Chrysler drives on with Fiat at wheel
12 May 2009,
A MERGER with Fiat and a $9 billion bail out by the US Treasury has saved car manufacturer Chrysler from liquidation.
It’s good news for Gold Coast dealership Frizelles, whose sales have been driven by a dream run with its marquee 300C, Voyager and Crossfire models.
While staff at Frizelles declined to comment, the CEO of Fiat Group Sergio Marchionne, has hailed the move as the next chapter in Chrysler’s legacy.
“This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole,” says Marchionne.
“I believe Chrysler can meet the challenges posed by today’s difficult market conditions by tapping back into its innovative spirit, by focusing on quality as a cornerstone of its product offering and by listening to its customers and delivering the cars they want. It is a model we have strictly adhered to in the past few years at Fiat, and one I believe we can adapt here to write the next chapter in Chrysler’s legacy.”
The merger will be implemented through an expedited sale of substantially all the assets of Chrysler to a new company pursuant to certain provisions of the US Bankruptcy Code. Chrysler will request the bankruptcy court in New York to approve the sale of Chrysler’s business to a new company.
Fiat will have right to receive up to an additional 15 per cent equity interest (by vote and value) on a fully diluted basis and will also have the right to appoint another director of Chrysler.