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Detroit's new emergency city manager worked on Chrysler bankruptcy [w/video]

Kevyn Orr, the new emergency city manager of Detroit, has a history with one of Michigan's most famous residents: Chrysler. Governor Rick Snyder (at right) appointed Orr to the position yesterday with the belief that Detroit needs outside assistance to right the city's mounting financial woes. Orr (at left), a partner with the Jones Day law firm, will begin work on March 25 and receive $275,000 a year for his work. While state officials believe the new city manager will be able to complete his duties in 18 months, the contract is technically open-ended.
The 54-year-old attorney helped steer Chrysler through its 2009 bankruptcy, earning $700 per hour for his efforts. He was also instrumental in convincing the courts to allow Chrysler to shutter 789 dealerships in a single month. Orr says he's aware that his efforts won't have made him any friends in Southern Michigan.

Marchionne completed Fiat-Chrysler deal from a Florida beach

Sergio Marchionne is the CEO of Fiat, which as you may have heard, has finally worked up a deal to finish acquiring the Chrysler Group after months of bargaining with the United Auto Workers and its VEBA healthcare trust, which owned just over 40 percent of the American brand. Where was Marchionne when the deal was finally hammered out? Well, not tucked away in a frigid Detroit board room until the wee hours of the morning.
Nope, one of the largest deals in automotive history was reportedly hammered out on the beach - at the home of a banker, in the Florida resort town of Vero Beach. Marchionne traveled to the home of Alain Lebec, a senior managing director at Brock Capital LLC, one of the advisory companies for the VEBA fund, where both sides met to make final arrangements in the $4.35-billion exchange. The location of the final deal, though, is nearly as remarkable as the pace with which it came about.
According to anonymous sources pinned down by Automotive News Europe, before the meeting, the two sides were meeting in Detroit as recently as December 19, which is where Fiat made one of its final revised offers. Naturally, the VEBA made a counter offer, which led Marchionne to initiate the Vero Beach meeting.

Marchionne urges industry consolidation, again

Sergio Marchionne isn't just an instigator of mergers – he's also a staunch advocate for their need in the industry. And he seems convinced another big one will happen in the next few years. "I am absolutely certain that before 2018 there will be a merger," said Marchionne. "It's my personal opinion, based on a gut feeling." Though the terms "absolutely certain" and "gut feeling" would seem to convey vastly different degrees of certainty, his chief's statement would seem to suggest some inside knowledge of an impending deal. Marchionne, of course, brokered the consolidation of the Fiat Chrysler Automobiles empire over which he now presides, and has been actively seeking another merger to help reduce redundancy and overhead between major automakers in the industry. With which automaker he might be seeking such a merger, however, remains a big question. He was recently reported to have approached Mary Barra regarding a potential merger with General Motors, but was said to have been rebuffed. The Italian-Canadian executive may not be alone in his advocacy for industry consolidation, though. Opel chief Karl-Thomas Neumann said that "In principle, Marchionne is right – the auto industry develops the same things ten times over." Bringing major automakers together would ostensibly reduce that redundancy. Marchionne had been linked to a potential takeover of Opel when GM was shedding brands post-bankruptcy, but in the end the Detroit giant opted to keep its European division in-house.