Wednesday, June 10, 2009

Fiat and Chrysler Get Hitched

The Supreme Court vacated the stay of proceedings that Judge Ginsburg issued on Monday, and Chrysler and Fiat immediately took advantage of the opportunity and merged. The new "good" Chrysler will be called the Chrysler Group (as opposed to the Chrysler Corporation and Chrysler LLC in previous incarnations), and Fiat will initially own 20% of the new company. Fiat will be allowed to go up to a 35% share, but the US and Canadian governments will have to be paid back first. Although the CNN article here says the UAW will own a 55% share, it is likely that the UAW will select trustees for a trust that will actually own the stock.

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