Chrysler Files Bankruptcy, Merger Ahead

The nation's third-largest car maker filed for bankruptcy on Thursday, but it plans to eventually merge with Italian car maker Fiat to help it emerge as a viable business concern.

Chrysler will seek in court to strip itself of its overwhelming debts. Then, according to the administration plan, the company will get roughly $10 billion in new government aid and be merged with Italian automaker Fiat. The company is scheduled to appear this morning at 10 a.m. for its first hearing at the U.S. Bankrtuptcy Court in New York. - Washington Post

Some Chrysler dealers (franchisees) see a silver lining in the filing of bankruptcy. Doug Swaim, general manager at Star Chrysler Jeep in Glendale, California stated:

"It's like when there's a warning light on a customer's dashboard, and because they don't know what it means, they get a little nervous when it's usually something minor and insignificant," he said. "It's all for the better to get the mysteries and question marks behind us."

Jim Arrigo, owner of two Florida Chrysler dealerships and chairman of the national Chrysler dealer council, said that despite the bankruptcy filing, he remained "very optimistic." "Unfortunately some people out there in the banking industry have not come to table," Arrigo said. "They alone are responsible for us going into this. But as long as we come out the other side, that's all that matters." - - LA Times