Chrysler’s dealers must feel like they can’t catch a break. Low inventory levels along with a lack of new vehicles, nearly 150 dealers haven’t been able to finalize floorplan financing. Since Chrysler Financial no longer exists with the dealer networks, GMAC has stepped in, but to no avail dealers are having a hard time meeting its terms. 85 dealers have been turned down completely, while another 60 or so are trying to secure financing.

GMAC has been asking for more collateral and they are looking for the dealer to alter the lending structure of their mortgages, held by Chrysler Financial. This has begun to send rumors that the Chrysler Financial Group is trying to wind down its operations.

Should the number of dealers fall, this means that the planned closers would be nearly reach 1000, up from its original 789 announced earlier this year.

Photo: AP News

If you enjoyed this post, feel free to subscribes to our rss feeds

Since Chrysler has officially inked a strategic alliance with Fiat, the new lineup is starting to come into focus. We were already understand that vehicles like the Fiat 500 and Panda were headed our way, but new reports seems to outline all the new vehicles Chrysler-Fiat has planned. …click here to read more

If you enjoyed this post, feel free to subscribes to our rss feeds

Ford Motor Company’s Bill Ford told CNBC that the supplier base was saved from collapse by the U.S. government and their loans to Chrysler LLC and General Motors. Ford said that the loans to the two automakers received directly helped suppliers pay their bills.

“It would have been so catastrophic to have a supply-base meltdown because it would have brought down all the auto manufacturers and frankly some other industries as well,” Ford said. Ford went on to praise President Obama’s auto task force and their ability to quickly figure out the dynamics of the auto industry. …click here to read more

If you enjoyed this post, feel free to subscribes to our rss feeds

The Supreme Court has approved the U.S. government-backed sale of Chrysler to a group led by Italian carmaker Fiat SpA, a victory for the bankrupt automaker and the Obama administration. The high court rejected a request from Indiana pension funds and others of the transaction to delay the deal while they challenge the sale to a group led by Fiat, a union-aligned trust and the U.S. and Canadian governments.

The Chrysler case has been widely regarded as a model for General Motors, which also is using a similar quick-sale strategy in its bankruptcy in New York. Chrysler and the Obama administration urged the Supreme Court to allow the sale to go forward and said a long delay could kill the deal, resulting in the automaker’s liquidation and the loss of more than 38,000 jobs.

They cited Chrysler’s worsening financial situation, with $100-million-a-day losses. The sale agreement sets a June 15 deadline to close.

If you enjoyed this post, feel free to subscribes to our rss feeds

Chrysler LLC has been scrutinized the past few years by disappearing global auto sales long with the credit crisis, filed for bankruptcy on today and announced an industry-changing deal with Fiat after talks to restructure its debt broke down.

Chrysler failed to gain the support from lenders to avoid the first-ever bankruptcy filing by a major U.S. automaker. This move was hailed by President Barack Obama as a crucial step to save over 30,000 jobs at Chrysler along with hundreds of thousands more jobs at affiliated suppliers and dealers.

The automaker as expected will enter into an alliance with Italian automaker Fiat where it sold a stake starting at 20 percent and in which Fiat can become the majority owner once the government loans are repaid. …click here to read more

If you enjoyed this post, feel free to subscribes to our rss feeds

The U.S. has reached agreement with banks on terms to reduce debt of Chrysler LLC, according to a person with knowledge of the negotiations.

The banks’ representatives allegedly has agreed to forgo $6.9 billion in debt in return for $2 billion in cash, said the person, who declined to be identified discussing the private talks. The deal is one of the steps Chrysler needed to avoid a bankruptcy after April 30.

Bankruptcy remains a possibility for Chrysler, the person said. All 46 banks involved need to ratify the terms, and it isn’t likely that all would, the person said. In that case, a quick, surgical type of bankruptcy may be needed to bring any dissenting banks into an agreement, the person said.

Chrysler, operating with $4 billion in U.S. loans, faces an April 30 deadline to restructure its costs or risk losing government support. Shawn Morgan, a Chrysler spokeswoman, declined to comment.
Via: Bloomberg

If you enjoyed this post, feel free to subscribes to our rss feeds

General Motors CEO Rick Wagoner announced his resignation earlier today, the latest change for the troubled automaker. Wagoner is being replaced by GM’s president and chief operating officer, Fritz Henderson. Kent Kresa will serve as interim chairman. …click here to read more

If you enjoyed this post, feel free to subscribes to our rss feeds