Chrysler not bankrupt any more, bought by Fiat

After overcoming everyone from disgruntled dealers to pissed-off pensioners, the sale of Chrysler to Fiat is finally complete after 42 days. Fiat now owns most of Chrysler’s assets and will receive US$ 6.6 billion in “exit financing” from the U.S. government.

The Obama administration has succeeded in reorganizing Chrysler quickly. The new Chrysler Group LLC has a better chance of being more competitive, having shed much of its legacy labor costs and debt, with new small cars from Fiat in the pipeline.

Official statements by soon-to-be-former Chrysler CEO Bob Nardelli and Fiat boss Sergio Marchionne congratulated employees on being a part of “a leaner, healthier and more robust company” and promised that the world’s sixth largest automaker will begin to show signs of improvement immediately.

As the automaker emerges from bankruptcy, Chrysler’s VEBA union retiree trust will own 55% of the company, with Fiat getting a 20% share that can grow to a maximum of 35%. The U.S. and Canadian governments take the rest.

Future Chrysler models will include the 2011 Jeep Grand Cherokee, the 2011 Chrysler 300C, and redesigned variants of the Fiat 500 and the Fiat Bravo.