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Chrysler has filed for bankruptcy. Will GM be next? What could this mean for the auto industry? What will it mean for the Stateline area? Bankruptcy reorganization would allow auto-makers to emerge debt-free without unnecessary plants and taxing obligations to retirees. It would clear the companies of obligations to maintain redundant brands and dealers. A restructured Chrysler or GM could focus on designing fewer but better cars and trucks.
There will be pain then gain. President Obama vowed Chrysler's bankruptcy process would be quick, efficient and controlled. The deal with Fiat is expected to close within 60 days. In bankruptcy, a new company will be formed that will buy the assets of Chrysler, like plants, brands, equipment, and contracts with the union, and will leave the liabilities. Plants are set to idle during the bankruptcy but are expected to reopen when Chrysler emerges.
What will this mean for Belvidere? Chrysler has no immediate plans to permanently lay off workers. The Belvidere plant was recently modernized and has the ability to make the smaller vehicles Fiat will focus on, which could give the plant a better chance of remaining in operation. Governor Pat Quinn said he is prepared to offer dollars to help with a transition, but whether the Belvidere plant stays open in the long-term will be up to Chrysler and Fiat, not local government. Belvidere business owners have expressed concerns about what even a temporary lay off will mean. All local businesses will be affected if Chrysler workers are not able to go out and spend. Chrysler is the region's largest employer.