New Chrysler set to emerge from bankruptcy

Saying that the only alternative was an "immediate liquidation" of its assets, bankruptcy Judge Arthur J. Gonzalez approved the sale of most of Chrysler's assets Sunday to Chrysler Group, L.L.C., a new group led by Italian automaker Fiat.

The $2 billion sale leaves the new Chrysler Group 68 percent controlled by a United Auto Workers health care trust, 20 percent by Fiat, and 12 percent held by the United States and Canadian governments.

In his 47-page opinion, Gonzalez said the sale was in the best interest of citizens of the U.S. and Canada, and that "the terms of the Fiat transaction present an opportunity that the marketplace alone could not offer, and that certainly exceeds the liquidation value."

Gonzalez rejected almost all of the more than 300 objections to the sale, including those from consumer groups, some of the 789 dealers Chrysler is cutting, and a group of Indiana pension funds.

Chrysler said the sale would save more than 100,000 jobs, and that the partnership with Fiat would give the company access to products that will complement their current portfolio, and lead to more fuel-efficient vehicles already in development.

We will continue to monitor the news from Chrysler and GM, reporting here in the Cars blog and also updating advice and news on the Auto Crisis hub.

—Jim Travers