QD Autos

It is being expected that Sergio Marchionne, the Fiat boss will be the new chief executive of the Chrysler, as the new company has been developed after a judge’s approval for the most of its assets.

Because of the declining sales and worldwide economic slowdown, Chrysler, which was one of the three biggest Detroit automakers, was the first company that fell into bankruptcy.  The new formed company is expected to take a name of Chrysler Group LLC and Fiat that has owned its 20% stake would be the looked after by its boss Sergio Marchionne. The company failed to fulfill the agreements with its bondholders and it failed it had to file a bankruptcy on April 30.

The newly formed company is going to get a technical infusion from Fiat that also include more efficient powertrains that will prove quite effective to increase in standards 35.5mpg federal mileage and that’s going to take effect model year 2016.

For the current auto industry this bankruptcy stay from Chrysler was quite historic and many auto communities across the US were really stunned when its factories began to shut even during the proceedings of the court.

This approval from Chrysler came just few hours before when its rival GM filed for bankruptcy in New York.

According to the White House, this case would be a hopeful example for the General Motors.

Robert Nardelli, Chrysler CEO is stepping down after this announcement of the deal and according to him; this sale would pave a better way for the company’s new beginning.

“ With Fiat, Chrysler would definitely emerge as a vigorous new company and they will soon begin their operations with great strategic advantages and hard work,” he adds.

Source: editorial.autos.msn

Tags: bankruptcy, chrysler, general motors, GM filed for bankruptcy, worldwide economic slowdown

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