05/12/09 Employee Letter (GMAC)
Message from Bob Nardelli
Last modified on Tuesday, May 12, 2009, 9:09 pm.
The April 30 announcement of our restructuring included a note that Chrysler, with the backing of the U.S. Treasury, had reached an agreement in principle with GMAC Financial Services to become the preferred lender for Chrysler dealer and consumer business. I’m very pleased to report that we passed another milestone today as U.S. Bankruptcy Court approved the financial services agreement with GMAC to provide the automotive financing products and services to our company’s dealers and customers. GMAC Financial Services will be the preferred lender in North America for Chrysler, Jeep and Dodge dealer and consumer business, including wholesale of new and used vehicles as well as retail. GMAC Financial Services will be able to offer the best long-term finance options for our dealerships and customers, and is established as a bank holding company with access to a variety of funding sources.
During the rest of the week, we’ll be working through the process determining how we will organize our dealer and supplier networks as we move forward. You’ll hear more about these developments in a few days.
You also may have seen the public notices published in major newspapers today concerning bids for Chrysler. It’s clear to us that after exhaustive negotiations with other automotive companies from around the world, over an extended period of time, that the alliance with Fiat to create a new Chrysler represents the best opportunity for our company to move forward and preserve value for all of our stakeholders. Still, the court is required to give all parties one final opportunity to submit a better offer. The deadline for those submissions will be May 20. Additional public notices to this effect will be repeated in the coming days.
On May 26, we will file a notice with the court designating the “lead bidder” or the company or entity that provides the best value for Chrysler assets. On May 27, there will be a court hearing to approve the sale of our assets to that lead bidder. Upon approval by the court, the transaction will be reviewed by regulatory agencies just as any transaction would. It is expected that this part of the process would also move quickly and allow for an expedited closing.
Moving ahead on this schedule, we look forward to the rapid emergence of a vibrant new car company. Thank you all for your continued focus and dedication to building a new and better Chrysler.
Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options