US Supreme Court clears way for Chrysler's sale to Fiat

10 June 2009 09:29  [Source: ICIS news]

SINGAPORE (ICIS news)--The US Supreme Court cleared the way for the sale of bankrupt automobile major Chrysler to a group led by Italian carmaker Fiat SpA in a decision released late on Tuesday.

The government-backed sale of Chrysler was expected to close on Wednesday morning in the US.

Indiana pension funds had asked the court to delay the sale, citing “irreparable harm” if the deal were to push through.

In a statement released on 1 June, Chrysler had said it would sell most of its operations to Chrysler Group LLC, a new company that was formed in alliance with Fiat. This sale had been approved by the Bankruptcy Court of the southern district of New York.

The steep economic downturn had pushed Chrysler, along with General Motors, to bankruptcy despite the US government’s huge financial aid.

The automobile industry is a major end-user of petrochemicals. The American Chemistry Council estimates that nearly $2,700 worth of chemical products or chemical processing value goes into each vehicle.

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By: Pearl Bantillo
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