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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: dtownfb (May 03, 2009 12:26 pm)
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Replying to: kernick (Apr 02, 2009 8:58 am) |
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Replying to: berri (May 03, 2009 3:37 pm) The longer they are in bankruptcy, the easier it will be for Fiat to walk away from this deal. |
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There may be a wrench in the works... Some secured lenders object to quick sale of Chrysler May 4, 2009 - 10:12 am ET UPDATED: 5/4/09 10:58 a.m. ET NEW YORK -- A minority group of Chrysler LLC secured lenders has objected in bankruptcy court to the quick sale of Chrysler to a new corporate entity led by Fiat S.p.A. The group of about 40 banks and hedge funds holds about $3 billion of the $6.9 billion in secured loans that Chrysler has with the banks. ....Chrysler's new corporate entity, led by Fiat and its proposed 20 percent stake, would be considered the lead bidder for Chrysler's assets in a bankruptcy court auction. The automaker asked U.S. Bankruptcy Judge Arthur Gonzalez to set a hearing as soon as May 21 to approve a $2 billion sale of most of its assets out of bankruptcy that would clear the way for a merger with Fiat, according to documents filed with the court. The court has set a May 15 deadline for competing bids, according to Bloomberg News. http://www.autonews.com/article/20090504/ANA02/905049986/1128 (registration link) Just further evidence that this whole 30-60 day timeline is pure fantasy. The debtholders are going to be fighting over this one for a loooong time.....
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Replying to: nippononly (May 04, 2009 8:59 am) It's a difficult timeline but strange things happen in bankruptcy court. And they said that the 30 day deadline to put a deal together with Fiat was fantasy too, so .... The judge did Enron and WorldCom and even better, did a few years with the IRS. Sorting out Chrysler may be a cakewalk after the IRS years.  (WSJ - Chrysler Bankruptcy Judge Handled Enron, WorldCom)
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"Chrysler's "Employee Pricing Plus Plus," program ended just days after the carmaker declared Chapter 11 bankruptcy. That program combined cash rebates with price reductions and cut-rate financing for qualified customers. The new sales program is expected to rely heavily on giving dealers cash incentives, which means that customers will see big price reductions at the dealership, said Jessica Caldwell, an industry analyst with the automotive Website Edmunds.com." "Not everyone sees bankruptcy as a disaster for Chrysler sales. Some customers are optimistic, focusing more on the possibility of a Fiat deal and on the fact that Chrysler isn't going out of business, said Scott Painter, chief executive of Zag.com, an automotive buying service provider, and Truecar.com, an auto pricing Website. Interest in Chrysler, Dodge and Jeep products has actually gone up, he said." New Chrysler auto incentives coming (CNN) |
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Bankruptcy will delay Chrysler's 2010 model launches, exec says By DAVID BARKHOLZ "A picture of The Chrysler Town & Country minivan--and all 2010 models will be delayed because of the automaker's Chapter 11 filing. ChryslerChrysler LLC will be late getting its 2010 vehicles to market because of the automaker's Chapter 11 bankruptcy filing, Chrysler manufacturing chief Frank Ewasyshyn testified today. The current shutdown of plants and stresses on suppliers also threaten to delay the 2011 models next year, Ewasyshyn said. The changeover to 2010 models is delayed while Chrysler tries to emerge from bankruptcy within the next 30 to 60 days, he said. Once Chrysler returns to production, planned as an alliance with Fiat S.p.A., the new company will have to finish assembling the many vehicles, engines and parts now partially built in Chrysler factories, Ewasyshyn said. That and readying for the new models will delay 2010 launches. Those typically take place shortly after a July shutdown to change tooling for the new vehicles. Ewasyshyn said the smooth launch of 2011 models also is jeopardized. Some suppliers are balking at sending the tooling and parts that need to be validated now in order to build the 2011 models. He was testifying in support of the bankruptcy court allowing Chrysler to pay suppliers for the nearly $1.71 billion that Chrysler owes them for parts already shipped."
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Replying to: hpmctorque (May 05, 2009 2:02 am)
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Replying to: reality2 (May 05, 2009 2:39 pm) Chrysler was managed by Daimler who had one motive, build the vehicles as cheap as possible and charge as much as the public will pay. Under Daimler such vehicles as the Jeep Compass for example were created as cheaply as safety would permit. Even with cheap materials and poor fuel mileage Daimler really expected the American buying public to flock to the dealers. Daimler scraped every dime they could get out of Chrysler and then dumped it. Chrysler has a majority of low fuel mileage vehicles. For instance the Dodge Neon got an honest 30 + mpg. The vehicle Daimler replaced it with the Caliber is bulky, over weight, and quality of materials and fit and finish are one of the lowest in the automotive industry. The Caliber gets no more than 27 + or - mpg. Daimler went backwards in every area. What is confusing is how a 2007 Chrysler Pacifica Touring AWD with the new 4. L engine and 6 speed auto can get 24 to 26 mpg and a Jeep Compass only 22 mpg. Daimler did produce a top quality safe vehicle in the Pacifica. But why didn't Daimler carry this quality over into other Chrysler vehicles? I hace owned 17 Chrysler made vehicles (Plymouth, Dodge, and Chrysler) for a good long time. I have had good luck and I have been pleased except for a Jeep Liberty diesel and the Jeep Compass. Does Chrysler stand a chance? I hope so. Will Fiat be the means to keep Chrysler alive? I have some real doubts, Fiat has made some real unhappy owners in the past with low quality vehicles imported to the US some decades ago. Unless the quality and needs of the public are top on the list Chrysler may well go into history as AMC and Studabaker did. I surely hope not. farout |
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Chrysler offers up to $6,000 in incentives on some cars If consumers can overcome the connotations that ride shotgun with buying a new car from an automaker in bankruptcy, there are some deals to be had on Chrysler vehicles. The company said Wednesday that it will offer up to $6,000 in incentives on some of its new cars in May in the wake of a 48 percent sales drop in April. The incentives run through June 1. Starting Wednesday, buyers can get $4,000 in consumer cash on most 2009 models, $1,000 owner loyalty for current Chrysler owners on most ’08 and ’09 models and another $1,000 in credit-union bonus cash for those who finance through certain credit unions. http://www.autoweek.com/article/20090506/CARNEWS/905069973 If you still want that Hemi, now's the time to buy! Once Marchionne is the CEO, who KNOWS what will be going on! 
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