A deal to sell Chrysler to Italian car maker Fiat closed this morning, after the U.S. Supreme Court denied a request by three Indiana pension funds to put a halt to the sale.
The decision came after the U.S. government and Fiat issued stark warnings that Chrysler would go out of business by next week if the deal was delayed, according to the Financial Times newspaper.
The transfer of most of Chrysler’s assets and some of its liabilities to the Fiat-led group occurred this morning, according to the New York Times. Unwanted assets, mostly idled plants and surplus properties, will remain in Chapter 11 to be sold or wound down, the newspaper added.
Reuters reports that Fiat is joined by a union-aligned trust and the U.S. and Canadian governments in taking over the best parts of Chrysler.
Fiat has sent a team of executives and engineers to Detroit to work with Chrysler to cut costs and prepare for the U.S. launch of the Cinquecento (500), Fiat’s popular small car, according to Reuters.
