Monday

Chrysler sale to Fiat blocked by the Supreme Court

Not all in well in Chrysler-land. Already reeling from bankruptcy, and eager to end it ASAP as they are losing $100 million a day, Chrysler’s deal with Fiat has now been blocked in court due to the demands of certain secured debt holders.

What makes this so serious is that Fiat has issued a June 15th deadline for completing the sale. Now, the deal with Fiat never made much sense to me in the first place, but the only alternative to dealing with Fiat is liquidating Chrysler.

Further, if this is successful, it could affect GM’s bankruptcy in a similar fashion. Their debt holders could go after a similar deal, complicating GM’s exit from Chapter 11 in a similarly negative fashion.

There’s only a week left so time will tell. These are unprecedented times in the US auto industry, and no matter how it shakes out the US automotive landscape will never look the same.

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