Chrysler may have been relieved to hear that Fiat boss Sergio Marchionne has no intentions of walking away from a Chrysler-Fiat tie-up, but that announcement has given the Indian pension funds responsible for Chrysler’s delayed sale a little more firepower.
Lawyers representing the three funds filed a new argument with the United States Supreme Court on Tuesday claiming Marchionne’s remarks should give the court reason to take its time with the final ruling. Both Chrysler and the federal government were pushing for a speedy decision by the Supreme Court – as the Chrysler-Fiat alliance has a clause for termination if a sale is not completed by June 15th – but Marchionne’s statement indicates there is no reason for a rush decision.
“The risk of termination by Fiat if the transaction does not close by June 15 no longer provides a basis for driving the timing of these proceedings,” the lawyers said in a court document obtained by the Detroit Free Press.
However, both Chrysler and the U.S. government have a vested interest in a timely Chrysler sale – even if it doesn’t affect the Fiat tie-up — as the Michigan automaker is losing about $100 million for every week it is shut down while in bankruptcy.
