DETROIT, May 2 (UPI) -- The realities of U.S. automaker Chrysler's bankruptcy filing are sinking in with the company's day-to-day operations, a manufacturing official says.
Frank Ewasyshyn, Chrysler's executive vice president of manufacturing, said Friday the factory shutdowns that were part of the bankruptcy settlement will delay the critical launch of the 2011 Jeep Grand Cherokee by up to six months, while replacement parts for repairs on some Chrysler vehicles could run low in the next 60 days, The Detroit Free Press reported.
"Four weeks from today, a customer who purchased a Chrysler 300 will pull into his local dealer to have a taillight repaired … and will be unable to get the parts necessary," Ewasyshyn said.
The filing also means Chrysler need to obtain court approval before it can spend $753 million on incentives for dealers to sell its vehicles, the newspaper said.
Under the bankruptcy deal, Chrysler will use $10.5 billion in loans from the U.S. and Canadian governments to consummate a merger with Fiat SpA, in which Fiat eventually will own 35 percent.
"The longer the sale to Fiat is delayed, the more likely this devastating scenario will occur," Ewasyshyn told the Free Press.
