Chrysler files for bankruptsy. The Chapter 11 filing, as it is popularly known as, will send shock waves across automobile markets, world-wide.
Fiat will pick up 20 % stake. Fiat had come out of a slump recently. Bold move, it will give Fiat access to North American market.
President Obama is confident of saving over 30,000 direct jobs and many more at suppliers/dealers, etc. A key factor in these tough times and a key deliverable for government.
The US government will provide up to $3.5 billion in debtor-in-possession (DIP) financing and up to $4.5 billion in exit financing.
As the world economy throws up not-so-encouraging statistics regarding its performance, sectors such as automobile will face the brunt of its impact. Tough times ahead…
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