Chrysler is to ask a court in New York for bankruptcy protection from its creditors .
US President Obama has explained why Chrysler will now be organised into a more viable carmaker. The White House described the move as a “surgical short bankruptcy which should last between 30 and 60 days.
Chrysler’s union,. the United Auto Workers, had already agreed last night on what they called “painful compromises” on pay and pensions.
In upbeat mood. President Obama explained how a restructured company would save tens of thousands of jobs, and will ultimately build less-polluting cars. President Obama made the following statement:-
“ I stand with Chrysler’s employees, their families and communities. I stand with Chrysler’s management, its dealers and suppliers. I stand with the millions of Americans who own and who want to buy Chrysler cars.
I don’t stand with those who held out while everybody else was making sacrifices. That’s why I’m supporting Chrysler’s plans to use our bankruptcy laws to clear away its remaining obligations, so the company can get back on its feet and on the path to success.”
President Obama said the way was now open for Italian carmaker Fiat to take a 20 percent stake in Chrysler, which could rise progressively to 51 percent…If all goes according to plan, Fiat will produce its first model with Chrysler in 2011.