Chrysler Files Chapter 11 - PeachParts Mercedes-Benz Forum

EricSilver · #1 04-30-2009, 12:16 PM

Will they survive? Or will they go the way of Circuit City?

raymr · #2 04-30-2009, 12:28 PM

The bankruptcy is to clear out remaining debt from several hedge funds that didn't want to negotiate. Chrysler and Fiat are signing the partnership deal later today or tomorrow.

I'm not sure if the hedge funds screwed themselves - I don't know much about that business. But I would think they looked at all angles before playing chicken with the fed.

SwampYankee · #3 04-30-2009, 12:54 PM

Quote:

Originally Posted by raymr

The bankruptcy is to clear out remaining debt from several hedge funds that didn't want to negotiate. Chrysler and Fiat are signing the partnership deal later today or tomorrow.

I'm not sure if the hedge funds screwed themselves - I don't know much about that business. But I would think they looked at all angles before playing chicken with the fed.

I'm curious if it effects the union contracts?

Jim H · #4 04-30-2009, 01:33 PM

Quote:

Originally Posted by SwampYankee

I'm curious if it affects the union contracts?

I'd be really surprised, and greatly disappointed, if it did not!

jplinville · #5 04-30-2009, 01:41 PM

Let's see...UAW will own 55% and Fiat will own 20%.

If the UAW owns the company that the workers they represent work for, how will the workers ever be able to strike?

raymr · #6 04-30-2009, 01:42 PM

The CAW and UAW unions are covered. In fact all the major stakeholders included a bankruptcy contingency in their deals. The whole thing seems almost too neatly done, or there are some smart cookies managing this process.

Daimler also gave up their remaining 20% share, ending that poisoned relationship for good.

SwampYankee · #7 04-30-2009, 02:11 PM

Quote:

Originally Posted by raymr

The CAW and UAW unions are covered. In fact all the major stakeholders included a bankruptcy contingency in their deals. The whole thing seems almost too neatly done, or there are some smart cookies managing this process.

Daimler also gave up their remaining 20% share, ending that poisoned relationship for good.

So it's essentially a band aid fix.

raymr · #8 04-30-2009, 02:42 PM

Quote:

Originally Posted by SwampYankee

So it's essentially a band aid fix.

I read that Chrysler Financial was hung out to dry because their management wouldn't agree to salary limits. Essentially the only ones still involved are the ones who took serious financial hits to make it happen. They also have the most to gain if things turn out well.

awsrock · #9 04-30-2009, 02:49 PM

Question asked to Robert Gibbs today:

"If Chrysler was unable to stay with Diamler, the biggest car company in the world, what makes you think Fiat will help any better" (not an exact quote)

A: "...Fiat knows how to help design fuel efficient cars that the people want"

OK, I am really getting tired of this excuse. It's nonsense! Sure, a lot of cars that the big three produce aren't great on mpgs, but they aren't necessarily awful. Hell, the old Dodge Stratus was rated 26/37 for the 4 cyl..That would be some serious competition these days..considering that the Stratus was bigger than anything that gets that now. I realize that the new EPA ratings have an effect, but even after that, it would still be somewhat impressive.

It's so silly; 10-20 years ago, most car companies offered something that got as good as, if not better, mileage than what all these new models are going around touting, as if it's never been done before.

Fulcrum525 · #10 04-30-2009, 03:14 PM

Chrysler is like a plague that infects everything it comes in contact with.......they screwed up Daimler-Benz......let them go bankrupt

awsrock · #11 04-30-2009, 03:20 PM

Quote:

Originally Posted by Fulcrum525

Chrysler is like a plague that infects everything it comes in contact with.......they screwed up Daimler-Benz......let them go bankrupt

A congressman told the CEO of Chrysler during that big hearing that they are basically leeches and only survive by "marrying" other companies and living off of them!

aklim · #12 04-30-2009, 04:16 PM

Quote:

Originally Posted by jplinville

Let's see...UAW will own 55% and Fiat will own 20%.

If the UAW owns the company that the workers they represent work for, how will the workers ever be able to strike?

In theory, what we have here is a "Fire your boss" situation. Lets see how they handle it. Hopefully, it won't suck too much blood out before it finally decides to die the death it so richly deserves.

raymr · #13 04-30-2009, 04:48 PM

Quote:

Originally Posted by aklim

In theory, what we have here is a "Fire your boss" situation. Lets see how they handle it. Hopefully, it won't suck too much blood out before it finally decides to die the death it so richly deserves.

Or employee-owner situation. Maybe it will help eliminate the adversity that existed between labor and management before. Whatever it is, the fed has now promised to plunk a few more $billion in.

The motivation to save Chrysler in the past was military contracts (they were building tanks). Now its a little less clear.

Skid Row Joe · #14 04-30-2009, 05:06 PM

Quote:

Originally Posted by Fulcrum525

Chrysler is like a plague that infects everything it comes in contact with.......they screwed up Daimler-Benz......let them go bankrupt

How was that?

aklim · #15 04-30-2009, 05:12 PM

Quote:

Originally Posted by raymr

the fed has now promised to plunk a few more $billion in.

The motivation to save Chrysler in the past was military contracts (they were building tanks). Now its a little less clear.

Will be many more billions before the company folds like it should have or can even be profitable.

I would say it is unclear.