Italian automaker Fiat on Wednesday became the new owner of most of Chrysler's assets, not even a day after the U.S. Supreme Court lifted the stop on a government-backed deal, allowing for the embattled U.S. auto giant to merge with Fiat. The merger, which U.S. President Barack Obama has long touted as a move to save Chrysler from absolute failure, would come as a victory for the Obama administration, as the U.S. Justice Department urged the Supreme Court to allow the deal, arguing that because Chrysler is not currently manufacturing cars it continues to lose $100 million during each day of bankruptcy. Since the merger was allowed, Fiat, one of Europe's biggest auto makers, now is expected to take an initial 20 percent share in Chrysler, in return for sharing technology that can be used to build, smaller, more fuel efficient cars. The deal clears the way for a new, leaner Chrysler to emerge from the bankruptcy protection the company filed last week. The company would emerge without billions in debt, 789 underperforming dealerships and burdensome labor costs that nearly sank the automaker. After news of the merger, Fiat CEO Sergio Marchionne immediately was named CEO of the new partner company, which said in a statement that it would soon reopen Chrysler factories that were abandoned during the bankruptcy process, costing the automaker $100 million per day. The new company will focus on smaller vehicles, areas in which Chrysler was weak. “Work is already under way on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward,” the new company said in a statement.
