U.S. President Barack Obama on Thursday announced that U.S. auto giant Chrysler is filing for bankruptcy, but said that he holds out hope for the auto company and the greater U.S. economy. During his brief comments made in the White House, Obama said that Chrysler has reached a deal with Italian automaker Fiat, to keep the U.S. company afloat. After several U.S. government bailouts, and failed attempts at restructuring, Chrysler was deemed unable to sustain its own company. The nation's third-largest automaker has already received $4 billion in government loans. In what many sources say will also lead to U.S. government aid of up to $8 billion, Chrysler will partner with Fiat. But, Fiat will only take full ownership of the partnership after Chrysler has paid back “every dime” of the taxpayer money lent to them earlier. The U.S. auto company is now $6.9 billion in debt. It was “unsustainable” for Chrysler to continue without the bankruptcy filing and the merger, Obama said, adding that “the necessary steps have been taken” to give Chrysler “a new lease on life” through the merger. Touting Chrysler as the embodiment of the “spirit…of the American people,” and a “pillar of our industrial economy,” Obama said, unfortunately, that pillar has been “weakened” in its competition with foreign competitors. Defending the company's decision, Obama said that the bankruptcy filling is “not a sign of weakness,” and that “this process will be quick, it will be efficient… [and] will not disrupt the lives of those who work at Chrysler.” The move will also have the “full backing of the United States government,” Obama said. While the U.S. government has worked to help the company, he said, “we simply cannot keep this company, or any company afloat” on American tax payer dollars,” adding that with the Fiat partnership, “there was a chance that Chrysler” could have a future. The U.S. president also praised the sacrifices that so many Chrysler stakeholders made to see the company succeed, but also said he does “not stand” with those other companies that did not make sacrifices. “These are challenging times” for the auto industry and the American people, Obama said, adding “we will succeed… we will rebuild our entire economy.” He renewed his plea for those Americans looking to buy a new car, asking them to buy an American car.
