Italy’s largest car manufacturer, Fiat, has purchased a commanding share of the Chrysler Group LLC utilizing an asset purchase agreement. Retaining the largest percentage of the Chrysler Group LLC over Fiat is the United Auto Workers’ retiree healthcare trust fund. The completion of the asset purchase agreement between Fiat and Chrysler makes the joint operation the sixth largest carmaker in the world.

An Asset Purchase Agreement is a legal document involved in the purchase of all or some of the assets of one entity by another.

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This morning, GM began calling dealerships and letting them know they will no longer be part of their dealer network. The company is pulling the plug on 1,100 “underperforming and very small sales volume U.S. dealers” throughout the U.S.

“Dealers around the country nervously awaited news Friday morning, with some saying they were in the dark about how they would be notified. In Richmond, Va., Royal Chevrolet co-owner Del Mugford was slightly relieved when he sifted through FedEx packages Friday morning and hadn’t received any bad news from General Motors. But he knew his future could be determined by a phone call or a piece of mail.”

The announcement of the cuts came the day after Chrysler announced that it was going to be dropping 789 of its roughly 3,200 dealerships by around June 9.

GM’s cuts wont be effective immediately though, the dealerships agreements will terminate at the end of  October 2010.

Between the two companies, the job cuts could send more than 100,000 dealership workers to the unemployment line.

Both companies have too many dealerships for too few sales are slashing costs as they race to restructure.

“GM’s dealer cuts are part of the company’s plan announced last month to cut more than 2,600 dealers by 2010. The remaining cuts will come from closed Saturn and Hummer dealers, along with 400 dealers that the company expects will close voluntarily. Another 500 would be consolidated into other dealerships.”

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And that’s just so far…

The Jones Day firm has billed Chrysler more than $18.5 million dollars since the failing automobile company paid them $1 million in late November to establish a retainer. According to the Jones Day filing, about $5.8 million remains in the retainer which means Jones Day has drawn down just over $13 million so far. Business is good representing bankrupt companies, I guess now is the perfect time.

“Also of interest: the firm is staying below the magic $1,000 per hour mark that a few firms have jumped over in bankruptcies this year. Corrine Ball, the lead bankruptcy partner in the Chrysler case, is billing at $900 per hour. She’s actually not the top-billing partner, though. That distinction goes to John Cornell, who will be advising Chrysler on employee benefits and executive compensation to the tune of $950 per hour.

One other nugget from the filing: According to the firm’s engagement letter from November, Jones Day was advising General Motors in its talks with Cerberus Capital Management on a possible GM-Chrysler mega-merger. Should those talks reopen — an unlikely happening now, we realize — Jones Day would still advise GM and build a wall between its GM and Chrysler teams, the letter says.”

The only other firm that applied is Togut, Segal, and Segal, which will serve as conlict council for Chrysler and advise on any matters that present a conflict for Jones Day. ” Togut partners will bill between $760 and $890 per hour; associate and counsel rates will range from $295 to $680.”

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