Chrysler has a new owner, Fiat, as AP reports:Italy's Fiat is the new owner of most of Chrysler's assets, closing a deal Wednesday that saves the troubled U.S. automaker from liquidation and places a new company in the hands of Fiat's CEO.
The deal clears the way for a new, leaner Chrysler Group LLC to emerge from bankruptcy protection minus billions in debt, 789 underperforming dealerships and burdensome labor costs that nearly sank the storied automaker.
Fiat CEO Sergio Marchionne immediately was named CEO of the new company, which said in a statement that it would soon reopen Chrysler factories that were idled during the bankruptcy process, costing the automaker $100 million per day.
The new company will focus on smaller vehicles, areas in which Chrysler was weak.
It's a shameful day for American business. The possibly politically-motivated closing of many Chrysler dealerships is part of it, but as bad as that is, the skipping of secured creditors in favor of the United Auto Workers union sends a horrible message to anyone who wants to invest here.
Ah, that's why Rush said that Chrysler didn't want this deal with Fiat.
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