With sales down sharply and pressure to generate cash before government loans run out, Chrysler CEO Sergio Marchionne shook up his executive team yesterday, replacing two of his brand managers after just four months and splitting Dodge into car and truck units. The changes show Marchionne’s penchant for moving quickly and demanding performance, industry analysts say. But it’s also a sign that all is not well inside the company’s sprawling headquarters complex in the Detroit suburb of Auburn Hills.

Italian automaker Fiat is reporting a second-quarter loss of $238 million due to a steep decline in year-on-year sales.

Supreme Court Justice Ruth Bader Ginsburg has temporarily delayed Chrysler’s sale to Fiat.
Ginsburg says in an order today that the sale is “stayed pending further order.“ Thee action indicates that the delay may only be temporary. Chrysler has said a delay could scuttle the deal.

A bankruptcy judge said last night he will rule by Monday on whether Chrysler LLC can sell most of the company to a group headed by Italy’s Fiat. U.S. Judge Arthur Gonzalez heard 11 hours of testimony and arguments yesterday following marathon sessions the two previous days. Chrysler says the only way it can avoid liquidation is through a deal where it would sell most of its assets to a group lead by Fiat Group SpA and create a new company.

Attorneys for Chrysler LLC said the company will file a motion by this morning to sell substantially all of its assets to Italian automaker Fiat Group SpA, but that won’t include eight plants, including five that the automaker revealed it will close by the end of next year. While Chrysler faced its first hearing yesterday in Manhattan bankruptcy court, court documents showed that the ailing automaker plans to close five plants in Michigan, Missouri, Ohio and Wisconsin that employ about 4,800 people. Chrysler said the workers will be offered jobs at other plants.