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

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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

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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

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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

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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

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Those looking for a new car are avoiding driving up to a car dealership and February auto sales, which were down to their lowest level in 40 years, is a perfect example. No surprise that the Detroit Big Three were down last month. General Motors reported the largest drop at 52.9 percent followed by Ford Motor Company at 48.4 percent. Chrysler rounded out the list with a drop of 44 percent.

American automakers are not the only ones struggling at the moment, Japanese companies also reported a significant drop in February 2009 sales with Toyota reporting a 39.8 percent followed by Honda at 38 percent. Nissan Motors reported an overall decrease of 37 percent.

Amazingly Subaru and Kia reported a gain of 1.4 percent and 0.4 percent respectively, while Hyundai reported a drop of 1.5 percent. Things have got to turn around soon.

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General Motors was slated to present its viability plan to Congress a little later today, but U.S. government officials have granted GM an additional $4 billion in government aid ahead of its Congressional hearing.

GM has already received $9.4 billion in government funding since the start of the year, with the additional $4 billion allowing the Detroit automaker to keep its operations up and running.

Chrysler, is also seeking another $3 billion in government loans, but the White House aide told Automotive News that its request will be handled as a separate matter.

General Motors and the UAW negotiated well into the night on Monday, with the discussion of further labor cost cuts in order to keep its $13.4 billion in emergency government loans, If GM doesn’t bring its labor costs in line with foreign transplants, 100-year-old automaker could face bankruptcy.

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