President Obama is expected to announce a successful deal between Chrysler and Italy’s Fiat during a noon news conference, TheDetroitBureau.com has learned. But due to problems with a few, reluctant lenders, it is expected that he will force a short, “surgical” bankruptcy process, sources are reporting.
Exactly how long the process will take is not yet clear, but Chrysler will receive interim funding to keep operating “normally” during the process, and additional funds once it emerges from bankruptcy.
More details should emerge from the President’s speech, which comes a month after he initially declined to provide further aid to both Chrysler and its cross-town rival, General Motors Corp. One uncertainty is what will happen with Chrysler’s CEO, Bob Nardelli. Many observers believe he may be replaced by an executive chosen by Fiat Chairman Sergio Marchione.
TheDetroitBureau.com will be filing updates throughout the day.