Fiat and Chrysler: Supreme Court will allow sale

The deal with Chrysler and Fiat is on again after the U.S. Supreme Court has said that it will allow the sale to go ahead. This means that Chrysler LLC will be able to sell its assets to a group being led by Italian carmaker, Fiat. The deal was put on hold due to the Indiana pension funds and consumer advocates tried to block the sale of Chrysler assets, but U.S. Supreme Court refused to grant a stay.

According to Bloomberg, this was the last obstacle, which stood in the way of this plan backed by the Obama administration. This new deal will allow the Chrysler, Jeep and Dodge brands to be more competitive. Chrysler said that a quick sale was important as they are currently losing around $100 million each day.

Regarding the challenge made by the Indiana pension funds and consumer advocates, the justices said that they did not meet the legal standard for emergency intervention.

General Motors is also hopeful of a quick sale of its assets, after filing for chapter 11-bankruptcy protection more than a week and a half ago. Both GM and Chrysler have had almost $25 billion in federal bailout loans, they hope to at least $40 billion more in the hope of restructuring their organizations.

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