Documents reveal Chrysler tried to sell parts to Chinese, tie-up with almost every automaker

An interesting bit of information....
According to an affidavit filed in the New York U.S. Bankruptcy Court where Chrysler filed for Chapter 11, the automaker's Co-President and Vice Chairman Tom LaSorda is quoted as saying "Chrysler has attempted in recent weeks to sell product lines and other units to a number of Chinese companies, but these efforts ... have been unsuccessful." The now bankrupt automaker offered the Chinese firms – including the Beijing Automotive Industry Holding Co. and Chery – engines, transmissions, vehicle lines, intellectual property rights, distribution channels and its brands during a five-day summit in February. But nothing came to fruition.

Even more interesting/disturbing is the revelation that for the last two years, Chrysler has attempted to forge an alliance with nearly every automaker on the planet, including GAZ, Honda, Hyundai, Magna, Nissan and Tata, along with General Motors and even Toyota.

The document reveals:

Chrysler and GM were in discussions in June and August of 2008, then later in November, with a last-ditch attempt in January which died shortly thereafter.

A plan was proposed to Toyota, in which Chrysler would provide the Japanese automaker with its excess capacity or work with Toyota to develop new products, including (laughably) hybrids.

Talks with Nissan failed in July, started again in September, then again in January and were eventually shot down.

And finally, Honda received a proposal from Chrysler – then promptly rejected it the next day.

According to LaSorda, potential mergers, "have been determined and undertaken in good faith, but have met uniformly without success." And with that, Chrysler determined the best alliance would be with Fiat – not that it had many options remaining.

Source;
http://www.autoblog.com/2009/05/01/documents-reveal-chrysler-tried-to-sell-parts-to-chinese-tie-up/

Chrysler to get $15-billion in government aid

Financing from Canadian and U.S. governments will help car maker operate through Chapter 11 bankruptcy
JACQUIE MCNISH AND GREG KEENAN
Globe and Mail Update
April 30, 2009 at 9:25 AM EDT

U.S. and Canadian governments will provide about $15-billion (U.S.) in financing to Chrysler LLC to help keep it operating through bankruptcy protection, sources said Thursday.

The federal and Ontario governments will provide about $3-billion, the sources said, which will cover debtor-in-possession financing and exit financing when the beleaguered auto maker emerges from Chapter 11 bankruptcy protection. The governments will hold a 10-per-cent stake in Chrysler, with the Canadian governments' stake sitting at 2 per cent.

Chrysler is expected to file for bankruptcy protection on Friday.

Talks between debt holders that were insisting on a higher cash payment than major banks accepted, broke down early Thursday, although the deadline for a deal is still 11:59 p.m. on Thursday.

A key piece of the Chrysler plan is in place, however, with the signing of a strategic alliance with Fiat SpA imminent and expected to be announced late Thursday morning by U.S. President Barack Obama, sources said.

Fiat will take a 20-per-cent stake in Chrysler.

If the No. 3 Detroit auto maker goes into bankruptcy protection as expected, it will be split into two companies, with its key Canadian operations being placed into the part of the company that will emerge from creditor protection and form the basis for the Fiat-Chrysler strategic alliance. Unwanted assets will be hived off into another company.

Source;
http://www.theglobeandmail.com/servlet/story/RTGAM.20090430.wgovs0430/BNStory/Business/home