Chrysler and Fiat announced June 10 that the two automakers have finalized their strategic alliance, forming Chrysler Group LLC to be headed by Fiat's CEO Sergio Marchionne. Marchionne is a lawyer with both Canadian and Italian citizenship. Robert Kidder, an engineer and a former CEO of battery maker Duracell and consultant to Ford, is to be named chairman.
The US Supreme court rejected appeals filed by three Indiana pension funds, a coalition of consumer groups, and a few individuals, to block Chrysler's sale on June 9.
The U.S. General Services Administration is one step closer to fulfilling its responsibilities outlined in President Obama’s economic recovery legislation. On June 1, 2009, the agency ordered 14,105 fuel efficient vehicles for the Federal fleet using $210 million of funds from the American Recovery and Reinvestment Act (ARRA).
GM is near agreements to sell its Saturn division and to help finance the buyout of bankrupt auto-parts supplier Delphi Corp., according to reports Friday in The Wall Street Journal. Reports say GM has inked a preliminary deal to sell off Saturn to major auto dealer and racing icon Roger Penske.
Automakers Make Case for Closings
The U.S. Senate Committee on Commerce, Science and Transportation held a hearing to review “GM and Chrysler Closures: Protecting Dealers and Consumers.” Sen. Jay Rockefeller, D-W.Va., chairman, opened the hearing defending automobile dealers against the dealership closures by automakers.
The top executives of GM and Chrysler have said that dealership closings are justified, as they try to overcome bankruptcy and survive. The executives acknowledged that cutting dealerships was causing pain around the country in front of the Senate Commerce committee on June 3.
THE PRESIDENT: Good morning, everybody. Just over two months ago, I spoke with you in this same spot about the challenges facing our auto industry, and I laid out what needed to be done to save two of America's most storied automakers -- General Motors and Chrysler. These companies were facing a crisis decades in the making, and having relied on loans from the previous administration, were asking for more.
Eight Chrysler plants now seem likely to be closed down entirely. In addition to plants in south St. Louis, Missouri and Newark, Deleware that are already idle, the following 6 North American plants are in danger: