http://www.youtube.com/watch?feature=player_embedded&v=JxvURgyJ26w

I guess it wasn't such a bad idea after all

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You're a daisy if you do.
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84 Euro 240D 4spd. 220.5k sold
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OPM

Gee, thanks for the DNC propaganda video.

Question - did they pay back the ENTIRE amount they were "loaned", or as in GM's case, was it only the 10% or so of the total amount that was actually classified as a "loan"?

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Just say "NO" to Ethanol - Drive Diesel

Mitchell Oates
Mooresville, NC
'87 300D 212K miles
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Grumpy Old Diesel Owners Club

OPM... In this case, Fiat's.
http://www.bloomberg.com/news/2011-05-24/chrysler-repays-u-s-canadian-loans-as-fiat-increases-ownership-to-46-.html

"Chrysler retired the loans by issuing new debt and using money Turin, Italy-based Fiat paid to increase its stake. The repayment comes almost two years after Chrysler emerged from U.S. government-backed bankruptcy reorganization that gave control of the automaker to Fiat. "...............


The U.S. government now owns 6.6 percent of Chrysler, the Canadian governments own 1.7 percent and a retiree health-care trust managed by the United Auto Workers union holds 46 percent, Shawn Morgan, a Chrysler spokeswoman, said in an e-mail.

The Treasury said today it isn’t likely to recover its remaining $1.9 billion investment in Chrysler.

Would FIAT have purchased Chrysler if it were just a shell?

I don't have any inside details, but from what I can see Uncle Sam provided a Bridge Loan to FIAT for the purchase of Chrysler. This allowed FIAT to secure money to pay off the loan at better terms that if it had to have the funds in a hurry.

All in all it appears to have worked out well for the US Gov. Will it work out well for FIAT is the next question.

GM 'borrowed' right at $50 Billion from the US. Last November it paid back $26 Billion and the US still holds 500 million shares of GM. GM still owes $26 Billion.

US ownership in GM was at 61%. It is currently 26%.

If GM stock hits $53 a share the US will break even. It is currently right at $30.75. If the US gov sold all of its' stock today it would bring in $15,375,000,000 and would still need to find $10,625,000,000 to be made whole.

The US government estimates 1,414,000 jobs were saved.

If these jobs pay an average of $45,000 a year, with a personal income tax rate of 15%, that is $9,544,500,000 a year in revenue to the US Treasury. So far the US has made, over the last two years, $19,089,000,000 in personal tax revenue from this deal.

Therefore, if Uncle Sam sold all of his stock today at a loss we would still be $8,434,000,000 ahead on this deal, and every year from now on stand to pick up around $10 Billion in revenue due to this 'bail-out'.

All in all not a bad days work.

The US will recover the $1.9 Billion through the personal income taxes paid by those who continue to draw a paycheck from Chrysler.

It may take a year or so.

What many critics of these deals overlook is that this was not and never could be just a normal business deal and it is wrong to look at it as such. How many banks can loan you money and then, as a part of the loan, get 15% of what you make for the rest of your life?

I think this is a concept known as Merchant Banking. The Medici family made much of their wealth this way and they became one of the richest city-state nations in the history of the world, so it seems to have worked well for them.

Why is everyone so convinced it will not work for us?

Thanks to Jeep, Durango and Ram sales.

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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
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How much interest did they pay on that loan?

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CENSORED due to not family friendly words

Because a political thing works does not make the thing a good idea, else the Patriot Act would be a brilliant bit of statecraft.

Any takers?

Wound't that just make your day.

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CENSORED due to not family friendly words

it looks to be a good deal all around to me.

In any case a democratic president could not have let them go belly up.

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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

It worked out good, glad the government invested my money so well. I'm waiting for my dividend check in the mail.

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1999 SL500
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I do not think any president or politician could have let them go under. I do not see how that could have been good for the country.

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- With out god, life is everything.
- God is an ever receding pocket of scientific ignorance that's getting smaller and smaller as time moves on..." Neil DeGrasse Tyson
- You can pray for me, I'll think for you.
- When you understand why you dismiss all the other possible gods, you will understand why I dismiss yours.

Chrysler was paying millions of dollars each day in interest alone, due the 12% rate that was part of the deal. It looks like they are coming back from the dead, but will they learn from the past? I think with less of the short-sighted American style management that got them in trouble to begin with, and no more German starvation diet, they have a pretty good shot. Marchionne is a sensible guy.

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1985 380SE Blue/Blue - 230,000 miles
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