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Bankruptcy Proceedings Moving Quickly For Chrysler

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Bankruptcy Proceedings Moving Quickly For Chrysler

Economy

Bankruptcy Proceedings Moving Quickly For Chrysler

Bankruptcy Proceedings Moving Quickly For Chrysler

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  • <iframe src="https://www.npr.org/player/embed/104237276/104237260" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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Chrysler Vice Chairman Jim Press says a new Chrysler company could emerge from bankruptcy very soon. Getty Images hide caption

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Chrysler Vice Chairman Jim Press says a new Chrysler company could emerge from bankruptcy very soon.

Getty Images

Chrysler is moving through bankruptcy more smoothly than some expected. A top Chrysler executive says a healthier version of the company could come through court as early as next month.

The nightmare scenario was this: Chrysler spends months fighting creditors in bankruptcy court, car sales fall even more, and Chrysler eventually collapses.

But the first couple of weeks in court have gone pretty well. Key lenders who opposed Chrysler's reorganization plan disbanded after taking a public drubbing from the White House.

Chrysler Vice Chairman Jim Press says a new Chrysler company could emerge from bankruptcy very soon.

"It appears that we may be running ahead of schedule," he says. "The current plan is nine weeks, but I'm hopeful that that's going to be many weeks earlier."

He says the new company could emerge as early as June.

That new company would have Chrysler's "good parts," including the Jeep brand. A bad Chrysler — including old plants — would stay in bankruptcy and be sold off in parts to pay creditors.

Press says the sooner a new company gets out of bankruptcy court, the better. "It's good for the image, it's good for business to get this behind us," he says.

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But even if Chrysler exits bankruptcy soon, it still faces big challenges. For instance, the company has no small cars that sell well. Chrysler hopes to fix that with technology from Fiat, the Italian automaker. But Chrysler won't be able to produce those new small cars for at least 18 months.