Chrysler Said to Consider Keeping Plant Open for Mid-Size Cars - Bloomberg.com

(Bloomberg) -- Chrysler Group LLC, the U.S. automaker Fiat SpA controls, may delay closing the plant that makes its mid-size sedans for at least a year until the company creates new models, people familiar with the situation said.

The factory in Sterling Heights, Michigan, may be leased from Old Carco LLC, Chrysler’s predecessor now in bankruptcy, to keep making the Dodge Avenger and Chrysler Sebring after a production accord ends next year, said three people, who declined to be named because the matter isn’t final.

The potential delay reflects the difficulty the combined company faces in retooling existing factories and making new models. The plant is the only Chrysler site that manufactures - mid-size sedans, and the company hasn’t said whether it will shift production or phase out Avenger and Sebring.
Chrysler Said to Consider Keeping Plant Open for Mid-Size Cars - Bloomberg.com

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Auto Task Force Met With Fiat SpA Chief Executive about Chrysler Deal

Reported from Bloomberg.Com

Bloomberg-- U.S. Treasury advisers Ron Bloom and Steven Rattner spent most of a 2.5 hour meeting with Fiat SpA Chief Executive Officer Sergio Marchionne talking about his plan to take a 35 percent stake in Chrysler, a person briefed on the meeting said.

Members of Barack Obama’s auto task force are meeting with automakers, suppliers, debtholders, labor leaders and other stakeholders to determine whether they should give additional aid from the Troubled Asset Relief Program to help the industry. GM, Chrysler and their finance companies have already been granted $24.9 billion in TARP loans and are seeking as much as $21.6 billion more.

To contact the reporter on this story: Jeff Green in Detroit at jgreen16@bloomberg.net

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