THE WHITE HOUSE
Office of the Press Secretary
________________________________________________________________________
FOR IMMEDIATE RELEASE April 30, 2009
The Governments of the United States and Canada have reviewed and
approved the restructuring plans of Chrysler LLC and its subsidiaries,
including Chrysler Canada Inc.
As a result, thanks to the considerable contributions and sacrifices of
company management, the United Auto Workers and Canadian Auto Workers,
and major lenders, and a successful partnership agreement with Fiat
SpA, our Governments are in a position to extend support to help
Chrysler restructure itself and re-emerge as a globally competitive
automaker.
"We appreciate the close and cooperative relationship between the U.S.
and Canadian governments during this period of restructuring in the
auto industry. Together, we have put in place a financing package that
will give Chrysler a chance to achieve financial viability," said
President Obama.
"I want to thank President Obama and the U.S Automotive Task Force for
their close cooperation with Canada on this challenging issue. Thanks
to our joint efforts, there is now a road ahead to a stronger Chrysler
and a stronger industry in the future on both sides of the border,"
said Prime Minister Harper.
The Governments will provide $US 10.5 billion in financing, including
short term and medium term capital and debtor-in-possession financing
to assist with the court-supervised restructuring of Chrysler LLC. Of
this amount, the United States is contributing $US 8.08 billion and
Canadian governments (including the Government of Canada and Government
of Ontario) $US 2.42 billion.
The United States will have 8 percent of the equity of the restructured
Chrysler LLC, and Canada and Ontario will have 2 percent, and the
United States will appoint four independent directors to the new
Chrysler LLC board, while Canada will appoint one independent director.
The close cooperation of our Governments acknowledges that the
automotive industries in Canada and the United States are tightly
linked, with major automobile manufacturers and suppliers operating on
both sides of the border in a completely integrated way. The cost
sharing reflects the historic shares of auto production in both
countries for Chrysler, which will be maintained under this
restructuring agreement.
The United States and Canada are committed to continuing to work
together closely as we chart the path to a stronger automobile industry
in both countries, both in the short term as we complete similar
efforts on General Motors restructuring plan, and in the long term as
we seek to ensure a competitive, environmentally responsible automobile
industry for the future.
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