Rumormill: Obama to Announce Chrysler Bankruptcy Tomorrow!

Discussion in 'Politics, Religion, Social Issues' started by stevento, Apr 29, 2009.

  1. stevento macrumors 6502

    stevento

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    #1
    Autoblog link.
    Autoblog not a strong enough source for you?
    Try bloomberg.com or the Wall Stree Journal.

    This may void UAW contracts. Discuss.
     
  2. leekohler macrumors G5

    leekohler

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    #2
    That's too bad. I hope Chrysler can find a way to reorganize and survive. I've owned three Chryslers and they were all beautiful and great cars.
     
  3. MacNut macrumors Core

    MacNut

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  4. freeny macrumors 68020

    freeny

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    #4
    This would never happen if we were truly Socialist ;)
     
  5. obeygiant macrumors 68040

    obeygiant

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    #5
    Chrysler needs to hit the fail button. press here!

    I've owned a 1983 Chrysler New Yorker, that talked!

    and a Chrysler Pacifica and a Town and Country.

    Anyway I though that they were just about to sign a deal with Fiat.

     
  6. Galley macrumors 65816

    Galley

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  7. SLC Flyfishing macrumors 65816

    SLC Flyfishing

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    #7
    I'm not a Chrysler fan anyway. Let em die!

    All the Chrysler corporation vehicles I've ever had the misfortune of driving were absolute bombs. Even the post 87 Jeeps!

    I had an 85 Jeep CJ7 that was awesome, but that was manufactured under the AMC corporation and was solid as a rock both on road and off. As soon as Chrysler bought the Jeep brand, all the subsequent models were effectively neutered, watered down versions of the older ones.

    SLC
     
  8. stevento thread starter macrumors 6502

    stevento

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    #8
    I'm really not a fan of Chrysler either. Their current product line just does not seem to be competitive with GM and Ford. But they can't die. If you were from Detroit, you'd know the economy there is far beyond a recession. I don't think I'd go as far as to say it's a depression, but "recession" is a drastic understatement for the Detroit area.
    GM will close nearly all it's plants for 9 weeks this summer. That means Delphi and other GM suppliers are going to take a nasty hit as well.
     
  9. Sun Baked macrumors G5

    Sun Baked

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    #9
    I bet the bondholders are glad they didn't swap the debt for stock and get wiped out.

    Chrysler was offering a pittance compared to the secured creditors that manager to garner a large share of past bankruptcies.

    Though the balance between covering the bondholders and the workers (and that block of pension holdings) should be interesting.

    The fight could really get ugly.
     
  10. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #10
    Obama gave a lashing to hedge funds today for not taking a horrible deal. under bankruptcy law they are first in line so I can't say I blame them.
     
  11. stevento thread starter macrumors 6502

    stevento

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  12. MikeTheC Guest

    MikeTheC

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    #12
    So, my question in all of this is did Bob Nardelli get another golden parachute to leave Chrysler, or was Home Depot the only company actually stupid enough to have paid him $190M in stock options plus $20 million in cash to leave Home Depot?

    And also I want to know if anyone else out there in Corporate America-ville has finally learned that you shouldn't hire Bob Nardelli unless you want him to kill your company?!?

    Just askin'...
     
  13. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #13
    Charger, Challenger. Both awesome. Its a shame that management thats worthless and overpaid unions have put this company in this pickle. Get rid of the union and find a automotive lover to run the company and it will thrive.
     
  14. adroit macrumors 6502

    adroit

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    #14
    Really? Are you serious? The Charger is quite possibly THE worst car I have ever driven. And I've driven some real heaps!

    I haven't driven the challenger but the new Charger is indicative with what is wrong with Chrysler. No imagination, no performance, no quality, no care.
     
  15. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #15
    No performance? thats funny. I love my Charger. Quiet,Fast.Powerful,Comfortable,Smooth ride,Cool Looking, Awesome Stereo, and you can get fantastic deals on them.:p I love it.
     
  16. leekohler macrumors G5

    leekohler

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    #16
    I love the Charger and the Challenger. If it were sensible for me to own a car in the city, I'd have a Challenger in second. Beautiful car.
     
  17. stevento thread starter macrumors 6502

    stevento

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    #17
    The charger didn't do what it was supposed to do. It weighs too much by far. I know the wagon version of the charger was killed, not sure if the charger will be around for much longer.
     
  18. quagmire macrumors 603

    quagmire

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    #18
    Yeah, he must have driven a Charger with the 2.7 V6. Now that is a god awful engine( I had it in our families old Sebring convert). Drive a Hemi one, and you know it means business. I still prefer the G8 though. Shame Pontiac is dead. :(
     
  19. Shivetya macrumors 65816

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    #19
    I am very glad the bond holders are thumbing their noses at Obama Administration's attempt to fleece them.

    The thing I really hate about this Administration (don't get me started on the last - which started this mess at keeping the auto makers alive) is that they rely on misinformation in order to intimidate people into taking the action they want.

    As in the bond holders, many who are retired workers or retirement funds.

    I doubt they would toss out the term hedge funds, because that is exactly what his Wall Street bail out is, a bail out of hedge funds. Yet when it comes down to the small amounts needed to prop up Chrysler and GM we get all sorts of new rules for the money - at least GM and Chrysler produce actual product!

    What was going on here was an outright attempt to steal private property for the government and union. Lets see, the government "investment" is less than the bond holders yet the government wants a bigger stake? Same for share holders in GM. The government's stake is less but they want a bigger share?

    Bull. The last people who should be given control is the government, the second to last is the unions
     
  20. quagmire macrumors 603

    quagmire

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    #20
    The bondholders knew they would get screwed in a bankruptcy situation, and yet they still wouldn't find a middle ground while they had the chance. They blew it, let them burn, IMHO.
     
  21. Shivetya macrumors 65816

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    #21
    You don't understand the issue.

    The government is breaking the law and using intimidation and lies to do it.

    There are two types of debt owed by Chrysler

    To the bond holders it it secured debt, secured by property

    To the unions the debt is unsecured.


    Guess what, Obama and Co. are trying to pull one over on Americans. He is throwing the bond holders under the bus in favor of the unions because that what his party does. To hell with the law, votes are all more important.

    What this does is ruin business lending going forward, at least with any company that has a union presence. No longer will legal holders of debt be guaranteed their due process.
     
  22. quagmire macrumors 603

    quagmire

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    #22
    If this was all about getting votes, Obama would have let GM and Chrysler go under a long time ago because the majority of Americans opposed the loans.

    Again, the bondholders knew they would be screwed in Chap 11( remember the courts are in the judicial branch of gov't so Obama has no authority in the matter). Wouldn't knowing you would be boned in a Chap 11 proceeding make you more open to make a deal even if it is less then what is truly owed to you? This is the same matter as the UAW members striking down a new contract at a parts plant that they knew if it was shot down the plant will be closed and all 1400 employees would be in the unemployment line. And it was rejected with a 75% "No" vote....... Something is better then nothing......

    EDIT: Scratch that, Obama will have a say. Why? Because the gov't is the largest secured debt holder in Chrysler. So it will have the majority vote in bankruptcy. That and all TARP lenders approve of Chrysler's Chap 11 plan( which is basically GM's plan and Chrysler is being used as a test bed to see what needs to be fixed so if GM has to follow, their Chap 11 will be quicker and smoother).
     
  23. Sun Baked macrumors G5

    Sun Baked

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    #23
    Don't have much confidence in this political event, the back room events are getting rather silly.

    The union is preempting established bankruptcy law and leaping ahead in the charging order, and they don't wipe out the majority of the liability owed the union -- they get stock and are keeping a huge chunk of the liabilities intact.

    I'm still amazed, that while this was going on the Automotive Task Force is still trying to kill the Chevrolet Volt and one of GM's most profitable division as of a couple weeks ago.

    The President makes a speech about needing to take the next step in the auto industry and the administration behind him is still trying to cut off the foot trying to make that step.
     
  24. quagmire macrumors 603

    quagmire

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    #24
    Where did you hear the ATF is trying to kill the Volt? Did you mean GMC as one of GM's most profitable divisions?

    Frankly, a lot of what the media is reporting is bull and not the entire truth. And anything from GM is just PR spin. It's getting harder to sift through all the BS.
     
  25. geese macrumors 6502a

    geese

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    #25
    Interesting development:

    http://www.nytimes.com/2009/05/05/business/global/05fiat.html?_r=1&partner=rss&emc=rss

    If this did happen, then GM wouldn't have a significant presence in Europe, which is a bit barmy for any global car company. And Fiat would be huge!
     

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