Chrysler, Auto Industry | featured news

AP - Top executives from General Motors and Chrysler face tough questions from lawmakers about sweeping plans to close hundreds of car dealerships as the auto companies undergo government-led bankruptcies.

CEO Fritz Henderson calls the move 'a defining moment' in the company's reinvention. In trading, shares of GM dropped 28%. Meanwhile, Chrysler takes another step toward emerging from bankruptcy.

Approval of sale of assets to Fiat clears way for U.S. automaker to exit bankruptcy protection.

Robert Nardelli, Chrysler's departing chairman and chief executive, said he expects the sale of the bulk of Chrysler's assets to a group headed by Italy's Fiat Group SpA to close Friday, assuming the judge overseeing the automaker's bankruptcy protection case approves the deal.

Judge's approval would set up one of the biggest, fastest bankruptcy proceedings of its kind.

Some auto dealers that Chrysler LLC plans to close are beginning a challenge to the automaker's plans to quickly sell itself in bankruptcy.

The carmaker, which filed for bankruptcy protection two weeks ago, sent letters to 789 of its 3,200 American dealers revoking their franchises.

Communities, reeling from the collapse of car companies, seek new ways to prosper, rebuild.

Things were already tough in Kokomo, Indiana.

The Italian carmaker that just took over Chrysler is in talks to buy GM's European operations.