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Economy

Chrysler bankruptcy filing confirmed

2009-05-01

[Iran Press TV Latest] US President Barack Obama confirms that troubled automaker Chrysler will file for bankruptcy protection, adding that the company will emerge from the process quickly.

President Obama threw his weight behind the nation's third largest automaker on Thursday, adding that his administration would take necessary measures to give the struggling company "a new lease on life".

In brief remarks at the White House, President Obama also revealed that Chrysler completed its long-waited deal with the Italian carmaker Fiat. "Today, I am pleased to announce that Chrysler and Fiat have formed a partnership that has a strong chance of success," said the American president.

Two crappy, government-supported, under-capitalized automakers come together to make and sell cars. What could possibly go wrong ...

The troubled 85-year-old automaker will enter into bankruptcy after failing to reach a settlement with lenders on a 7-billion-dollar loan on Thursday.

The Canadian and Italian governments have also vowed to help the company. Canada says it is allocating 2.4 billion dollars to the automaker to help its restructuring process.

Italian Industry Minister Claudio Scajola spoke in support of the partnership deal between Chrysler and Fiat and said he would try to facilitate talks between Fiat and Italian trade unions regarding the deal.

On Tuesday, a group of Chrysler lenders with a total of one billion dollars in debt announced that they are in talks with the US Treasury to reduce the company's debt. "We are continuing to discuss our position with the United States Treasury," the 20-member group said in a statement.

Posted by:Fred

#18 Chrysler is too far gone to save, even with C11. Fiat will keep Jeep and sell everything else.

To who?

Nobody. Perhaps the properties can be sold to other car companies looking to expand, but the Chrysler brand itself, unless there's some great autos in the works has no value.

With the exception of Dodge trucks and the Jeep line, they're in a bad way.

Posted by: Mike N. 2009-05-01 23:58

#17 Supporting Good Regulation does not mean supporting Lefties.

I believe this a sub-paragraph of the "Third Tenet of Populism".

Posted by: Pappy 2009-05-01 22:22

#16 Moron, OK?

We've got a live one, folks. Hopefully you used barbless hooks with non-toxic moron-bait

Posted by: Frank G 2009-05-01 20:20

#15 Regulation caused the credit bubble you fool.

Have a read of Basel 2 and see that regulating a reserve level of zero = infinite credit.

Posted by: Bright Pebbles the flatulent 2009-05-01 18:38

#14 I think Chrysler's product line will do well once consumer confidence revives. Structural adjustments are already in play. The UAW has the money to sustain them. Every dollar sent to Chrysler will be paid back with dividends.

Structural adjustments??? You mean how the government forced secured lenders to take a bath to the benefit of the UAW? And, pray tell, how will the UAW suddenly learn how not to drive the company with which it is associated into bankruptcy? And finally, tell me about all those cutting edge Chrysler models that folks are going to break down the door to buy.

You are in dreamland pal.

Posted by: remoteman 2009-05-01 16:53

#13 I think Chrysler's product line will do well once consumer confidence revives. Structural adjustments are already in play. The UAW has the money to sustain them. Every dollar sent to Chrysler will be paid back with dividends.

How was Madoff able to Ponzi billions, in face of red-flags?

Why was Enron able to sell by prospectus, based on purely subjective projections of earnings?

In which month of 2002 did the sub-prime mess begin - and it can be positively dated - and what political affairs conditioned the spree of tossing capital into non-viability pits?

Supporting Good Regulation does not mean supporting Lefties.

Posted by: Jans Wittlesbach2039 2009-05-01 16:02

#12 Chrysler is too far gone to save, even with C11. Fiat will keep Jeep and sell everything else.

To who?

Posted by: Redneck Jim 2009-05-01 12:13

#11 A VC I knew once remarked that you tie two rocks together but they still won't float.

Posted by: DoDo 2009-05-01 11:37

#10 So, is it ok to say now that GM stands for Government Mule?

Capitalism encourages unequal production with the idea that someone will make an item in a better way. Socialism is based on the lowest common denominator - factor in that there seems to be no limit to stupidity then there you go.

It is the natural order of organisms to evolve or become extinct. This dog should've been put down long ago and would have already been reborn - by prolonging the process ya prolong the pain and rebirth.

Let's go to imaginationland - your car breaks down, so now you have a federal paperwork problem. I have no transportation, so I have to bum a ride from someone to go to the courthouse to pick up forms for warrenty claim, or a lawyer. Say that it is streamlined so all I have to do is go to the DMV and stand in line with everyone else who has a warrenty claim. The DMV is a pain is the ass already, so now its completely overcrowded. The work burdon is overwhelming, so either the gov hires more people and new facilities to handle the load - which of course means more gov, see taxes increased, or stays the same and muddles its way though a disparaging 'stopping the tide with a bucket' work load and becomes a morale killer for the employees. And that is just for fixing an alternator...not getting treatment for a broken arm.

No. Thanks.

Posted by: swksvolFF 2009-05-01 10:57

#9 Yup, if I were a B of A shareholder I'd be planning a lawsuit and my demands for interrogatories and depositions ...

Posted by: Steve White 2009-05-01 09:06

#8 401k's? Wow, you are clueless.

Posted by: AllahHateMe 2009-05-01 09:01

#7 Not to mention that lovely "forced marriage" that B of A got stuck with, courtesy of Paulsen. Funny how Cuomo has been mighty quiet about it as of late. I wonder why.

Care to try again, Jans?

Posted by: Cornsilk Blondie 2009-05-01 09:00

#6 sub prime loan contracts

Seems a couple of government agencies [not free market] were deeply involved in these, along with Congressional muscle to 'encourage' lending institutions to launder the product. If the government wasn't involved, most parties would likely be facing RICO indictment.

Posted by: Procopius2k 2009-05-01 08:04

#5 Jan, wrong.

Zero intervention means these things would have died long ago. Stop attributing to capitalism things that were caused by government interference. C.f. Fanny Mae and Barney Frank + Chris Dodd. Also see the laws allwoing unions to become the fat leeches they are with the force fo government threat behind them.

Government arguably made things FAR worse.

If you want government control, go ask someone that lived in eastern Europe about how well that worked.

Posted by: OldSpook 2009-05-01 08:03

#4 More nationalization. The UAW - whose members take 7% of costs of car production in union plants - wants to use their pension funds as bonded (guaranteed by government) financial control tool.

Lesson: zero regulation capitalism means zero control over creation of dubious finance products (401 Ks, junk bonds, sub prime loan contracts, derivative markets, etc). Zero financial product control means that funds will flow to unviable investments.

Tag anyone who believes that capitalism will produce balanced development if it is completely self-regulated, with the Moron label.

Posted by: Jans Wittlesbach2039 2009-05-01 07:03

#3 ...Chrysler is too far gone to save, even with C11. Fiat will keep Jeep and sell everything else.

Mike

Posted by: Mike Kozlowski 2009-05-01 06:15

#2 "Industry minister"

We are living in truly evil times, folks.

Posted by: no mo uro 2009-05-01 06:01

#1 ION POTUS BAMMER, ISRAELI MIL FORUM > CULTURE OF SURVEILLANCE: OBAMA'S SECRET PLAN TO COPY AND CONTROL THE CONTENTS OF YOUR PERSONAL COMPUTER [ vee COPYRIGHT ACT].

Posted by: JosephMendiola 2009-05-01 00:41

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