Accessibility links

Breaking News

Chrysler Fiat Deal Moves Forward

The U.S. Supreme Court has cleared the way for Chrysler's sale to Fiat, rejecting a plea by opponents to block the deal. The sale of Chrysler assets to Fiat was expected to close a week ago, but was delayed after some investors argued Chrysler could raise more money by selling its assets to the highest bidder. Meanwhile, the U.S. automaker returned to bankruptcy court Tuesday, seeking approval to terminate 789 dealer franchises.

Bankrupt U.S. auto giant Chrysler has been fighting for its future after Supreme Court Justice Ruth Bader Ginsburg agreed to delay the Chrysler sale to Fiat. A group of investors asked the high court to block the sale, claiming the agreement is unfair to Chrysler's debtholders.

Meanwhile, Chrysler's decision to cut its dealerships by 25 percent has also been challenged in court.

Stanley Balzekas, 85, a long time Chrysler dealer, received notice of his dealership termination by mail.

"It was almost like a meanness to this," he said. "You know, you are dirt on the floor, and it just wasn't right.'

Attorneys representing 300 dealerships say the closures should be delayed until the Supreme Court rules on the merger.

For now, auto dealer Hunter Elkins says dealerships are trying to sell as much of their Chrysler inventory as possible.

"We own all the cars that are on this lot," he added. "They're bought and we need to sell them, so it's a great time to buy a car as you can imagine."

Production at Chrysler plants had been halted, pending the outcome of the Supreme Court's decision.

Fiat has the right to walk away if the sale is not completed by June 15. But officials for the Italian automaker say the company is committed to working out a deal with Chrysler.