CHRYSLER'S

BANKRUPTCY

Student:
Dudanu Nicola
BA11
 Beginning in the later half of 2008, a global-scale recession adversely affected the economy of the United States. A
combination of several years of declining automobile sales and scarce availability of credit led to a more widespread crisis in
the United States auto industry in the years of 2008 and 2009.

Chrysler is one of the most famous automobile brands in the US, and is nearly a century old, having been founded in 1920. Its
parent company now is Stellantis. However, despite its fame, when the 2008 financial crisis struck, it deeply impacted the
automotive industry as well, which is why Chrysler had to declare bankruptcy.

Important data
Total assets at the time of bankruptcy (in billions of dollars): 39.3

Date of bankruptcy: April 30, 2009

America's third-largest car
manufacturer, Chrysler, has
declared itself bankrupt after a
handful of creditors withstood
pressure from the Obama
administration to forgive billions
of dollars in debt, casting a cloud
of uncertainty over tens of
thousands of jobs at factories,
suppliers and dealers.
 After round-the-clock negotiations broke down,
the 83-year-old Detroit ­carmaker put its future in
the hands of the courts, despite an 11th-hour deal
with Italy's Fiat to pool ­technology in building new
vehicles.
KEY EVENTS
2009

April 21 April 30th May 14th June 9th June 10th

The U.S. Chrysler and Chrysler’s Fiat closes its
says it will Fiat confirm a planned The U.S. Supreme takeover of
make about global strategic alliance with Court clears the Chrysler. Fiat
$500 alliance as Fiat poses no way for the sale of Chief
million Chrysler files competitive Chrysler LLC to Executive
available to for Chapter 11 issues, says
Fiat. Sergio
Chrysler to bankruptcy the U.S.
Chrysler also wins Marchionne
the end of after talks with Federal will also be
April. bondholders to Trade
court approval to
Chrysler’s
restructure its Commission. cut a quarter of its
CEO.
debt collapse. U.S. dealerships.
July 24th September October 27th October 30th
Fiat wins 16th Chrysler asks a The United Auto Workers says
unconditiona Chrysler will federal bankruptcy it remains engaged in talks to
l approval present a five- court to approve a convince Fiat to reverse plans
from the year business sale of its shuttered to shutter Chrysler plants
European plan by the end of Newark, Delaware, scrapped in the bankruptcy.
Commission November, Sergio plant for $24.25
to acquire Marchionne says. million.
Chrysler.
Stockholders, bondholders, retirees and manufacturing plant communities took a
major hit, but the companies lived to fight another day. Had Chrysler and General
Motors fallen into collapse, it would have been devestating for Metro Detroit.

In a letter directed to his employees , Nardelli said, "Thank you again for your
tireless efforts during this extraordinary time, and your dedication to ensuring
Chrysler's future success."
https://www.businessinsider.com/gm-ford-chrysler-almost-
died-during-financial-crisis-changes-since-2018-9

https://www.poynter.org/reporting-
editing/2009/understanding-and-explaining-the-chrysler-
bankruptcy/

https://www.theguardian.com/business/2009/apr/30/chrysler-
verge-bankruptcy-talks-collapse

https://en.wikipedia.org/wiki/Effects_of_the_2008%E2%80%93
2010_automotive_industry_crisis_on_the_United_States