I hear that GM will be making more vehicles in China and importing more to U.S. What's the upside of these Global Business shenanigans?
Fiat names top executives of new Chrysler
Financial Times
By Nicole Bullock in New York
Published: May 28 2009 05:54 | Last updated: May 28 2009 05:54
Fiat will name chief executive Sergio Marchionne, Alfredo Altavilla, its head of business development, and Lucio Noto, former vice-chairman of ExxonMobil to the board of a new Chrysler, Mr Altavilla said in court testimony late Wednesday.
He also said Mr Marchionne should be named chief executive and “spend a substantial amount of time in Detroit.”
Anger over German role in GM shake-out - May-27In depth
Mr Altavilla also said the deal that would create an alliance between the two carmakers could close a few days after a US bankruptcy court approves the proposed sale of most of Chrysler’s operations to a group including the US government, the United Autoworkers Union and Fiat.
Fiat would reconsider if the transaction does not close by June 15 or if the bankruptcy process does not free the Detroit automaker of liabilities like tort claims.
In marathon proceedings Wednesday, Judge Arthur Gonzalez began to hear objections, which numbered more than 300, but centered on the opposition of Chrysler’s dealers and secured lenders to the sale.
The plan calls for Chrysler to close nearly 800 dealerships and settle a $6.9bn secured loan with $2bn.
The hearing resumes Thursday and could run until Friday.
A group of Indiana pension funds object to the arrangement, arguing that it unlawfully subordinates their senior claim on assets and was wrongfully influenced by the US government. Banks who hold the bulk of the loans and who have agreed to the transaction received federal bailout funds.
Lawyers for Chrysler say the sale is necessary to avoid liquidation. Approval would mean Chrysler emerges from bankruptcy in roughly one month from its filing.
Mr Altavilla also testified that Fiat may not have proceeded with the deal if Chrysler had not filed for bankruptcy, regardless of whether all of the senior lenders signed off on the deal.
“We would have needed to reconsider…but more likely not,” Mr Altavilla said.