Chrysler Files for Bankruptcy, Officially

After months of turmoil and battle for survival, the towel was finally thrown. It's official now, the smallest of the Big Three is now bankrupt. Chrysler succumbed to the global economy slowdown and filed for Chapter 11 bankruptcy protection. In the meantime, Chrysler said it will close all of its plants starting Monday and they will remain closed until the company comes out of bankruptcy. At least three Detroit-area factories sent workers home Thursday after suppliers stopped shipping parts over fears they would not be paid. However, the Chrysler and Fiat deal does seem now very probable with the partnership supposedly to rebuild the old Chrysler into a new vibrant company. Normal production schedules will resume when the transaction is completed, which is anticipated within 30 to 60 days. So when Chrysler emerges from bankruptcy, the United Auto Workers union will own 55 percent of the automaker and the U.S. government will own 8 percent. The Canadian and Ontario governments, which are also contributing financing, would share a 2 percent stake. Can't believe the maker of the PT Cruiser which I rented from National is so broke.