c

Bankruptcy

On April 23, 2009, The New York Times reported that the U.S. Treasury was preparing a bankruptcy filing for Chrysler LLC. The Treasury assured that worker health benefits and pensions would be protected.c

On April 24 of the same year, Chrysler lenders proposed a restructured debt offer, requesting $3.75 billion in debt payment and a 40 percent equity stake in the company's profits. The lenders also dropped their proposal of Fiat investing $1 billion in the company.c

On April 30, Bloomberg reported that Chrysler would file Chapter 11 bankruptcy and "reorganize."c The news came after a report that Fiat was close to signing a partnership deal with struggling Chrysler.