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Italian auto major Fiat SpA and partners have completed acquisition of most of Chrysler LLC's assets, completing an Obama administration-directed fast-track reorganisation for Chrysler. The merger will create the world's sixth-largest carmaker in which Fiat will own 20 per cent. The new company, known as Chrysler Group LLC, will begin operations immediately, the companies said in a statement. Other parts of Chrysler will remain in bankruptcy to be sold or closed.  Fiat chief executive Sergio Marchionne will also be CEO of Chrysler. Chrysler's former CEO Bob Nardelli is expected to leave the company once the sale is completed.
The combined company would have sales of 4.5 million vehicles globally, ranking just behind Ford Motor Co based on 2008 results. Marchionne is pushing for consolidation in the auto industry because he expects only six global producers to survive the first global recession since World War II. The new company announced an organisational restructuring to focus on the Chrysler, Jeep, Dodge and Mopar brands. The new leaner, flatter structure is intended to restore brand promise and dealer confidence. All appointments are effective immediately.
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