But there’s a vague glimmer of hope here, as Chrysler franchisees will now be getting their marching orders from Fiat SpA rather than Chrysler proper.

Now, ordinarily, I’d laugh myself stupid at the thought that somehow Fiat (widely known by the acronym for Fix It Again, Tony) would be able to generate a more viable corporate strategy than Chrysler, but hey…I’m laughing out the other side of my face today as it becomes clear that Fiat outlasted Chrysler.  And in business, survival is the only real judge of viability.  If you’re still in business tomorrow, then your business model works.

So what will that strategy be?  We won’t find out until at least Wednesday, when the franchisees get the word.

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Out of a hole and going into a new one. This is the scenario that Chrysler seems to be projecting as it has announced a new advertising campaign that comes in the heels of their strategic global alliance with Italian automaker Fiat SpA. The new ads will begin appearing on primetime television on Monday, May 11.

Under the tagline introduced on May 3, “We’re building a new car company. Come see what we’re building for you,” the campaign talks directly to consumers by highlighting the features of Chrysler LLC’s product line in a fresh, new and memorable way. The messaging focuses on the quality, technology, safety and value built into every Dodge, Chrysler and Jeep vehicle.

“When we asked consumers what they wanted to know about Chrysler, they told us to tell them about our products, tell them why they should buy our vehicles and give them a reason why they should be confident in the future of this company. We believe this campaign delivers on all of those objectives,” said Steven Landry, Executive Vice President – North American Sales, Marketing, and Mopar Parts and Service, Chrysler LLC. “In addition, this campaign gives us the opportunity to reinforce that it’s business as usual and demonstrate a bright future ahead for Chrysler.”

(Source) Press

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Yesterday, Chrysler announced that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it had reached an agreement in principle to establish a global strategic alliance with Fiat SpA. Chrysler filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court to facilitate the restructuring and alliance.

First-day motions were filed to support Chrysler’s employees, dealers, vendors and suppliers, together with its customers and other stakeholders. The Court granted approval for the company’s request to continue payment of wages and health and welfare benefits to employees and contractors, and continue its customer warranty programs.

(Source) Press

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“This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages,” said Bob Nardelli, Chairman and CEO of Chrysler. “It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution.”

Chrysler initiated discussions with Fiat more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded. Chrysler and many of its stakeholders worked tirelessly to agree upon concessions that will result in a significantly lower cost base and enable fulfillment of a broader strategic alliance.

“Even though total agreement was not possible, I am truly grateful for all that has been sacrificed, on the part of many of Chrysler’s stakeholders to reach an agreement in principle with Fiat,” said Nardelli. “My number one priority has been to preserve Chrysler and the thousands of people who depend on its success. While I am excited about the creation of the global alliance, I am personally disappointed that today Chrysler has filed for Chapter 11. This was not my first choice. ”

Chrysler also will file 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.

During the restructuring process, the government will provide sufficient debtor-in-possession (DIP) financing to allow continuation of “business as usual.” The company will seamlessly honor warranty claims, pay suppliers and keep our dealer body operating to continue to serve our valued customers.

Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy filing.

(Source) Press

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