Ethiopian Review

The U.S. Supreme Court has cleared the way for the sale of American auto giant Chrysler to Italian auto company Fiat, despite objections from some Chrysler investors.

The court announced its decision late Tuesday after hearing arguments earlier in the day.

Both auto companies countered a petition from some Chrysler investor groups that said the sale should be stopped because it would put investors at risk.

Chrysler had also argued that if its sale to Fiat did not go through by a June 15 deadline the deal could collapse.

Separately, some Chrysler dealers told a bankruptcy court Tuesday the automaker’s plan to close hundreds of dealers is unfair.

The number-three U.S. automaker says it can not survive unless it is sold to Fiat and about 25 percent of its dealerships are closed.

The U.S. government has poured billions of dollars in aid into Chrysler and top U.S. automaker General Motors because they are considered a critical part of the country’s economy.

Separately Tuesday, General Motors named a new chairman to help lead the biggest U.S. automaker once it emerges from bankruptcy.

GM says it chose 67-year-old Edward Whitacre, who had been the former chairman and chief executive of U.S. telecommunications giant AT&T.

- VOA