
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: February 12, 2014
Partner
201-896-7095 jglucksman@sh-law.comDuring the recent recession, the demand for automobiles diminished significantly. Coupled with the “legacy” costs that Detroit’s automakers carried, particularly those concerning their accrued but unfunded pension and healthcare obligations to retired employees, the American auto industry nearly tanked, leading both General Motors and Chrysler to file for protection under Chapter 11 of the bankruptcy law. Chrysler however, one of those companies, recently completed the final step of its emergence from bankruptcy by paying $5 billion to a United Auto Workers Trust, according to Bloomberg.
The UAW health-care trust had provided these funds five years ago, to assist during Chrysler’s financial rescue. The company is now owned by Fiat, which bought the 41.5 percent share of the company that was held by the trust.
“Fiat and Chrysler together have satisfied all the monetary commitments that were made to Chrysler in 2009,” Chief Executive Officer Sergio Marchionne said in the statement. “None remain outstanding.”
With its bankruptcy case in the past, Marchionne plans to transform Fiat/Chrysler into a manufacturer that can compete with the likes of General Motors or Volkswagen AG. The primary listing – or main stock exchange – for the company is going to be moved to New York, where it will be renamed Fiat Chrysler Automobiles NV. Shares will also be traded on the Milan Exchange.
Now that the U.S. auto industry has pulled itself out of the recession, Fiat actually relies on its U.S. business for profit, as losses in Europe are piling up due to a six-year market contraction in the region. It will be interesting to see how the losses in Europe compare to the profits in the U.S. moving forward. If things get bad enough, could Fiat Chrysler Automobiles be headed for another bankruptcy – this time due to its European side?
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!