Chrysler to Sell Assets to Fiat, Close Plants

As a result of Thursday’s bankruptcy filling, the American manufacturer is said to plan the sale of most of its assets to their new partner, Fiat. In addition, the Michigan-based company unveiled its plans to close down its facilities in Michigan, Missouri, Ohio and Wisconsin. According to the manufacturer, the 4,800 people affected by the closures will be transferred to other facilities.

Chrysler’s lawyers will ask for a date when the sale should begin to be set. Under American bankruptcy law, selling assets must be done in two steps but, in Chrysler's case, things are fairly different as Fiat seems to be the only bidder.

"I think the sale will happen quickly. The actual proceeding is going to take a long time," Heidi Sorvino, bankruptcy partner at Smith, Gambrell & Russell told Associated Press, adding that it will most likely take 30 to 60 days to complete the sale.

In court documents, Chrysler said it won't keep its Sterling Heights, Mich., plant (Chrysler Sebring and Dodge Avenger) as well as the Conner Avenue plant in Detroit (Dodge Viper). The St. Louis North plant that makes Dodge Ram pickups will be also closed. In addition, the Twinsburg, Ohio, parts stamping plant and Kenosha, Wis., engine plant will be shut down as well.

The St. Louis South plant and an assembly plant in Newark, Del., idled last year, will also not make the cut as does the Detroit Axle plant, already scheduled to be replaced by a new facility in Port Huron, Mich. Eight more plants will be scrapped by December 2010.

"While some facilities may close, substantially all Chrysler employees will be offered employment with the new company," Chrysler spokeswoman Dianna Gutierrez was quoted as saying by theautochannel.com. "Employees currently located at a facility identified for disposition will be offered a position at one of the facilities sold to the new company."