In spite of pleas from the White House and the Justice Department, the Supreme Court yesterday put a hold on Chrysler's sale to Fiat. On one side are Indiana pension funds who want to protect their investment. On the other side are Chrysler and Fiat, who want to protect Chrysler's very existence, and the government which wants to protect the economy and jobs. In between all of that is the law.
Chrysler was given until June 15 to arrange its affairs or Fiat had the right to walk away from the deal, which would mean almost certain liquidation for the Pentastar. A Fiat spokesman, however, has come out today and said "Fiat won't walk away from Chrysler."
No reason was given for Fiat's new commitment, but in addition to the fact that Fiat intimately knows how long it takes to get a stumbling business through necessary hurdles, this is probably the company's best near-term chance to get into the U.S. market with a whole lot of helping hands. For the time being, everyone now waits to see what the Supreme Court will do with the case. Thanks for the tip, Dave!