At Glendale Chrysler Jeep & Dodge we want our customers to understand what is happening within our company. The recent events are great thing for Chrysler as a whole. We hope that this informative Question and Answer section makes things more clear for you.
General Questions
Q1: What does this new company mean to me as a Chrysler, Dodge or
Jeep customer ?
A1: The partnership with Fiat transforms Chrysler into a vibrant new company
with many strategic advantages. It enables Chrysler to better serve its
customers and dealers wit h a broader and more competitive line-up of
environmentally friendly, fuel-efficient high-quality vehicles.
Chrysler and its dealers will continue to sell and service vehicles and
honor warranties without interruption. Consumers can continue to
purchase our vehicles with complete confidence.
Q2: What is the ownership structure of the new company?
A2: When the transaction is completed, the Voluntary Employee Beneficiary
Association (VEBA) will own 55 percent of the new company and the U.S.
and Canadian governments will own proportionate shares of a 10 percent
stake. Fiat will initially own a 20 percent stake in Chrysler. Fiat will have
the right to increase its ownership stake an additional 15 percent in three
i ncr ements as it meets the following criteria: 5 percent for bringing a 40
mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for
providing a fuel-efficient engine family to be produced in the U.S. for use
i n Chr ysl er vehi cl es; and 5 per cent f or providing Chrysler access to its
vast global distribution network to facilitate the export of Chrysler vehicles.
Fiat cannot become a majority owner until all U.S. government loans have
been completely repaid.
Q3 What is a Chapter 11, section 363 bankruptcy?
A3: For the past several months, we have worked tirelessly to reach
agreement with key stakeholders on concessions that would allow
Chrysler to complete this alliance with Fiat and proceed with its plans
wit hout t he need f or a bankr upt cy pr oceedi ng. Despite substantial
progress on many fronts, Chrysler was not able to obtain the necessary
concessions from all of its lenders. As a result, under the direction of the
U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries
filed voluntary petitions under Chapter 11 of the U. S. Bankruptcy Code.
With this filing, we will also submit a motion under Section 363 of
the Bankruptcy Code, requesting the swift approval by the Court of the
agreement with Fiat and the sale of Chrysler’s principal assets to the new
company.
The benefit of this type of filing is speed. It should allow a leaner
new company to emerge in a matter of 30 to 60 days, well positioned for
long-term viability.
Chrysler’s Mexican, Canadian and other International operations
are not part of any bankruptcy filing.
Q4: Is Chrysler still an American car company?
A4: Chrysler's operations, as now, will remain primarily based in the U.S.,
employ tens of thousands of Americans directly and at the supplier and
dealer level, and will continue a proud tradition of American engineering
and manufacturing into the future.
If you have any other questions or concerns please send us an email at Customer Questions.
General Questions
Q1: What does this new company mean to me as a Chrysler, Dodge or
Jeep customer ?
A1: The partnership with Fiat transforms Chrysler into a vibrant new company
with many strategic advantages. It enables Chrysler to better serve its
customers and dealers wit h a broader and more competitive line-up of
environmentally friendly, fuel-efficient high-quality vehicles.
Chrysler and its dealers will continue to sell and service vehicles and
honor warranties without interruption. Consumers can continue to
purchase our vehicles with complete confidence.
Q2: What is the ownership structure of the new company?
A2: When the transaction is completed, the Voluntary Employee Beneficiary
Association (VEBA) will own 55 percent of the new company and the U.S.
and Canadian governments will own proportionate shares of a 10 percent
stake. Fiat will initially own a 20 percent stake in Chrysler. Fiat will have
the right to increase its ownership stake an additional 15 percent in three
i ncr ements as it meets the following criteria: 5 percent for bringing a 40
mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for
providing a fuel-efficient engine family to be produced in the U.S. for use
i n Chr ysl er vehi cl es; and 5 per cent f or providing Chrysler access to its
vast global distribution network to facilitate the export of Chrysler vehicles.
Fiat cannot become a majority owner until all U.S. government loans have
been completely repaid.
Q3 What is a Chapter 11, section 363 bankruptcy?
A3: For the past several months, we have worked tirelessly to reach
agreement with key stakeholders on concessions that would allow
Chrysler to complete this alliance with Fiat and proceed with its plans
wit hout t he need f or a bankr upt cy pr oceedi ng. Despite substantial
progress on many fronts, Chrysler was not able to obtain the necessary
concessions from all of its lenders. As a result, under the direction of the
U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries
filed voluntary petitions under Chapter 11 of the U. S. Bankruptcy Code.
With this filing, we will also submit a motion under Section 363 of
the Bankruptcy Code, requesting the swift approval by the Court of the
agreement with Fiat and the sale of Chrysler’s principal assets to the new
company.
The benefit of this type of filing is speed. It should allow a leaner
new company to emerge in a matter of 30 to 60 days, well positioned for
long-term viability.
Chrysler’s Mexican, Canadian and other International operations
are not part of any bankruptcy filing.
Q4: Is Chrysler still an American car company?
A4: Chrysler's operations, as now, will remain primarily based in the U.S.,
employ tens of thousands of Americans directly and at the supplier and
dealer level, and will continue a proud tradition of American engineering
and manufacturing into the future.
If you have any other questions or concerns please send us an email at Customer Questions.