Court Approves Sale of Chrysler's Assets to Fiat - Nardelli's Reaction

As we told you earlier this day, the United States Bankruptcy Court Southern District of New York okayed the sale of Chrysler's assets to a new entity formed with Fiat, which means the American and the Italian automakers can now proceed with their merger plans. As we already know by now, Fiat will receive a stake in Chrysler - likely to be increased to even a majority interest after the company gets out of bankruptcy - while the American manufacturer will benefit from Fiat's small displacements models.

Through this deal, Chrysler plans to revamp the product range currently offered to American buyers and concentrate more on smaller engines that would better address the recession-hit market.

In a statement rolled out a few hours ago, Robert L. Nardelli, Chairman and Chief Executive Officer of Chrysler LLC, said today's court's decision was one of the most milestones toe be reached in the partnership with Fiat and the company can now proceed to the strategic alliance they announced back in January.

Here's the full statement rolled out by Chrysler and attributed to Robert Nardelli:

With this approval, the new Chrysler Group is created and can prepare to launch as a vibrant new company formed with Fiat. Through the hard work and foresight of many Chrysler stakeholders, Chrysler Group will soon begin operations with significant strategic advantages, such as a wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers.

While this has been an extremely difficult chapter in Chrysler's history for all involved, the new Company and its customers, employees and suppliers can now begin on a fresh page.

We are very grateful to loyal Chrysler customers who have supported us throughout this process and assure them Chrysler Group is well prepared to produce and support quality vehicles under the Jeep, Dodge and Chrysler brands as well as parts under the Mopar brand.

We also recognize the sacrifices, unstinting loyalty and enduring belief in Chrysler of many stakeholders, including Cerberus and Daimler, the UAW and CAW leadership, employees, dealers and suppliers who made critical contributions to the viability of Chrysler Group, Chrysler Financial and their efforts with GMAC to provide financing, and the energy and commitment of the U.S. Treasury, the President's Auto Task Force, Members of Congress and representatives at the state and community level and Canadian Federal and Ontario Provincial governments in helping to move Chrysler Group forward.

Without the extraordinary efforts of all these constituents, the alliance and the creation of a new Chrysler would not have been possible.