Former Chrysler loses $344 million in July

Old Carco, LLC, the company formed to manage and liquidate the assets abandoned after the formation of Chrysler Group LLC, lost $344 million in July, according to a filing in New York bankruptcy court. It reported about $2 million in revenue, mostly from charges to the new Chrysler Group for operating facilities licensed to the [...]

Old Chrysler defaults on government loans

Old Carco LLC defaulted on $3.34 billion in debtor-in-possession financing from the U.S. and Canadian governments in June. The company also missed a $29 million interest payment on the loan.
According to documents filed yesterday, the remnants of Chrysler that remained in bankruptcy had costs of $10.2 billion in June, more than the total assets with [...]

Old Carco asks court to block dealer lawsuits

Old Carco, the company created to handle assets abandoned by Chrysler Group LLC when it exited bankruptcy, has asked the U.S. Bankruptcy Court in New York to stop lawsuits filed by eleven terminated dealerships. The dealerships are trying to sue to regain their franchises.
The motion, filed Tuesday, asserts the dealers are trying to do an [...]

Dealers sue Chrysler

Eleven dealerships are currently trying to sue Chrysler Group, LLC, which has asked judge Arthur Gonzalez to block the suit, according to the Detroit News. The dealers are attempting to regain their franchises, saying that their state’s motor vehicles statutes outweigh the bankruptcy code. A hearing is scheduled for August 27.

The dealers are primarily from [...]

Chrysler creditors want to sue Daimler AG

Creditors of the former Chrysler LLC have asked Judge Arthur Gonzalez, who continues to preside over the Chapter 11 bankruptcy of Old Carco, the company created to dispose of the automaker’s abandoned assets, for permission to sure former owner Daimler AG.
The group representing Chrysler’s unsecured creditors claim the German company stripped Chrysler of its most [...]

Toyota to dump California plant

It appears the days are numbered for California’s last automotive production facility. Sources with knowledge of the situation say the Japanese automaker will most likely wind down its share of the New United Motor Manufacturing Inc. plant it once shared with General Motors, ending the employment of the only UAW workers building Toyota products.
On Thursday, [...]

Congress passes law requiring reinstatement of dealers

Spending bill H.R. 3170RH, passed by a narrow margin by Congress, included an amendment which read:
SEC. 745. (a) None of the funds made available in this or any other Act may be used to obtain a financial or ownership interest (or right to acquire such an interest) in an automobile manufacturer that deprives an automobile [...]