Chrysler LLC's decision to file for Chapter 11 bankruptcy protection, while also forming a partnership with Italy's Fiat Group SpA, will have widespread ramifications for everyone from its suppliers, to customers, to dealers.
Here's a look on what it means for each of those groups:
CAR BUYERS
President Barack Obama on Thursday reassured owners of Chrysler vehicles that their warranties were still good regardless of the Chapter 11 filing. He also urged consumers in the market for a new car to buy American and support the industry.
In March, the administration's pledged to stand behind the warranties on cars and trucks from both Chrysler and General Motors Corp. in an effort to allay customers' fears that the automakers wouldn't be around to honor them.
Chrysler, Jeep and Dodge Vehicles
In around 18 months, Fiat models will appear in U.S. showrooms. The Italian company also has committed to building Fiat cars in Chrysler factories, to be sold as Chryslers.
In addition, GMAC Financial Services, the financing arm of GM, reached a deal to provide financing for Chrysler customers.
Under a four-year agreement, GMAC will be able to exclusively offer discounted financing rates to Chrysler customers in the same way it already offer them to GM buyers.
The long-term future of Chrysler Financial, Chrysler's own financing arm, and its role in dealer wholesale financing, remains murky. Spokeswoman Amber Gowen said customers with existing Chrysler Financial loans and leases shouldn't see any changes as a result of the GMAC agreement. In addition, the company still plans to keep making retail loans.
Chrysler products still have their fans.
Richard Ridge, 72, of Sharon, Conn. was parked outside Wal-Mart Thursday in his six-month old silver Chrysler Pacifica.
The bankruptcy might be an issue "if we need to get parts," Ridge said, "but if Chrysler is still in business, I would certainly buy another one."
WORKERS
Both the United Auto Workers and Canadian Auto Workers ratified cost-cutting deals this week as part of Chrysler's attempt to avoid a Chapter 11 filing.
The UAW agreement, which takes effect May 4, includes commitments from Fiat to manufacture a new small car in one of Chrysler's U.S. facilities and to share key technology with Chrysler.
The Pension Benefit Guaranty Corp., the government corporation that insures the benefits of about 44 million workers and retirees, said Thursday that the Chapter 11 filing does not change the status of the company's pension plans. They are still funded by Chrysler and insured by the PBGC.
Chrysler also said Thursday that it plans to shut down production at most of its plants until the deal with Fiat becomes final, which is expected in the next 30 to 60 days. Hourly workers can apply for state unemployment. Chrysler will pay up to 50 percent of a worker's gross pay for a 40-hour week. The duration of the payments depends upon length of service.
Chrysler has 26,801 hourly workers in the U.S., plus 10,691 salaried workers and 765 more listed as supplemental.
Gregg Toles, 52, an 11-year Chrysler assembly worker showed up for his afternoon shift Thursday at Chrysler's stamping plant in Warren, Mich. only to be sent home.
"If we can form a partnership with a company like Fiat, we can get more business in here," Toles said, adding that the plant was probably operating at about half capacity before Thursday's shutdown.
SUPPLIERS
Chrysler's Chapter 11 filing comes at an already tough time for auto suppliers, many of whom are struggling to stay in business as automakers continually curtail production.
Industry observers have speculated that the loss of business through production cuts or payments delayed as a result of the court oversight could force suppliers that are heavily dependent on Chrysler to shut down their own production or even close up shop. This in turn could cause supply shortages at other automakers, both domestic and foreign, and make them curtail production as well.
Struggling suppliers could get help from the Treasury Department's $5 billion financing support program, designed to help suppliers keep parts flowing to GM and Chrysler.
The program, originally announced in March, will provide government guarantees for the financing of auto parts that have been shipped to the Detroit carmakers but have not yet been paid for.
Chrysler has said it expected to receive $1.5 billion for its suppliers under the program.
Suppliers also account for many of Chrysler's top 50 creditors including Toledo, Ohio-based Ohio Module Manufacturing Co. ($70.3 million), Milwaukee-based Johnson Controls Inc. ($50.3 million) and Columbus, Ind.-based Cummins Engine Co. ($43.9 million).
DEALERS
Chrysler plans to reduce its dealer network to cut costs, but didn't say Thursday how it planned to do so. GMAC agreed to become the preferred provider of wholesale financing for Chrysler dealers.
The National Automobile Dealers Association urged Chrysler to not use bankruptcy as a tool to slash its dealer ranks. Such a move, NADA argued, wouldn't improve Chrysler's viability in the near term.
"It would actually work against Chrysler's stated objective to increase revenue and cut costs," NADA Chairman John McEleney said in a statement.
Gus Russo, co-owner of Lochmoor Chrysler Jeep in Detroit, thought he and his Chrysler dealership had "dodged a bullet" when the UAW and some creditors struck deals earlier in the week.
Now Russo, a Chrysler dealer since 1979, isn't sure what's in store for his dealership. He expects some Chrysler dealers to merge or close.
"I'm sitting here worried now. I don't know where we fit in," Russo said. "How are they going to pick and choose and am I going to get paid for all that Chrysler owes me?"
Other dealers were more optimistic.
