Judge Blesses Chrysler Deal; Bankruptcy Could End Today

Second Chapter 11 filing in recent years

(NEWSER) - Bad news for Twinkies lovers: Hostess filed for Chapter 11 bankruptcy protection today. But never fear, the company will continue operating during bankruptcy proceedings with help from a $75 million loan. "We remain hopeful that we can reach an agreement that will allow us to amend our labor contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for our employees," said the president and CEO. Not helping matters is the fact that sales are declining, particularly as consumers move away from Hostess' signature white bread to whole grains. More»

The 6% stake will sell for $500 million

(NEWSER) - The Treasury Department has reached a deal to sell its remaining 6% stake in Chrysler to Fiat for $500 million, making the Italian automaker Chrysler’s majority shareholder with a 52% stake, the Detroit Free Press reports. Fiat will then pay another $75 million for the government’s right to buy the United Auto Workers’ remaining stake in the company, $15 million of which will go to the government of Canada. More»

But says it has no plans to merge operations

(NEWSER) - Fiat traded as two separate companies today, after spinning off its trucks and tractors units, which will henceforth be known as Fiat Industrial, from its passenger car business on Jan. 1. The move has been widely praised, and could lead to a tighter integration between Fiat and Chrysler, according to the New York Times . But Fiat CEO Sergio Marchionne says the company doesn’t actually plan to merge operations with Chrysler just yet, the Wall Street Journal reports. More»

Revamped automaker will reintroduce Alfa Romeo to US

(NEWSER) - Now four months out of bankruptcy, Chrysler is set to unveil a new business plan that relies heavily on models from Fiat, its Italian partner, and abandons many American cars. The company will reintroduce the luxury Alfa Romeo to the US and also bring in a Mexican-built Fiat 500, the tiny vehicle ubiquitous in Europe. Several Dodge and Jeep models will be discontinued. More»

(NEWSER) - Chrysler is planning to produce a Fiat-branded subcompact car at a plant in Mexico, insiders tell the Wall Street Journal. The move may anger two key shareholders of the restructured automaker—the US government and the United Auto Workers. Workers at the Toluca, Mexico, plant are represented by a Mexican union, not the UAW. "There is going to be political fall-out on anything in this kind of environment related to jobs," says one analyst. More»