Chrysler Files for Bankruptcy on Thursday

Chrysler, the third biggest car maker in the United States, filed for Chapter 11 bankruptcy on Thursday. Although the company has been fighting for ways to avoid bankruptcy in recent months, their creditors continued to fight for their money and Chrysler decided it had no other option.

Already living off of federal bailout money, Chrysler will now get more bailout money — as much as $8 billion more. After filing in New York, the company says that they will attempt to restructure within the next month.

In the restructuring process, Chrysler will reportedly look to change many aspects. They will try to build greener cars, with help from a partnership with Fiat, an Italian car manufacturer. Chrysler also said they will try to trim overhead and add more flexibility to their business model.

While going through the bankruptcy restructuring, Chrysler plants across the United States will shut down. With backing from the White House, many industry experts believe Chrysler will eventually be reborn.

“It’s a partnership that will give Chrysler a chance not only to survive,” said President Barack Obama, “but to thrive in a global auto industry.”

Chrysler Bankrupt (Image: Flickr)