AUBURN HILLS, MI – The U.S. Bankruptcy Court, Southern District of New York, has approved Chrysler LLC's request to sell all of its operations to Chrysler Group LLC, a new company formed in alliance with Fiat SpA.

The new company "will soon begin operations with significant strategic advantages, such as a wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers," said Chrysler Chairman and CEO Bob Nardelli in a company statement.

Development of "the next generation of environmentally friendly, fuel-efficient, high-quality vehicles" is underway, according to the Chrysler statement.

Chrysler's Mexican, Canadian, and other international operations also will be acquired by the new Chrysler Group.