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• Chrysler is an American car manufacturer based out of Auburn Hills, Michigan. Chrysler's financial problems have been well documented in 2008 and 2009.

  On June 9, 2009, U.S. Judge Arthur Gonzalez approved the termination of 789 Chrysler dealer franchises. According to the judge's ruling, those dealer franchises are no longer authorized to act as Chrysler, Dodge and Jeep dealers. The ruling is effective immediately and affects approximately 25 percent of Chrysler's dealer base.Fox News: Bankruptcy Judge Says Chrysler Can Terminate 789 Dealers' Franchises (June 9, 2009)

  For the first time since it declared bankruptcy, Chrysler has announced that it will be reopening 7 of 11 assembly lines, that were shut-down subsequent to the April filing of Chapter 11.http://money.cnn.com/2009/06/17/news/companies/chrysler_restart/?postversion=2009061715

• Fast Facts

  1. Privately owned company
  2. Established: June 6, 1925JB car pages: Chrysler Reviews and History
  3. Founder: Walter P. Chrysler
  4. Industry: Automotive
  5. Headquarters located in Auburn Hills, Michigan
  6. CEO: Robert L. Nardelli
  7. Staff: 72,000
  8. Sold 191,423 vehicles in December 2007Associated Press: Chrysler Sales Plummet 53 Percent (January 5, 2009)
  9. Sold 89,813 vehicles in December 2008Associated Press: Chrysler Sales Plummet 53 Percent (January 5, 2009)

• 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. The deal, if accepted by all 45 parties, may help Chrysler cement an alliance with Fiat and stave off bankruptcy.Bloomberg: U.S. Reaches Deal With Chrysler Banks, Person Says (Update2) (April 28, 2009)

  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 will be minus eight plants, which Chrysler plans to close by the end of 2010. Company officials have said they will offer the nearly 4,800 workers employed at those plants jobs at other Chrysler facilities.Associated Press: Chrysler to close 5 more plants... (May 1, 2009)

  On May 14, 2009, Chrysler announced plans to break contracts with 789 of its dealerships, essentially closing those dealership locations. The motion must be approved by U.S. Bankruptcy Judge Arthur Gonzalez before it can go into effect.Bloomberg.com: Chrysler Seeks to Reject 789 Dealership Agreements

• Economic Troubles

  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.CNNMoney: GM, Chrysler Face Immediate Cash Crisis As Senate Vote Fails (December 12, 2008)

  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%.Associated Press: Chrysler Sales Plummet 53 Percent (January 5, 2009)

• Cerberus Acquisition

  In early 2007, Daimler agreed to pay Cerberus Capital Management $650 million to assume control of Chrysler and its attached liabilities. In turn, Cerberus invested $5 billion in Chrysler Holdings Inc., and an additional $1.05 billion in Chrysler's financial company. Cerberus then sent $1.35 billion to Daimler to complete to deal.The New York Times: Chrysler Group to Be Sold for $7.4 Billion (May 14, 2007)

• Bankruptcy

  On April 23, 2009, The New York Times reported that the U.S. Treasury is preparing a bankruptcy filing for Chrysler LLC. The Chapter 11 filing could come as early as the final week of April. The Treasury has assured the UAW that worker health benefits and pensions will be protected. Also, the alliance with Fiat is suppose to resume as Chysler goes through bankruptcy.Reuters: U.S. prepares bankruptcy filing for Chrysler: report (April 23, 2009)

  On April 24, 2009, 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.Reuters: Chrysler lenders make new debt restructuring offer

  On April 30, 2009, Bloomberg reported, citing an anonymous Obama administration official, that Chrysler would file Chapter 11 bankruptcy and 'reorganize.'Bloomberg.com: Chrysler Will File for Bankruptcy, Official Says (April 30, 2009) The news comes after a report that the Italian auto manufacturer FIAT was close to signing a partnership deal with struggling Chrysler. Reports say FIAT will take a 25 to 35 percent stake in the company in exchange for its small-car and engine technology, valued between $8 and $10 million. Additionally, FIAT CEO Sergio Marchionne will likely replace current Chrysler CEO Robert Nardelli as the head of the company.Associated Press: Fiat to sign Chrysler partnership deal (April 29, 2009)

• Related Mahalo Pages

  Cars | DaimlerChrysler | Dodge | Mercedes-Benz | Dodge | Chrysler 300 | Chrysler ecoVoyager | Chrysler 300 SRT8 | Car Czar | TARP | Peapod Car

• Fiat Buyout

  Italian automaker Fiat has issued a June 15, 2009 deadline to complete their acquisition of Chrysler. According to Fox News, "Fiat warned that the deal will terminate if it does not close by June 15. While a new agreement could be negotiated, there's no guarantee that one will be reached or that Chrysler will be able to be jump start its operations after the deadline." Fox News: Bankruptcy Judge Says Chrysler Can Terminate 789 Dealers' Franchises (June 9, 2009)

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