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Automotive News & Views Can Chrysler Turn It Around in Bankruptcy?
464 messages, Last post on Oct 02, 2009 at 2:05 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: lemko (Apr 02, 2009 9:13 am) If manufactures go under - the unemployment numbers for the past 3 months would be considered good months. There were very good reasons for the panicked $700B bailout by Paulson and Bush (at least how it was explained to me by a person with absolutely no political affiliation). They should have put more strings attached and thought it out longer. But it was an emergency bill and hindsight is 20/20. At least with the banks there is a good chance we will get the money back. I don't see GM or Chrysler able to pay back these loans. |
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"It's easy to think that Chrysler LLC is no longer too big to fail. The embattled automaker has already cut its U.S. workforce by more than 60% since the start of the decade, leaving it with just under 39,000 employees in America. To put that into context, that's only five thousand more people than electronics retailer Circuit City had when it went out of business this year -- and few thought the demise of Circuit City would cripple the economy." Why Chrysler matters (CNN Money)
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of course we have discussed that on here before, letting the Big 3 fail. But the current leaders fear that too many related jobs will also be lost. Trickle down economics, or, not. Looking at it practically, letting them fail seems much simpler. Even without bankruptcy and reorganizining them for a stronger, leaner, meaner Company. Go to another industry and just leave the carbuilding to the Japanese, Germans and Koreans. See how nasty that can sound? Nationalism can have some strong tentacles to it. |
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Replying to: steve_ (Apr 02, 2009 12:59 pm)
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Replying to: nippononly (Apr 02, 2009 9:38 pm) |
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Chrysler filed Chapter 11 yesterday after much anticipation. Now they are working on getting motions before the bankruptcy court for a "fast, surgical reorganization." They were fast in working things out with the UAW and the Fiat tie-in, but 30 to 60 days to get a bankruptcy plan approved would be really fast. Chrysler Bankruptcy: It's Official as Case No. 09-50002 (AutoObserver) Chrysler Plants Shut Down Until Bankruptcy Over; CEO Nardelli Out (AutoObserver) Can they do it? And will it last?
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Replying to: steve_ (May 01, 2009 8:43 am) Can they do it? And will it last? Not sure. the debt holders look like they are digging in (at least a few are). Fiat can walk away from this deal anytime.
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Replying to: dtownfb (May 01, 2009 9:55 am) That's the biggest problem, IMO. I love how this is a debtor-in-possession, with the U.S. government the one being in possession (using our taxpayer money), only to turn around once the BK is resolved and hand the whole thing to investors and Fiat, without a penny of return on our money. They should have liquidated this turkey.
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Replying to: nippononly (May 01, 2009 11:15 am) |
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Replying to: hpmctorque (May 01, 2009 7:05 pm) In the end, I don't see GM making it either. If I were GM, after watching Chrysler negotiate with their bond holders, I would be very afraid. GM has about 8 times more debt than Chrysler.
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