Chrysler concluded its deal with Fiat on Wednesday, June 10, 2009, which in effect ended its 42 day reorganization through bankruptcy. As part of the deal the federal government gave Chrysler $6.6 billion in exit financing. Under the terms of the agreement Chrysler sold the bulk of its assets to Fiat. This was an important milepost for the Obama administration which has been seeking to aid the ailing American auto industry after years of losses and declining sales. Chrysler and government officials had repeatedly demanded that the court approve the restructuring quickly inasmuch as Chrysler was losing approximately $100 million a day while its plants were shut and other overhead costs had to be paid. It is anticipated by Chrysler, Fiat, and the federal government that a new car maker will emerge unburdened by the present debt levels and labor costs. Fiat will run the new company that will now also sell smaller fuel-efficient cars worldwide.
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