Chrysler expected to file for bankruptcy

Car manufacturer Chrysler is expected to enter bankruptcy protection after failing to meet a US government deadline to finalise a major restructuring plan.

The Obama administration had set Chrysler a deadline of midnight tonight Washington time (5am Friday BST), but White House official says bankruptcy now looks inevitable.

Chrysler has already received a $4bn (£2.7bn) loan from the US government, and was due to present the latter with a restructuring plan by April 30 in order to gain further government loans of about $6bn (£4bn).

This would have included an attempt to persuade Chrysler’s main lenders to accept $2bn (£1.358bn) in cash, while writing off its $6.9bn (£4.685bn) secured debt.

Earlier this week, Daimler reached a deal to relinquish its stake in Chrysler, while General Motors announced plans to slash 21,000 jobs in the US and axe its Pontiac brand.

Meanwhile in the UK, reports reveal that a £800m bail out package earmarked for Jaguar Land Rover is now in doubt with protracted discussions between the Treasury and the Department for Business, Enterprise and Regulatory Reform slowing down the process.

Any delays in agreeing terms with the Treasury for a refinancing plan could see a delay in the Tata-owned company gaining much needed funds. This could lead to significant job cuts.

Recommended

WeightWatchers pork supplier denies swine flu links

Marketing Week

The multinational meat processing company which produces WeightWatchers branded pork products in the UK has rebutted claims its Mexican pig farm may be the source of the global swine flu outbreak. Smithfield Foods has been named by villagers in La Gloria, Mexico, where the first human cases were recorded, as a possible source of the […]

Improving loyalty in a down-turn

Steve Barr, Head of customer insight and planning, Acquity

Focus on your best customers is something I hear a lot and especially so when times are hard. The mantra moves from acquisition is everything to retention is all. Typically, someone notices that key metrics – net new customers, cost per sale, etc – are deteriorating. While the acquisition process hasn’t changed, the quantity or […]

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now