glend
01-05-09, 10:07 AM
I received this from a friend who works for Chrysler.
From: Gerald Jenkins
Sent: Friday, 1 May 2009 6:59 AM
Subject: A New Chapter is about to Begin -
Dear colleagues,
Yesterday Chrysler LLC announced that, as a result of a comprehensive restructuring plan, it signed an agreement in principle to establish a global alliance with Fiat SpA to form a vibrant new company.
In Chairman and CEO Bob Nardelli’s words: “This alliance will provide the new company with significant strategic advantages, including access to high-quality, environmentally friendly and fuel-efficient small and compact vehicles, as well as platforms and Fiat powertrain technologies and components that will be produced at Chrysler manufacturing sites. It also will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and global supplier base while providing each with access to additional markets, wider distribution of Chrysler vehicles to markets outside of North America, and potential distribution of Fiat vehicles through Chrysler’s dealerships in North America.”
However, despite substantial progress on many fronts, our parent company was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.
It is very important that make clear that Chrysler’s Mexican, Canadian and other International operations like Australia and New Zealand are not part of any bankruptcy filling. Chrysler ANZ continues to market, sell and service our vehicles and also honour the warranties of our vehicles. The NEW Chrysler will continue to produce and support quality vehicles over the long term, under the Jeep®, Dodge and Chrysler brands and parts under the Mopar brand.
In light of the complexity of this announcement, it is important that we explain what we mean by a “structured” bankruptcy: With this filing, our parent company has submitted 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. I have attached a one-page summary that explains how similar Chapter 11 processes work in the U.S.
We are profoundly grateful for your support. We take enormous pride in the contributions we have made to our industry, are honoured by the trust our customers have placed with us for more than 80 years and look forward to continuing to serve them for many years to come.
I look forward to working with you to build a stronger new company for the twenty-first century.
Gerry Jenkins
Managing Director
Chrysler Australia, New Zealand and South Pacific Region
From: Gerald Jenkins
Sent: Friday, 1 May 2009 6:59 AM
Subject: A New Chapter is about to Begin -
Dear colleagues,
Yesterday Chrysler LLC announced that, as a result of a comprehensive restructuring plan, it signed an agreement in principle to establish a global alliance with Fiat SpA to form a vibrant new company.
In Chairman and CEO Bob Nardelli’s words: “This alliance will provide the new company with significant strategic advantages, including access to high-quality, environmentally friendly and fuel-efficient small and compact vehicles, as well as platforms and Fiat powertrain technologies and components that will be produced at Chrysler manufacturing sites. It also will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and global supplier base while providing each with access to additional markets, wider distribution of Chrysler vehicles to markets outside of North America, and potential distribution of Fiat vehicles through Chrysler’s dealerships in North America.”
However, despite substantial progress on many fronts, our parent company was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.
It is very important that make clear that Chrysler’s Mexican, Canadian and other International operations like Australia and New Zealand are not part of any bankruptcy filling. Chrysler ANZ continues to market, sell and service our vehicles and also honour the warranties of our vehicles. The NEW Chrysler will continue to produce and support quality vehicles over the long term, under the Jeep®, Dodge and Chrysler brands and parts under the Mopar brand.
In light of the complexity of this announcement, it is important that we explain what we mean by a “structured” bankruptcy: With this filing, our parent company has submitted 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. I have attached a one-page summary that explains how similar Chapter 11 processes work in the U.S.
We are profoundly grateful for your support. We take enormous pride in the contributions we have made to our industry, are honoured by the trust our customers have placed with us for more than 80 years and look forward to continuing to serve them for many years to come.
I look forward to working with you to build a stronger new company for the twenty-first century.
Gerry Jenkins
Managing Director
Chrysler Australia, New Zealand and South Pacific Region