Chrysler filed for Chapter 11 bankruptcy protection in April 2009 before becoming part of Fiat Chrysler.
The bankruptcy followed years of financial pressure, declining U.S. vehicle sales, high labor costs, and the global financial crisis. The U.S. government provided financing while Chrysler reorganized its debts and operations.
Chrysler emerged from bankruptcy in June 2009, with the Italian automaker Fiat initially taking a minority stake. Fiat gradually increased its ownership and completed the acquisition of Chrysler in 2014. The combined company became Fiat Chrysler Automobiles.
Chrysler is sometimes confused with General Motors, which also entered Chapter 11 in 2009. Chrysler’s bankruptcy was distinct because its restructuring quickly created an international partnership with Fiat, later contributing to the formation of Stellantis in 2021.