Chrysler bankrupt

phat46 · April 30, 2009, 05:05:29 PM

Just on the Detroit news. Some plants are being shut down immediately, all to shut down soon. Fiat still wants the merger. They are also saying that the UAW will have 55% control (?) Some people are saying this is the only way Chrysler can survive, i dunno, Now the gov't is involved, and I feel Fiat might just want a foot in the door in the U.S. and then dump what has become of Chrysler. i don't see them being a viable Co. ever again...

Hope I'm wrong. I wonder what will become of all the places that are owed money by Chrysler?

unklian · April 30, 2009, 05:42:21 PM

It's probably just Chapter 11 Protection, so they can reorganize.

Just like the big magazine publisher going bankrupt recently.

enjenjo · April 30, 2009, 06:35:06 PM

QuoteIt's probably just Chapter 11 Protection, so they can reorganize.

It is, There are some hedge funds that were owed a minor part of the money that chrysler owes investors. they refused to take stock in the company to free up Chryslers cash flow. by declaring bankrupcy, the courts can now order the hedge funds to take stock in leu of what they are owed. So now the hedge funds, who have insurance against backrupcy of their debtors, can collect on that.

Carnut · April 30, 2009, 06:54:11 PM

I am sad for what is happening to my country.

Charlie Chops 1940 · April 30, 2009, 08:00:13 PM

It's gonna be a long hard haul back to where our products are once again manufactured goods instead of traded paper. Now that the U.S. businesses sent so much of their manufacturing out of the country they are finding it hard, if not impossible, to re-establish their base again. Such a large portion of consumer goods are now imported that jobs that support purchases of domestic goods are rapidly going away. And the trading paper jobs are going away, too. I fear we will be mired down in this mess for a long time.

U.S. enterprise has truly lost the script. I too am sad for the prospects.

Charlie

wayne petty · May 01, 2009, 12:20:03 PM

this is a totally twisted...

but if the hedge funds want to argue .... perhaps the BK judge should just transfer their portion over to the madoff payout funds... since they want to be hard to deal with...

Mikej · May 01, 2009, 03:13:22 PM

Quote from: "Charlie Chops 1940"It's gonna be a long hard haul back to where our products are once again manufactured goods instead of traded paper. Now that the U.S. businesses sent so much of their manufacturing out of the country they are finding it hard, if not impossible, to re-establish their base again. Such a large portion of consumer goods are now imported that jobs that support purchases of domestic goods are rapidly going away. And the trading paper jobs are going away, too. I fear we will be mired down in this mess for a long time.

U.S. enterprise has truly lost the script. I too am sad for the prospects.

Charlie

I believe you are correct. We must have value added products for our economy the survive. People who buy foreign cars are more likely to answer the opinion poles. I quit watching motor week years ago when import cars are good - US cars are bad. We have been bombarded with this for years. The sheep listen. I have had cars and trucks from the US big three and have always had good luck. If the imports are so good why do they need service departments.
The Government does not make money, it takes money. The more the Government thinks they need to help us, the more it hurts us.

ps i know the gov really does make money by printing it

unklian · May 01, 2009, 03:30:27 PM

Quote from: "Mikej"The sheep listen.

And they follow the heard, never questioning the direction.

enjenjo · May 01, 2009, 04:12:01 PM

QuoteI quit watching motor week years ago when import cars are good - US cars are bad.

I realised this many years ago. The Ford Probe, and the Mazda 626 were built on the same line, by the same people, with the same parts, and they trashed the quality of the Ford, while praising the Mazda.

jaybee · May 01, 2009, 05:05:22 PM

A lot of good things being said here. This morning I heard Ron Gettlefinger of UAW say they'll only have 1 nonvoting member on the board, so at least that helps deal with the issue of the union being majority stockholder. Then again there have been a lot of "employee owned" companies over the years so that's probably overblown.

Looking not only at this deal but some others this thing about sophisticated investors being insured against loss is coming up more and more. I see it as being pretty corrosive because those are investors that come out better if the company liquidates instead of restructuring. That seems wrong on the face of it because you're saying "I come out better if everyone loses their jobs so sucks to be them." It's both heartless and bad for the greater economy.

unklian · May 01, 2009, 05:09:39 PM

Blurring the line between Sophisticated, and Selfish.

Quote from: "jaybee"
Looking not only at this deal but some others this thing about sophisticated investors being insured against loss is coming up more and more. I see it as being pretty corrosive because those are investors that come out better if the company liquidates instead of restructuring. That seems wrong on the face of it because you're saying "I come out better if everyone loses their jobs so sucks to be them." It's both heartless and bad for the greater economy.

Carnut · May 01, 2009, 06:14:12 PM

Well, I'm sure Chrysler will have folks standing in line at their dealerships just waiting to buy the new 40-mpg Fiats with Chrysler badges that the government wants produced.

Looks like we'll finally be catching up with former Soviet Union and Russia which been producing Fiats for years.

Carnut · June 01, 2009, 05:35:48 PM

Well it looks like the sale of Chrysler to Fiat was approved today.