Ailing US auto giant Chrysler is to file for bankruptcy protection, unable to complete its out-of-court restructuring, a White House official said yesterday.
The official said US President Barack Obama would make a statement on the auto industry at midday.
A bankruptcy filing would place the struggling number three automaker in the hands of a bankruptcy judge, although the company would likely get further government aid to restructure its operations.
PHOTO: REUTERS
The Obama administration, which has given Chrysler and its larger rival General Motors emergency loans, is also expected to help broker a deal that would give Italian maker Fiat a stake in Chrysler in exchange for small-car technology.
Even as auto workers voted on a new contract offering big concessions in exchange for Chrysler stock, the Wall Street Journal reported that a large number of the company’s 46 creditors voted against a deal that would give them US$2.5 billion in return for forgiveness of US$6.9 billion in Chrysler debt.
The Treasury had sweetened the deal with an increase of US$250 million over a previous cash offer that had been accepted by Chrysler’s major creditors, but not by all holders of Chrysler’s secured debt, the report said.
Obama suggested in a televised news conference earlier on Wednesday that even if Chrysler were forced into the bankruptcy courts, a quick restructuring could be achieved.
“I am actually very hopeful, more hopeful than I was 30 days ago, that we can see a resolution that maintains a viable Chrysler auto company,” Obama said.
The details of a marriage between Chrysler and Fiat “have not yet been finalized, so I don’t want to jump the gun,” Obama said at the White House news conference to mark his first 100 days in office.
“But I am feeling more optimistic than I was about the possibilities of that getting done,” he said.
Under a preliminary deal signed in January, Fiat would initially take a 20 percent stake which would then rise to 35 percent and could eventually reach 51 percent.
Fiat would pay nothing, but would provide access for Chrysler to its technology, notably for smaller, more economical vehicles.
In Milan, Italy, a report said that Chrysler and Fiat had signed a definitive alliance.
A Fiat spokesman would not confirm the report, saying he did “not know” who may have been the source of the information.
NEXT GENERATION: The four plants in the Central Taiwan Science Park, designated Fab 25, would consist of four 1.4-nanometer wafer manufacturing plants, TSMC said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) plans to begin construction of four new plants later this year, with the aim to officially launch production of 2-nanometer semiconductor wafers by late 2028, Central Taiwan Science Park Bureau director-general Hsu Maw-shin (許茂新) said. Hsu made the announcement at an event on Friday evening celebrating the Central Taiwan Science Park’s 22nd anniversary. The second phase of the park’s expansion would commence with the initial construction of water detention ponds and other structures aimed at soil and water conservation, Hsu said. TSMC has officially leased the land, with the Central Taiwan Science Park having handed over the
AUKUS: The Australian Ambassador to the US said his country is working with the Pentagon and he is confident that submarine issues will be resolved Australian Ambassador to the US Kevin Rudd on Friday said that if Taiwan were to fall to China’s occupation, it would unleash China’s military capacities and capabilities more broadly. He also said his country is working with the Pentagon on the US Department of Defense’s review of the AUKUS submarine project and is confident that all issues raised will be resolved. Rudd, who served as Australian prime minister from 2007 to 2010 and for three months in 2013, made the remarks at the Aspen Security Forum in Colorado and stressed the longstanding US-Australia alliance and his close relationship with the US Undersecretary
‘WORLD WAR III’: Republican Representative Marjorie Taylor Greene said the aid would inflame tensions, but her amendment was rejected 421 votes against six The US House of Representatives on Friday passed the Department of Defense Appropriations Act for fiscal 2026, which includes US$500 million for Taiwan. The bill, which totals US$831.5 billion in discretionary spending, passed in a 221-209 vote. According to the bill, the funds for Taiwan would be administered by the US Defense Security Cooperation Agency and would remain available through Sept. 30, 2027, for the Taiwan Security Cooperation Initiative. The legislation authorizes the US Secretary of Defense, with the agreement of the US Secretary of State, to use the funds to assist Taiwan in procuring defense articles and services, and military training. Republican Representative
TAIWAN IS TAIWAN: US Representative Tom Tiffany said the amendment was not controversial, as ‘Taiwan is not — nor has it ever been — part of Communist China’ The US House of Representatives on Friday passed an amendment banning the US Department of Defense from creating, buying or displaying any map that shows Taiwan as part of the People’s Republic of China (PRC). The “Honest Maps” amendment was approved in a voice vote on Friday as part of the Department of Defense Appropriations Act for the 2026 fiscal year. The amendment prohibits using any funds from the act to create, buy or display maps that show Taiwan, Kinmen, Matsu, Penghu, Wuciou (烏坵), Green Island (綠島) or Orchid Island (Lanyu, 蘭嶼) as part of the PRC. The act includes US$831.5 billion in
RSS