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Chrysler Completes Sale of Assets to Fiat After Supreme Court Lifts Stay

06/10/2009
Chrysler LLC has completed a sale of most of its assets to Italian automaker Fiat SpA, according to CNN.com. The transaction was cleared after the U.S. Supreme Court declined to rule on an objection placed by three Indiana state funds that held Chrysler debt; the rejection of the ruling lifted a temporary stay of the sale. CNN reports that the new company will be called Chrysler Group LLC and that Sergio Marchionne, Fiat's CEO, will be CEO. "This is a very significant day ... for the global automotive industry as a whole," says Marchionne, quoted on CNN.com. "From the very beginning, we have been adamant that this alliance must be a constructive and important step towards solving the problems impacting our industry." Under the agreement with Fiat, a union retiree trust through the United Auto Workers will own 55 percent of Chrysler Group LLC; Fiat will own 20 percent that could eventually grow to 35 percent; the U.S. government will own 8 percent; and the Canadian government will own 2 percent. Marchionne tells CNN that the Chrysler plants that were shut down during the bankruptcy will be up and running soon, and that the company will focus on developing fuel-efficient vehicles that "will become Chrysler's hallmark going forward."

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