Washington -- A federal bankruptcy judge today approved the voting process for the former Chrysler LLC to liquidate its assets.
In New York, U.S. Bankruptcy Judge Arthur Gonzalez approved the 343-page disclosure statement filed by Chrysler LLC -- also known as Old Carco LLC -- in a written order.
He set a hearing to confirm the bankruptcy plan on March 16 after the company's debtors vote whether to approve it.
Chrysler's best assets were sold in a government-backed transaction to a group led by Fiat SpA in July after the government forced it into bankruptcy on April 30. The new company is called Chrysler Group LLC.
The United Auto Workers owns a majority stake in Chrysler, but doesn't have voting rights control over the automaker. Fiat's CEO Sergio Marchionne is also running Chrysler. The U.S. Treasury is unlikely to recover most of the $4 billion in loaned to Chrysler LLC under the Bush administration.
Chrysler LLC still faces objections from Michigan taxing authorities and the Michigan Department of Environmental Quality.
In an objection filed last week, the MDEQ says Old Carco must pay nearly $3 million for environmental clean-up costs, including $116,000 already spent by the state.
"Additional work needs to be done to address environmental conditions at several facilities, including, but not necessarily limited to the Trenton Engine Plant, Evart Products Facility, Chrysler Plymouth Road Office Center, and the former Chrysler Corporation Introl division facility in Dexter," Michigan said in a court filing.
MDEQ says it believes it will cost $2.8 million to finish cleanup at those sites. Old Carco LLC and Michigan are still in talks over the issue.
Chrysler's statement discloses some sales that Chrysler LLC has made to raise funds, including 71 robots from the Newark, Del. assembly plant., They were sold for $284,000.
The company sold a foundry in Indianapolis for $177,500 and property in Indiana for $295,000.
Old Carco also sold a property in Detroit at 20250 Mt. Elliot for $2,000, but it wasn't immediately clear what the property had been used for previously.
The largest transaction to date is Chrysler's sale of its Newark, Del., plant on 271 acres. The property was sold to the University of Delaware for $24.2 million in November.
Old Chrysler is also selling off 7,600 company cars to raise funds.
Chrysler Group LLC agreed to buy 5,000 of the cars for $91.2 million -- or roughly $17,500 each. Another nearly 2,600 cars remain to be sold.
Old Carco has also decided to abandon property it deems to have no value or is in separate bankruptcy proceedings, including Action Chrysler Jeep Dodge Inc.; Chrysler de Venezuela S.A.; Chrysler Motors de Venezuela S.A.; Des Plaines Chrysler Jeep Dodge Inc.; Grapevine Chrysler Jeep Dodge Inc.; Lone Star Chrysler Jeep Dodge Inc.; Long Beach Chrysler-Jeep Inc.; and South Charlotte Chrysler Jeep Dodge Inc.
__________________
Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
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Auburn Hills, Mich. , Jan 28, 2010 - Chrysler Group LLC is going forward with the arbitration process mandated by House of Representatives Bill 3288, Section 747. The company looks forward to the expeditious completion of the process. A robust dealer network is a critical component of the Group’s strategy of rebuilding a strong and resilient American automaker.
409 dealers whose contracts were rejected have filed for arbitration as of Wednesday, January 27 and Chrysler is readying itself to actively participate in the arbitration process.
__________________
Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
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A Cleveland-based consortium has made a $27.5 billion bid for Chrysler's Twinsburg, Ohio, stamping plant, which is among the bankrupt assets held by Old Carco LLC.
A series of bankruptcy documents filed this week identify the buyer as Twinsburg Industrial Park LLC, which entered into a purchase agreement Feb. 12. The court approved.
The industrial group solidified its intent to buy the 2-million-square-foot plant and equipment with a $2.75 million deposit.
The offer makes Twinsburg Industrial Park the "stalking horse" bid that other interested parties must outbid by at least $750,000 to be considered.
The deadline for competing bids is March 5 and if there are more qualified offers, an auction would be held March 10.
A hearing to approve the sale of the plant and its equipment is set for March 11 before Judge Arthur Gonzalez in New York.
Documents show the Chrysler estate received inquiries from 31 parties initially about acquiring the Twinsburg assets, but the interest translated into only seven letters of intent and finally, one offer to purchase.
Twinsburg was initially slated to close next month but the need to stamp a supply of parts for vehicles such as Chrysler's family of minivans will keep the plant and its roughly 400 workers employed until June 26.
Chrysler Group LLC, which was formed with partner Fiat SpA last June and which purchased most of the old Chrysler's assets, is legally entitled to use the Twinsburg property through July 31.
The automaker said carrying costs to maintain the facility and property amounted to about $2.4 million annually.
Old Carco's largest transaction to date is last November's sale of its Newark, Delaware plant to the University of Delaware for $24.2 million.
__________________
Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
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Chrysler Group LLC Announces Executive Appointments
Auburn Hills, Mich. , Mar 4, 2010 -
In a continued effort to focus on core competencies and efficiencies, Chrysler Group LLC today named two appointments within its executive ranks.
Steve Williams has been named Head of Advance Engineering, Planning and Regulatory Affairs. In that role, Williams continues his responsibility for all advance engineering and assumes the Company's regulatory and planning activities.
In addition, the Company appointed Stephen J. Bartoli Head of International Product Planning, Business Development and Integration. In this position, Bartoli will be responsible for leading Product Planning, Market, Brand and Business Strategy and Alliance Planning for International markets.
Williams joined Chrysler in 1990 and has held a series of positions with increasing responsibility in engineering. He received both a master's degree in mechanical engineering and business administration from Wayne State University. He holds a bachelor's degree in mechanical engineering from Michigan Technological University.
Bartoli holds a master’s degree in business administration from Kellogg Graduate School of Management, Northwestern University and a bachelor’s degree in mechanical engineering from the University of Notre Dame. He joined Chrysler in 1986 and has held various positions in product planning, marketing and international operations where he was the head of Chrysler's European sales, media relations and marketing.
__________________
Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
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Treasury sees Chrysler meeting pension obligations
April 6, 2010, 3:02 p.m. EDT
Treasury sees Chrysler meeting pension obligations
SAN FRANCISCO -- The federal government could be on the hook for billions if General Motors Co. and Chrysler Group LLC fail to turn profits and terminate their pension plans, the Government Accountability Office concluded on Tuesday.
But the U.S. Treasury believes both will be able to make the payments, which are pegged at more than $12 billion for GM and about $2.2 billion for Fiat-controlled Chrysler in 2013 and 2014 combined, according to the GAO.
The Pension Benefit Guaranty Corp., however, could be on the hook for about $14.5 billion if the two domestic automakers remain mired in losses and move to terminate plans, the GAO said in a statement, citing prior estimates.
The GAO, the investigate arm of the U.S. Congress, said it sees some potential conflicts of interest arising, particularly if decisions must be made between allocating funds to company assets or to pension funds assets.
"Until Treasury either sells or liquidates the equity it acquired in each of the companies in exchange for the TARP assistance, its role as shareholder creates potential tensions with its role as pension regulator and overseer of PBGC in its role as pension insurer," the GAO said.
Chrysler Sells Old AMC Headquarters, Other Sites For $2.3M
Chrysler has reached a deal to sell the former headquarters of American Motors Corp. and three other aging automotive facilities for $2.3 million.
The auto maker’s Chapter 11 estate is set to sell the 54-acre complex on Detroit’s west side, two smaller plants in the city and property in Syracuse, N.Y., to Manchester Plymouth LLC of Mt. Clemens, Mich., according to papers filed with the U.S. Bankruptcy Court in Manhattan.
The portion of Chrysler that remains in bankruptcy is selling off the unwanted remnants of the auto maker in an effort to repay creditors.
Chrysler obtained the AMC headquarters, known as the Plymouth Road complex, when it acquired the smaller auto maker in 1987. Chrysler retained the site as an engineering center.
Workers often called the 1.4-million-square-foot building Jeep/Truck because that’s where Chrysler engineers designed products such as the Dodge Ram pickup and the Jeep Grand Cherokee.
At one time, nearly 2,000 Chrysler employees worked at the location. The company began moving workers out of the facility in recent years as part its downsizing.
The Plymouth Road complex was built in 1926 as a Kelvinator refrigerator factory and later produced helicopters during World War II, according to the Chrysler history site Allpar.com.
A spokesman for Chrysler declined to comment on the sale. Manchester Plymouth did not respond to requests for comment.
All four parcels were left with the bankruptcy estate when Chrysler’s most valuable assets were sold to a new company managed by Fiat S.p.A. That company is now known as Chrysler Group LLC.
Chrysler Group LLC statement regarding Bankruptcy Court approval of an agreement between Chrysler Group and the State of North Carolina that the State will not enforce its rejected dealer laws against the Company
Auburn Hills, Mich. , Apr 19, 2010 -
Chrysler Group is pleased to reach an amicable resolution to our issues with the State of North Carolina. Such state dealer laws grant rejected dealers specific statutory rights previously afforded only to existing dealers, and are preempted in accordance with the Bankruptcy Court’s prior rulings.
The actions to reduce Chrysler’s dealer network were a necessary part of Chrysler Group’s viability and central to the interim financing and partnership with Fiat.
The process to determine which dealership contracts were rejected evaluated dealership performance and market factors using data driven criteria and was applied to every dealer. The only alternative would have been complete liquidation of the Company, which would have resulted in all 3,200 dealers closing, hundreds of thousands of lost jobs, and defaults on billions of dollars in taxpayer loans.
There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group not only employed sound business judgment in restructuring its dealer network, but is acting in the greater public interest by protecting the dealer network that was created during bankruptcy.
Chrysler Group is confident the difficult decisions made during bankruptcy will continue to position the company for sustainable success and will enable the company to repay the U.S. Taxpayers in a timely manner.
__________________
Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
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Chrysler Group LLC Reports Audited Financial Results for the Period From June 10, 2009, to December 31, 2009
Auburn Hills, Mich. , Apr 21, 2010 - Chrysler Group LLC today announced its 2009 Audited Financial Results for the period from June 10, 2009, to December 31, 2009.
Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, “The steady progression of our financial results from June through December 2009 shows that Chrysler is on track to meet the ambitious, yet achievable goals announced in November. As a result of improving trading margins, operational efficiencies and rigorous cost discipline, we continued to strengthen our cash position through 2009.”
Please see these attached files for the full news releases.
Financial Results for the Period Ended March 31, 2010
Chrysler Group LLC Reports Financial Results for the Period Ended March 31, 2010
Auburn Hills, Mich. , Apr 21, 2010 - Chrysler Group LLC today announced its Financial Results for the period ended March 31, 2010.
Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, “This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable. We are also generating cash to finance the investments being made in our product portfolio and brand repositioning,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “There has already been an uptick in customer traffic in our dealerships in Q1 and we are confident that Chrysler sales will continue to increase as we launch new products in the second quarter, beginning with the all-new 2011 Jeep® Grand Cherokee. Moreover, later this year, Chrysler will launch 16 all-new or refreshed products including the all-new Chrysler 300, Dodge Charger, E-CUV, the iconic Fiat 500, and the Sebring replacement.”
Please see this attached file for the full news release.
Statement - Chrysler Group LLC Prevails in Ohio Dealer Network Arbitration
* Arbitration case was with Joe Kidd Dodge - a Cincinnati-area dealership whose contract was rejected during bankruptcy in 2009
* The arbitration was conducted on April 14, 2010, in Cleveland, Ohio
* This was the first scheduled arbitration case
Auburn Hills, Mich. , Apr 30, 2010 - The following statement can be attributed to Chrysler Group LLC:
Chrysler Group is pleased the arbitrator agreed with the difficult dealer network decisions made during the bankruptcy proceedings. There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group not only employed sound business judgment but is acting in the greater public interest by protecting the dealer network that was created as a result of the bankruptcy proceedings.
We are confident we now have the dealer network in place that allows dealers to be successful, which will result in greater investment in their communities, employees and customers and, ultimately will enable the Chrysler Group to repay the U.S. Taxpayers in a timely manner.
__________________
Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
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