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Chrysler Chapter 11 reorganization

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U.S. and Canadian government as minority stakeholders. Secured bondholders would receive 29 cents on the dollar for their claims. The sale was appealed to the New York circuit court, which affirmed the sale on June 5, 2009. The dissident Indiana pension plan bondholders appealed again to the U.S. Supreme Court to block the sale. The U.S. 2nd circuit appeals court stayed its decision, pending a response from the Supreme Court, until 4 pm, June 8, 2009.
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U.S. Supreme, found any fault whatsoever with the handling of this matter by either Chrysler or the U.S. government." The proposed sale of assets is scheduled to close on Wednesday, June 10, 2009, when the money to finance the deal is wired by the government. Fiat will receive equity in the New Chrysler through its contribution of automobile platforms as a base for a new line of Chrysler cars.
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Ginsburg or the Supreme Court. Fiat had the right to withdraw from the deal if it does not close by June 15; however, the head of Fiat said it "would never walk away" from the Chrysler deal, even if it did not close by June 15. According to U.S. government lawyers, Fiat walking away would leave Chrysler without a viable purchase plan and result in a likely liquidation.
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holding US$ 300 million of a total US$ 6.9 billion of secured debt in Chrysler argued that proposed sale procedures preclude other potential bidders. The plan is for several major Chrysler assets to be sold to a new entity jointly owned by the United Automobile Workers Union health care trust fund, Fiat, and the United States and Canadian governments.
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filing, Chrysler had received US$ 4.5 billion in financing from the U.S. government, under a George W. Bush administration plan, in December 2008, after Congress declined to approve legislation to provide federal loans. Between 2007 and 2012, Chrysler benefitted from $ 1.39 billion in local tax incentives.
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According to the two-page decision and order, the Indiana funds "have not carried the burden" of demonstrating that the Supreme Court needed to intervene. The U.S. Department of the Treasury issued a statement saying: "We are gratified that not a single court that reviewed this matter, including the
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of law. The funds include teachers and police officers funds, holding about $ 42.5 million in face value of Chrysler's $ 6.9 billion (~$ 9.53 billion in 2023) in secured debt; the secured debt has priority for repayment. Holders of 92 percent of that class of debt agreed to a proposed government
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On Sunday, May 31, 2009, bankruptcy Judge Arthur J. Gonzalez approved a proposed plan, rejecting more than 300 filed objections to the sale. The sale allows of most of the assets of Chrysler to be purchased by new entity in which Fiat would own 20%, the autoworker's union retirement health care trust
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approved six motions at a May 1 hearing. At the next hearing on May 4, attorneys were expected to ask Gonzalez for permission to use the $ 4.5 billion the company had already received from the U.S. and Canadian governments to let the company continue operations. Also expected at the same hearing was
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issued a statement saying: "We are gratified that not a single court that reviewed this matter, including the U.S. Supreme, found any fault whatsoever with the handling of this matter by either Chrysler or the U.S. government." The proposed sale of assets is scheduled to close on June 10, 2009, when
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for between US$ 3 billion to US$ 3.5 billion, and upon a completion of Chrysler bankruptcy restructuring and court proceedings, the company would be eligible to receive up to US$ 4.5 billion in financing to resume operations, for total of US$ 8 billion of government support. Prior to the bankruptcy
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However, Fiat had warned that there would be no agreement if Chrysler failed to reach an agreement with the UAW and the Canadian Auto Workers' Union. On April 26, 2009, it appeared as if Chrysler had reached a deal with the unions which would meet federal requirements, though details were not made
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approved a proposed government restructuring plan and sale of Chrysler's assets. The sale allows most of the assets of Chrysler to be purchased by a new entity in which Fiat would own 20%, and the autoworker's union retirement health care trust (voluntary benefit association "VEBA") 55%, with the
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On June 8, 2009, Supreme Court Associate Justice Ruth Bader Ginsburg, who is assigned to emergency motions arising from the United States Appeals Court for the Second Circuit, in a one-sentence order, stayed the orders of the bankruptcy judge allowing the sale, pending further order by Justice
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In a setback to the arguments of hold-out creditors, primarily made up of investment firms, Judge Gonzalez on May 5, 2009 approved proposed bidding procedures that would likely lead to Chrysler's sale of assets to an entity in which Fiat is a major owner. The lawyer for the dissident creditors
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Both the White House and Chrysler expressed hope for a "surgical" bankruptcy lasting 30 to 60 days, with the result of reducing the company's liabilities and post-bankruptcy emergence in stronger financial shape. The submitted court documents indicated that there would be a reorganization plan
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car company and 24 of its affiliated subsidiaries with the federal bankruptcy court in New York. The court filing occurred upon failure of the company to come to an agreement with its creditors for an outside-of-bankruptcy restructuring plan, by the April 30 deadline mandated by the federal
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announced that they had a non-binding term sheet to form a global alliance. Under the terms of the potential agreement, Fiat could take a 35% stake in Chrysler and gain access to its North American dealer network in exchange for providing Chrysler with the platform to build smaller, more
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The bankruptcy filing and related documents submitted by Chrysler to the United States Bankruptcy Court of the Southern District of New York. On page 4 and 5 of the bankruptcy petition, the list of subsidiaries was included with the consolidated petition:
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By mid-April, as talks intensified between the two automakers to reach an agreement by a government-imposed deadline of April 30, Fiat's proposed initial stake was reported to be 20% with some influence on the structure of top management of the company.
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Chrysler announced on the day of the bankruptcy filing that during the restructuring it would cease most manufacturing operations on May 4, 2009, and resume production "when the transaction is completed, which is anticipated within 30 to 60 days."
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The federal appeals court on June 5, 2009 affirmed the decision to approve the sale of its assets, and gave objecting bondholders until Monday June 8, 2009 to obtain a stay of the re-affirmed decision permitting the sale to be completed.
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Chrysler attorneys said eight of the company's factories, including five with a total of 4800 employees closing in 2010, would not be part of the Fiat deal. The company also announced the retirement of president and vice chairman
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The transfer does not include eight manufacturing locations, nor many parcels of real estate, nor equipment leases. Contracts with 789 U.S. auto dealerships, which are being dropped, were not transferred.
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The transfer did not include eight manufacturing locations, nor many parcels of real estate, nor equipment leases. Contracts with 789 U.S. auto dealerships, that were being dropped, were not transferred.
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the money to finance the deal is wired by the government. Fiat will receive equity in the New Chrysler through its contribution of automobile platforms as a base for a new line of Chrysler cars.
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available. Chrysler said the union agreement "provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U.S. Treasury Department."
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On June 9, 2009, the Supreme Court published its denial of the applications for a stay of the sale from the three Indiana funds, allowing the sale of assets to "New Chrysler" to proceed.
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On June 9, 2009, the Supreme Court published its denial of the applications for a stay of the sale from the three Indiana funds, allowing the sale of assets to "New Chrysler" to proceed.
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was completed. The federal government financed the deal with US$ 6.6 billion in financing, paid to the "Old Chrysler", formerly named Chrysler LLC and now currently named Old Carco LLC.
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was completed. The federal government financed the deal with US$ 6.6 billion in financing, paid to the "Old Chrysler", formerly known as Chrysler LLC and currently named Old Carco LLC.
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A group of dissident Indiana pension fund secured bondholders immediately appealed Gonzalez's decision, to the 2nd Circuit Court of Appeals in New York; the appeal is known as
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a request for a date to sell assets to "new Chrysler." No other bids were expected, but documents showed attempts at deals with dozens of companies, including
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According to the two-page decision and order, the Indiana funds "have not carried the burden" of demonstrating that the Supreme Court needed to intervene. The
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that would exchange debt for a value of 29 cents on the dollar. The Indiana funds obtained their bonds in July 2008 at 43 cents per the dollar of face value.
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On May 14, 2009 Chrysler filed with the bankruptcy court to terminate the dealership agreements of 789, or about 25% of its dealerships.
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plant were already closed and should not be sold to Fiat. Work from the Detroit axle plant, also not part of the Fiat deal, was moving to
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which had contributed the Chapter 11 reorganisation. At the time, Chrysler was controlled by the private investment company,
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presented to the court in 120 days, on August 28, 2009. A White House official indicated that the government would provide
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A new company will be formed to acquire the assets of Chrysler, which will be known as New CarCo Acquisition LLC.
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fuel-efficient vehicles in the U.S. and a reciprocal access to Fiat's global distribution network.
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On June 10, 2009, the sale of most of Chrysler assets to "New Chrysler", formally known as
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On June 10, 2009, the sale of most of Chrysler assets to "New Chrysler", formally known as
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Please help update this article to reflect recent events or newly available information.
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operated until May 10, 2009, when it was shut down, affecting 300 employees.
926:"Obama Administration Auto Restructuring Initiative; Chrysler-Fiat Alliance" 261: 238: 1237: 2490: 1268: 164: 109:, which, along with other investors, purchased a majority stake in 2007. 94: 36: 451: 1444: 1420: 1319: 744:. Supreme Court of the United States Supreme Court (via New York Times) 242: 234: 1380: 790: 788: 301: 954: 952: 728: 726: 2052: 1524: 1468: 1346: 305: 1351: 942: 413: 198: 160: 2475:
List of banks acquired or bankrupted during the Great Recession
2309: 2056: 1241: 761: 759: 1529: 797:"Fiat Said to Buy Chrysler Assets Today to Form New Automaker" 44: 768:"Swift Overhaul Moves Ahead as Fiat Acquires Chrysler Assets" 529:
Chrysler Service Contracts Florida, Inc. Case No.: 09-50012
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de la Mercel, Michael; Micheline Maynard (June 10, 2009).
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Chrysler Technologies Middle East Ltd. Case No.: 09-50014
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Dodd–Frank Wall Street Reform and Consumer Protection Act
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de la Merced, Michael; Jonathan D. Glater (May 5, 2009).
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Chrysler International Services, S.A. Case No.: 09-50010
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Chrysler and Union Agree to Deal Before Federal Deadline
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Chrysler International Limited, LLC Case No.: 09-50009
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National fiscal policy response to the Great Recession
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Chrysler International Corporation Case No.: 09-50008
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Chrysler Dutch Operating Group LLC Case No.: 09-50006
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in a manner that is contrary to that called for under
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Chrysler Institute of Engineering Case No.: 09-50007
823:"Fiat deal could give Chrysler small-car technology" 197:, on April 30, 2009, and announced an alliance with 2597: 2555: 2512: 2483: 2465: 2404: 2379: 2316: 2234: 2181: 2145: 2090: 1989: 1916: 1885: 1837: 1797: 1781: 1772: 1756: 1678: 1659: 1650: 1615: 1548: 1517: 1508: 1365: 1334: 1327: 1275: 627: 625: 623: 621: 527:Chrysler Service Contracts Inc. Case No.: 09-50013 2571:(Europe, Middle East and North Africa, Asia; 2009) 1190:Savage, David G.; Jim Puzzanghera (June 8, 2009). 541:Global Electric Motorcars, LLC Case No.: 09-50019 408:Initially, the percentages of equity ownership in 193:protection at the Federal Bankruptcy Court of the 1893:Chrysler World Headquarters and Technology Center 511:Chrysler Dutch Investment LLC Case No.: 09-50005 125:On June 8, 2009, Supreme Court Associate Justice 1192:"Chrysler sale to Fiat stalled by Supreme Court" 1039: 1037: 924:Office of the Press Secretary (April 30, 2009). 601:"Appeals Court Refuses to Block Chrysler's Sale" 1072:"Dealbook: A Road Map to a Chrysler Bankruptcy" 795:Forden, Sara Gay; Mike Ramsey (June 10, 2009). 665:"Supreme Court Delays Sale of Chrysler to Fiat" 525:Chrysler Realty Company LLC Case No.: 09-50000 260:plant, the Detroit Conner Avenue plant and the 2422:American Recovery and Reinvestment Act of 2009 2287:Office of Federal Housing Enterprise Oversight 509:Chrysler Dutch Holding LLC Case No.: 09-50004 347:Indiana State Police Pension Trust v. Chrysler 2068: 1789:United States Council for Automotive Research 1623:Chrysler First Financial Services Corporation 1253: 225:On May 1, the two assembly plants in Canada, 8: 2346:Emergency Economic Stabilization Act of 2008 633:"Supreme Court Asked to Block Chrysler Deal" 1070:de la Merced, Michael J. (April 30, 2009). 961:"'Surgical' Bankruptcy Is Set for Chrysler" 883:, April 26, 2009. Retrieved April 27, 2009. 543:NEV Mobile Service, LLC Case No.: 09-50020 533:Chrysler Transport Inc. Case No.: 09-50015 2480: 2437:Fraud Enforcement and Recovery Act of 2009 2376: 2361:Term Asset-Backed Securities Loan Facility 2306: 2075: 2061: 2053: 1778: 1656: 1514: 1331: 1260: 1246: 1238: 1098:"Plan to Sell Chrysler to Fiat Clears Bar" 507:Chrysler Aviation Inc. Case No.: 09-50003 117:On Sunday, May 31, 2009, bankruptcy judge 2617:Effects of the Great Recession on museums 2447:Housing and Economic Recovery Act of 2008 2331:China–Japan–South Korea trilateral summit 704:de la Merced, Michael J. (June 9, 2009). 2311:Government policy and spending responses 2277:Government National Mortgage Association 1122:Sorkin, Andrew Ross, ed. (May 6, 2009). 663:de la MERCED, Michael J (June 8, 2009). 599:de la MERCED, Michael J (June 5, 2009). 539:Dealer Capital, Inc. Case No.: 09-50018 426:General Motors Chapter 11 reorganization 264:North plant would close, along with the 2371:2008 United Kingdom bank rescue package 553:Utility Assets LLC Case No.: 09-50024 547:Peapod Mobility LLC Case No.: 09-50001 523:Chrysler Motors LLC Case No.: 09-50011 441: 431:Automotive industry crisis of 2008–2010 103:automotive industry crisis of 2008–2010 33:Automotive industry crisis of 2008–2010 1014:"UNITED STATES OF SUBSIDIES, Chrysler" 2356:Temporary Liquidity Guarantee Program 2326:Banking (Special Provisions) Act 2008 2247:Federal Deposit Insurance Corporation 1216:Globe Wire Services (June 11, 2009). 1148:Valdes-Dapena, Peter (May 14, 2009). 535:Chrysler Vans LLC Case No.: 09-50016 452:Epiq Systems – Chrysler Restructuring 155:Pre-bankruptcy negotiations with Fiat 7: 2681:Great Recession in the United States 2242:Consumer Financial Protection Bureau 2037: 1218:"Fiat seals deal for Chrysler stake" 893:Gupta, Poornima (February 9, 2009). 545:NEV Service, LLC Case No.: 09-50021 2532:Collateralized mortgage obligations 1815:DaimlerChrysler–Mitsubishi alliance 566:"Chrysler's friends in high places" 1693:DaimlerChrysler Motors Company LLC 1150:"Chrysler closing 789 dealerships" 959:Maynard, Micheline (May 1, 2009). 825:. Associated Press. Archived from 564:Story, Louise (December 5, 2008). 549:TPF Asset, LLC Case No.: 09-50022 349:. The plaintiffs claimed that the 87:Chrysler Chapter 11 reorganization 25: 2627:2007–2008 world food price crisis 2427:Chinese economic stimulus program 2412:2008 European Union stimulus plan 2336:Commercial Paper Funding Facility 1903:Highland Park Headquarters Campus 821:Krisher, Tom (January 20, 2009). 551:TPF Note, LLC Case No.: 09-50023 537:DCC 929, Inc. Case No.: 09-50017 503:Chrysler LLC Case No.: 09-50002 320:Procedure to sell assets approved 2655:List of countries by public debt 2282:National Asset Management Agency 2036: 2027: 2026: 2014:Commercial Utility Cargo Vehicle 1318: 639:. Associated Press. June 6, 2009 275:The St. Louis South plant and a 49: 2610:2008 Central Asia energy crisis 2527:Collateralized debt obligations 1171:Interview With Richard Mourdock 851:Kim, Soyoung (April 13, 2009). 137:U.S. Department of the Treasury 2417:2008–2009 Keynesian resurgence 2262:Federal Housing Finance Agency 2257:Federal Housing Administration 207:debtor-in-possession financing 1: 2432:Economic Stimulus Act of 2008 2366:Troubled Asset Relief Program 2292:Office of Financial Stability 2267:Federal Housing Finance Board 2201:SociĂ©tĂ© GĂ©nĂ©rale trading loss 1047:. May 2, 2009. 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Rothstein 2002:Ford Motor Company 1717:Chrysler Group LLC 1440:(1955–75, 1981–83) 1128:The New York Times 1102:The New York Times 1076:The New York Times 1022:. December 1, 2012 1019:The New York Times 994:. December 1, 2012 991:The New York Times 965:The New York Times 881:The New York Times 772:The New York Times 710:The New York Times 669:The New York Times 637:The New York Times 605:The New York Times 570:The New York Times 488:The New York Times 394:Chrysler Group LLC 293:Arthur J. Gonzalez 270:Kenosha, Wisconsin 233:, both located in 145:Chrysler Group LLC 119:Arthur J. Gonzalez 2663: 2662: 2632:Retail apocalypse 2577:(MENA; 2010–2012) 2508: 2507: 2504: 2503: 2400: 2399: 2380:Bank stress tests 2050: 2049: 1872:Sergio Marchionne 1867:Thomas W. 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topics 1987: 1986: 1984: 1983: 1978: 1973: 1972: 1971: 1966: 1961: 1956: 1951: 1946: 1941: 1936: 1931: 1920: 1918: 1914: 1913: 1911: 1910: 1905: 1900: 1895: 1889: 1887: 1883: 1882: 1880: 1879: 1874: 1869: 1864: 1859: 1854: 1849: 1843: 1841: 1835: 1834: 1831: 1830: 1828: 1827: 1822: 1817: 1812: 1807: 1801: 1799: 1795: 1794: 1792: 1791: 1785: 1783: 1776: 1770: 1769: 1767: 1766: 1760: 1758: 1754: 1753: 1750: 1749: 1747: 1746: 1734: 1729:Chrysler Group 1722: 1710: 1698: 1689:(Daimler-Benz) 1682: 1680: 1676: 1675: 1673: 1672: 1670:(2021–present) 1663: 1661: 1654: 1648: 1647: 1644: 1643: 1641: 1640: 1635: 1630: 1625: 1619: 1617: 1613: 1612: 1610: 1609: 1601: 1593: 1585: 1577: 1569: 1561: 1552: 1550: 1546: 1545: 1543: 1542: 1537: 1532: 1527: 1521: 1519: 1512: 1509:Divisions and 1506: 1505: 1502: 1501: 1499: 1498: 1490: 1482: 1474: 1466: 1458: 1450: 1442: 1434: 1426: 1418: 1410: 1402: 1394: 1386: 1378: 1369: 1367: 1363: 1362: 1360: 1359: 1354: 1349: 1344: 1338: 1336: 1329: 1325: 1324: 1317: 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CNN Money 836:January 20, 371:due process 251:Tom LaSorda 161:Fiat S.p.A. 70:August 2019 2670:Categories 1667:Stellantis 1604:Jeep-Eagle 1283:Stellantis 437:References 310:Volkswagen 91:bankruptcy 27:See also: 2194:Tom Hayes 2091:By region 1997:Big Three 1976:Platforms 1959:PowerTech 1949:Pentastar 1898:Factories 1744:(2014–21) 1732:(2011–14) 1720:(2009–11) 1708:(2007–09) 1653:companies 1607:(1987–97) 1599:(2007–09) 1591:(1970–81) 1583:(1967–81) 1575:(1951–81) 1572:Australia 1567:(1959–79) 1564:Argentina 1559:(1954–88) 1496:(1960–66) 1488:(1901–76) 1480:(2013–14) 1472:(1934–77) 1464:(1905–70) 1448:(1908–77) 1432:(1898–75) 1424:(1907–76) 1416:(1920–72) 1408:(1988–98) 1400:(1928–61) 1392:(1959–78) 1389:Barreiros 1384:(1905–79) 1376:(1986–88) 862:April 30, 801:Bloomberg 262:St. Louis 239:Etobicoke 2676:Chrysler 2491:Chrysler 2103:Americas 2032:Category 1917:Products 1857:Bob Lutz 1453:Plymouth 1437:Imperial 1342:Chrysler 1286:(parent) 1227:June 11, 1174:Archived 806:June 10, 777:June 10, 455:Archived 420:See also 95:Chrysler 37:Chrysler 2137:Oceania 2130:Iceland 2042:Commons 1964:SOHC V6 1924:Engines 1782:Current 1660:Current 1549:Defunct 1518:Current 1493:Valiant 1485:Sunbeam 1445:Karrier 1421:Hillman 1366:Defunct 1335:Current 1328:Marques 1291:History 1276:General 1201:June 9, 1156:May 16, 1026:May 29, 998:May 29, 899:Reuters 857:Reuters 748:June 9, 715:June 9, 674:June 8, 643:June 7, 610:June 7, 243:Toronto 235:Ontario 60:updated 2125:Europe 2098:Africa 1886:Places 1839:People 1798:Former 1679:Former 1651:Parent 1616:Former 1580:Europe 1461:Singer 1429:Humber 1397:DeSoto 1381:Commer 1133:May 6, 1107:May 6, 1081:May 5, 1055:May 2, 970:May 1, 937:May 5, 909:May 1, 575:May 3, 494:May 1, 302:Toyota 39:, and 1805:Askam 1525:Mopar 1469:Simca 1413:Fargo 1405:Eagle 1347:Dodge 830:(URL) 738:(PDF) 484:(PDF) 412:are: 306:Honda 2392:U.S. 2120:Asia 1944:Hemi 1596:Envi 1352:Jeep 1229:2009 1203:2009 1158:2009 1135:2009 1109:2009 1083:2009 1057:2009 1028:2016 1000:2016 972:2009 939:2009 911:2009 864:2009 838:2009 808:2009 779:2009 750:2009 717:2009 676:2009 645:2009 612:2009 577:2009 496:2009 414:Fiat 312:and 229:and 199:Fiat 163:and 1969:WGE 1739:of 1727:of 1715:of 1703:of 1691:of 1556:AMC 1535:SRT 1530:R/T 1477:SRT 1373:AMC 1357:Ram 2672:: 2387:EU 1939:LH 1588:UK 1220:. 1194:. 1126:. 1100:. 1074:. 1036:^ 1016:. 988:. 963:. 951:^ 928:. 897:. 879:. 855:. 799:. 787:^ 770:. 758:^ 740:. 725:^ 708:. 684:^ 667:. 653:^ 635:. 620:^ 603:. 585:^ 568:. 486:. 466:^ 444:^ 308:, 304:, 300:, 253:. 241:, 201:. 35:, 31:, 2076:e 2069:t 2062:v 1934:A 1261:e 1254:t 1247:v 1231:. 1205:. 1160:. 1137:. 1111:. 1085:. 1059:. 1030:. 1002:. 974:. 945:. 913:. 866:. 840:. 810:. 781:. 752:. 719:. 678:. 647:. 614:. 579:. 498:. 72:) 68:( 62:. 20:)

Index

Chrysler LLC bankruptcy
History of Chrysler
Automotive industry crisis of 2008–2010
Chrysler
Cerberus Capital Management
bankruptcy
Chrysler
automotive industry crisis of 2008–2010
Cerberus Capital Management
Arthur J. Gonzalez
Ruth Bader Ginsburg
U.S. Department of the Treasury
Chrysler Group LLC
Fiat S.p.A.
Chrysler LLC
chapter 11 bankruptcy
Southern District of New York
Fiat
debtor-in-possession financing
Brampton Assembly
Windsor Assembly
Ontario
Etobicoke
Toronto
Tom LaSorda
Sterling Heights, Michigan
St. Louis
Twinsburg, Ohio
Kenosha, Wisconsin
Newark, Delaware

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