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Chrysler Buying Back Plant Tossed in Chapter 11

But no clear plans for Sterling Heights facility after 2012.

by on Feb.19, 2010

The plant builds sedans, including Chrysler Sebring. Sales are down since its 2007 debut.

As part of its bankruptcy, last year, Chrysler abandoned seven factories; but now the automaker wants one of those facilities back, and plans to buy back the assembly line, in Sterling Heights, Michigan.

The move, if approved by a U.S. bankruptcy court judge, next month, would give the automaker a place to produce midsize sedans like the Chrysler Sebring and Dodge Avenger – both of which are due for “significan” redesigns as part of Chrysler’s upcoming product blitz.

The updated models are scheduled to remain in production through the 2012 model-year.  The following year, the U.S. maker switches to an all-new platform developed by its Italian partner, Fiat.

Free, But No Steak Knives!

Chrysler will not say whether Sterling Heights would pick up any new products based on that new platform but going forward, the company intends to increase the flexibility of its plants, according to CEO Sergio Marchionne.  That would make it possible for the Sterling Heights plant to produce any number of future Chrysler offerings, indeed, numerous platforms simultaneously.   (more…)

“Old” Chrysler Racks Up $10 billion in June losses

Bankruptcy reorganization again under fire.

by on Sep.04, 2009

Leaves behind $10.2 billion in losses to "Old Carco LLC."

Leaves behind $10.2 billion in losses to "Old Carco LLC."

If recent sales numbers are any indication, Chrysler Group LLC has some serious challenges ahead of it as its foreign master, Fiat, struggles to turn the U.S. carmaker into a profit-making entity.

At least Chrysler won’t have to report the $10.2 billion in losses reportedly run up by the operations it left behind as part of its bankruptcy.

A Profitable Source of News!

A Profitable Source of News!

When Chrysler emerged from Chapter 11, in June, it spun off an assortment of debts and bad assets, including seven unneeded plants, were left behind, effectively spun off into a separate “old” Chrysler, Old Carco LLC, that will be closed down in the not-too-distant future.  According to a still-unaudited accounting filed with the federal bankruptcy court in New York City, that collection of bad assets rang up a whopping $10.2 billion in losses during June alone.