Latest Chrysler News

[MoparDan]

From the AllPar Site

http://www.allpar.com/news/index.php/2009/04/rays-of-sunshine-in-chrysler-march-sales/
Rays of sunshine in Chrysler March Sales (http://www.allpar.com/news/index.php/2009/04/rays-of-sunshine-in-chrysler-march-sales/)

April 1st, 2009
by Bill Cawthon
Top news for Chrysler fans: GM has out-slumped Chrysler and now has the worst sales record of the Big Six automakers. Chrysler sales were down 39.3 percent in March compared to a 40.8 deficit at Ford and a 44.7 percent plunge at GM. In year-to-date (YTD) sales, Chrysler’s shortfall is 45.5 percent, trailing Ford’s 43.3 percent but ahead of GM’s 48.8 percent dive compared to March 2008. Incidentally, Chrysler’s estimated average incentive was just $91 more than GM’s new record.
Chrysler’s shortfall was the smallest since last October.
The Caravan (http://www.allpar.com/model/m/minivans.html) and Town & Country were nos. 1 and 2 in the minivan segment and now lead the Odyssey and Sienna in both monthly and YTD sales.
The Jeep (http://www.allpar.com/model/jeep/jeep-history.html) Wrangler (http://www.allpar.com/model/jeep/wrangler.html), with 10,000 sales, not only outsold every traditional body-on-frame SUV, it outsold every light GM truck except the Chevy Silverado.
Chrysler LLC (Chrysler, Dodge & Jeep (http://www.allpar.com/model/jeep/jeep-history.html)) sold more light trucks than Ford Motor Company (Ford, Mercury, Lincoln and Volvo).
================================================== =====

http://www.allpar.com/news/index.php/2009/04/chrysler-march-sales-break-100k/
Chrysler’s March U.S. sales break 100K (down 39%) (http://www.allpar.com/news/index.php/2009/04/chrysler-march-sales-break-100k/)

April 1st, 2009
by Bill Cawthon
Chrysler today reported March U.S. total sales of 101,001 units, which is the first time since Sept. 2008 that the Company has surpassed 100,000 units, albeit at a a 39% decrease versus 2008. Retail market share stayed steady, at an estimated 10.0% versus 9.9% in March 2008. Total March sales include a fleet reduction of 44% year-over-year for the same period.
“The market is starting to show small signs of life which need to be nourished like seedlings,” said Jim Press, Vice Chairman and President, Chrysler LLC. “The fact that we exceeded 100,000 units for the first time since last fall is encouraging, and evidence that our improved quality, improved mileage as well as value represented in Employee Pricing Plus Plus are just what the doctor ordered for recession-wary customers who are reluctant to make long-term purchases. It’s too early to see a trend, but spring shows signs of hope.
“It’s business as usual as we stay focused on our customers and dealers, listening to what they have to say and building their confidence and trust,” Press added. “The U.S. government provided a critical vote of confidence in the Company’s alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA. The Administration’s announcement gave Chrysler a clear path to finalize plans for the future. Moving forward, our goal is to translate the confidence to our customers through our continued focus on quality, reliability and service.”
According to Press, “Our internal warranty data shows that we have achieved the lowest claim rate in our Company’s history, with a 30 percent improvement in the last 12 months. And reinforcing the Company’s improved quality and customer satisfaction initiatives, as reported by the National Highway and Traffic Safety Administration, Chrysler had the industry’s lowest number of recalls in 2008. We attribute this to a focus on designing and building in quality during previous years.”
The Company finished the month with 349,612 units of inventory, or an 87-day supply. Inventory is down 17 percent compared with March 2008, when it totaled 423,607 units.
Chrysler LLC will extend through April 30 the Employee Pricing Plus Plus program, which offers the employee price to all customers purchasing or leasing a new Chrysler, Jeep (http://www.allpar.com/model/jeep/jeep-history.html) or Dodge vehicle. With feedback from our dealers, they brought back 0% for 48 months through Chrysler Financial on select products to provide qualified customers with more financing options (or flexibility). In addition, customers are eligible for cash discounts of up to $3,500 for 2009 model year vehicles.
To celebrate the 25th anniversary of the Company’s minivans (http://www.allpar.com/model/m/minivans.html), customers can add at no change a DVD player on Chrysler Town & Country or Dodge Grand Caravan (http://www.allpar.com/model/m/minivans.html).
================================================== =====
Note: There was a summary table for sales but it wouldn't format properly on this post.

[ccbatson]

All automakers are tanking for sales right now, these reports are a spin to reduce anxiety and its' effect on the markets.

[MoparDan]

Well friggin' hell! Can't format that table without it going whacked in a heartbeat. Here are sales figures from CNBC that are probably going to wind up looking like gobbledygook!
http://www.cnbc.com/id/29995742

TABLE-Chrysler March U.S. vehicle sales off adj. 36.9 pct



By: AFX | 01 Apr 2009 | 02:38 PM ET


April 1 (Reuters) - Following are Chrysler LLC U.S. sales of cars and light trucks in March 2009 versus the same year-earlier month and for the year to date. March 2009 March 2008 % Change All Vehicles 101,001 166,386 -36.9% Domestic Car 23,618 48,149 -49.0% Domestic Truck 77,333 118,047 -31.9% Import Car 50 190 -72.6% Import Truck 0 0 N.A. Dom+Imp Cars 23,668 48,339 -49.1% Dom+Imp Trucks 77,333 118,047 -31.9% Domestic Vehicles 100,951 166,196 -36.8% Imported Vehicles 50 190 -72.6% Yr-to-Date Prev Year % Change All Vehicles 247,208 453,871 -44.8% Domestic Car 58,056 145,139 -59.5% Domestic Truck 189,007 308,270 -37.9% Import Car 145 462 -68.2% Import Truck 0 0 N.A. Dom+Imp Cars 58,201 145,601 -59.5% Dom+Imp Trucks 189,007 308,270 -37.9% Domestic Vehicles 247,063 453,409 -44.8% Imported Vehicles 145 462 -68.2% ------------------------------------------------------------- Percent changes are based on the daily sales rate, and reflect 25 selling days this month vs. 26 in the month last year, and 75 this year to date vs. 76 last year to date Includes Chrysler, Dodge and Jeep brands ((--Chicago Newsroom, 312-408-8720) .

[ccbatson]

Short term strategies for surviving as an independent/non governmental automaker:

1. Downsize to ride out the sales slump.
2. Play hardball and break the unions.
3. Play hardball and reverse nonsensical punitive legislation aimed at the agenda of the green movement.
4. Get back to the business of making the products customers want to buy at the lowest price possible.

[MoparDan]

http://www.allpar.com/news/index.php/2009/04/chrysler-canada-sales-rise-4/

Chrysler Canada sales rise 4% (http://www.allpar.com/news/index.php/2009/04/chrysler-canada-sales-rise-4/)
April 2nd, 2009
by DaveAdmin
Chrysler Canada today announced sales of 15,937 units, an increase of 33% compared with the February 2009 total of 12,015 units, and 4% over March 2008 sales.
General Motors saw car sales plummet by 39%, but truck sales rose by 2%, resulting in an overall 17% net loss - enough for General Motors to stay Canada’s top seller.
Toyota (http://www.toyoland.com/), which continues to make gains against GM and Ford, saw sales drop by 23%; a Toyota (http://www.toyoland.com/)-brand drop of 26% was countered by higher Lexus sales. Ford sales fell by 15%, with trucks taking a heavier hit, but market share increased; the new Fusion sales increased. Honda brand sales fell by 20%, Acura by 42%, and Nissan by 9%.
The Dodge Grand Caravan (http://www.allpar.com/model/m/minivans.html), Chrysler’s best selling vehicle in Canada, experienced its best March ever, with sales of 3,775 units, a year to year increase of 4% and a 35% gain from last month. In March, the 2006 Dodge Caravan (http://www.allpar.com/model/m/minivans.html)/Grand Caravan (http://www.allpar.com/model/m/minivans.html) captured the top spot in the van segment in the J.D. Power and Associates 2009 Vehicle Dependability Study. The Caravan (http://www.allpar.com/model/m/minivans.html) posted perfect scores in the study in three categories: overall, body and interior and features and accessories.
The Dodge Journey remains the top-selling crossover in Canada, with sales of 1,349 units. Dodge Ram (http://www.allpar.com//model/ram/2009-ram.html) recovered from February sales with a 51% February-to-March hike.
The “Canada’s Choice” event has been enhanced by an additional $500 on most vehicles. This incentive program provides as much as $2,000 in added value on Mopar® accessories, extended service plan, no-charge options or bonus cash rebate. Sales have also been spurred by cash discounts of up to $12,500, with a substantial increase on some models from February, made possible by favorable exchange rates.
Discounts on the AJAC Pickup Truck of the Year, the 2009 Dodge Ram (http://www.allpar.com//model/ram/2009-ram.html) 1500, have been increased by $2,000 for the month of April. This vehicle has the 390 horsepower HEMI® V-8, exclusive rear link coil suspension, and optional RamBox™. The Chrysler Sebring sedan and Dodge Avenger (http://www.allpar.com/cars/dodge/avenger.html) discounts have been increased by up to $2,000, and the 2009 Jeep (http://www.allpar.com/model/jeep/jeep-history.html) Grand Cherokee incentive has increased by up to $6,750 this month.
Chrysler Canada also continues to provide zero percent purchase financing up to 60 months in addition to cash discounts up to $5,750 plus Canada’s Choice Discounts up to $2,000.

[MoparDan]

http://www.allpar.com/news/index.php/2009/04/jeep-unveiling-set-for-new-york-auto-show/

Jeep unveiling set for New York Auto Show (http://www.allpar.com/news/index.php/2009/04/jeep-unveiling-set-for-new-york-auto-show/)

April 3rd, 2009
by DaveAdmin
Chrysler is expected to unveil the 2010 Jeep Grand Cherokee (http://www.allpar.com/trucks/jeep/2011-cherokee.html) at the 2009 New York Auto Show (http://www.allpar.com/history/auto-shows/ny-2009.html) on April 8 at 10 am; the company will be broadcasting the unveiling by satellite (http://www.allpar.com/model/satellite.html). Also rumored is the launch of the 2010 Chrysler 300C (http://www.allpar.com/cars/chrysler/300C.html).

The show will be open to the public from April 10th through April 19, 2009. For details, see our 2009 New York Auto Show page. (http://www.allpar.com/history/auto-shows/ny-2009.html)

[Bigb23]

Not to be off topic, but GM seems to be in a better position than Chrysler, but could still be de - listed from the Dow Industrials. I hope the politicos that sponsored this mess, enjoy their retirement.

[MoparDan]

BigB, I believe both companies will get loans, but it will be at a cost. GM is going to wind up shedding a few divisions. The Fiat deal may be Chrysler's last saving grace. I doubt the Obama administration wants either one to go into Chaper 11; the real vocal proponents of that route are the senators of Redneck Nation.

As far as the stock goes...chances are the majority of shareholders would lose their investment & then some should it get delisted or file for bankruptcy. When it was hovering around $10, I was very tempted to buy in. Seriously, who would've though the mighty General would drop below $3? Fact is stranger than fiction.

[ccbatson]

Not bad, and the picture looks like it is rigged to be the next SRT8....Could it be?

[MoparDan]

From the 2010 Jeep Grand Cherokee article:
"Ryan, another established source wrote, “I can tell you a few things that are certain. Jeep will be moving the Grand Cherokee to the North Jefferson plant, along with the Durango. Both vehicles are already done being designed, and production starts in the spring I believe [this may indicate the Grand Cherokee will be a 2010 model]. Both vehicles will be quite different than what they are now. The Aspen will be kicked because for some reason, people still like Escalades better.” He agreed on the Phoenix, put in the new Hemi at 380 hp, and suggested an SRT model."

On the 300C article, the rumor is they're expecting to eventually use the 392cid (6.4L) Hemi engine. Currently you can get that as a crate motor; in the 50s & 60s, drag racers used them before the the advent of the 426.

http://www.bouchillonperformance.com/images/P5153605_smaller.jpg


If they can manage to stay afloat it seems some pretty wicked stuff is coming down the pike. And if the merger with Fiat goes well...maybe even some decent small cars that will sell.

[ccbatson]

380 for the base V8 hemi?? I hope it isn't vaporware.

[MoparDan]

380 for the base V8 hemi?? I hope it isn't vaporware.

The current 6.1L Hemi which powers the SRT models puts out 425HP. I'm led to believe they're referring to the 5.7L which is currently the base Hemi & puts out roughly 370+HP.
If they're actually planning to use the 392cid(6.4L), the crate motor version pushes around 525HP. For street use it would have to be detuned to make it feasible for a daily driver. How much the MDS would actually aid in MPG on something like that is probably left to some engineer in a backroom somewhere.
A link to Mopar Crate Motors: http://www.mopartsracing.com/parts/blocks.html

[ccbatson]

Detuned from 525 comes to?? The 6.1 is already 425 (as you point out).

I thought the current 5.7 was more like 330-340hp.

[MoparDan]

Detuned from 525 comes to?? The 6.1 is already 425 (as you point out).

I thought the current 5.7 was more like 330-340hp.

About the detuning, I'm basing it on the original 426 Hemi which was modified for street use back in the 60s. Even though it kept the 425HP rating, I believe it went from solid lifters/cam to hydraulic so daily use wouldn't be such a pain in the ass. I'm just speculating on what they'll do with the 392...it wouldn't surprise me if they dropped it to sub-500. One aspect may be the perception by the public at large having a cow over it. Then again they may keep it at 525 just because it's pretty outrageous.
The 5.7 had a rating one time of 345HP...I'll have to research it some more, but the last figure I saw was 372HP.

[ccbatson]

Hard to compare the precomputer/fuel injected solid lifter monsters to today's powerplants.

[MoparDan]

Hard to compare the precomputer/fuel injected solid lifter monsters to today's powerplants.

Exactly & that's why I'm saying it's speculation on my part. The angle I'm looking at is the PR over such a high HP engine in a production model; particularly in the current atmosphere where the US Auto Industry is concerned. We'll just have to see how things unfold.

[MoparDan]

http://www.allpar.com/news/index.php/2009/04/chrysler-selects-battery-maker/ (http://www.allpar.com/news/index.php/2009/04/chrysler-selects-battery-maker/)

Chrysler selects battery maker (http://www.allpar.com/news/index.php/2009/04/chrysler-selects-battery-maker/)

April 6th, 2009
by Bill Cawthon
Chrysler has selected A123Systems to supply batteries for the first ENVI electric vehicles due to make their debut next year.
“This is a great example of two American companies working together to put cutting-edge technology on the road,” said Frank Klegon, Executive Vice President-Product Development, Chrysler LLC. “The most significant challenge to electric vehicles is battery technology. The diligent selection of strategic partners like A123Systems helps Chrysler achieve its leadership in electric-drive systems and vehicles.”
A123Systems, based in Watertown, Massachusetts, will produce next-generation Nanophosphate-Lithium ion batteries, including the cells, modules and packs, at a new facility in Michigan.
“We’re very proud to have been selected to supply advanced battery systems for Chrysler’s family of ENVI electric-drive vehicles,” said David Vieau, President and CEO of A123Systems. “This bold move by Chrysler changes the game and greatly improves our country’s ability to modernize our transportation fleet. We’re confident that our collaboration with Chrysler will serve as proof that American innovation is alive and well and ready to lead the new global market for fuel-efficient electric vehicles.”

[MoparDan]

http://www.allpar.com/news/index.php/2009/04/jalopnik-aev-working-on-j8-package/ (http://www.allpar.com/news/index.php/2009/04/jalopnik-aev-working-on-j8-package/)

Jalopnik: AEV working on J8 package? (http://www.allpar.com/news/index.php/2009/04/jalopnik-aev-working-on-j8-package/)

April 6th, 2009
by DaveAdmin
Jalopnik reports (http://jalopnik.com/5196148/aev-working-on-jeep-wrangler-j8-unlimited-military-package) that AEV, a customizing house that recently expanded their facilities, may be working on a customized Jeep (http://www.allpar.com/model/jeep/jeep-history.html) Wrangler (http://www.allpar.com/model/jeep/wrangler.html) Unlimited that includes Jeep J8 (http://www.allpar.com/SUVs/jeep/J8.html) features. They have numerous spy shots of an AEV-tagged Jeep (http://www.allpar.com/model/jeep/jeep-history.html) Wrangler (http://www.allpar.com/model/jeep/wrangler.html) with military gear and manufacturers’ plates; the vehicle has rear leaf springs, like the J8 (but not regular Wranglers), not to mention J8 badging. Jalopni (http://jalopnik.com/5196148/aev-working-on-jeep-wrangler-j8-unlimited-military-package)k wrote that they are expecting more information from Michael Chetcuti at AEV.

[ccbatson]

Earlier, it was mentioned that the company that bought Saleen was considering Viper, but I just heard that they are looking to sell Saleen to someone else...What gives?

[MoparDan]

Earlier, it was mentioned that the company that bought Saleen was considering Viper, but I just heard that they are looking to sell Saleen to someone else...What gives?

Concerning the Saleen story:
http://www.autoblog.com/tag/saleen+viper/

About the Viper:
From Allpar
"Dodge is shopping the Viper to a new owner which will build and market the car when its Dodge life ends. The Firepower (http://www.allpar.com/cars/concepts/firepower.html) (a Hemi-powered, Viper-chassis Chrysler) appears to be a goner. "

From the Autoblog site:
http://www.autoblog.com/2009/02/04/chrysler-has-three-offers-for-viper/
Chrysler has been out shopping its Viper line (http://www.autoblog.com/2008/08/27/report-chrysler-may-sell-the-dodge-viper-rather-than-kill-it/) since August of last year, and reports now indicate that there are at least three interested parties that have made offers for America's other sports car. So far, there's no word on who those suitors may be, but past rumors (http://www.autoblog.com/2008/09/14/saleen-roush-potential-buyers-for-expandable-viper-range/) had indicated that both Saleen (http://www.autoblog.com/tag/saleen) (not likely (http://www.autoblog.com/2009/02/02/breaking-saleen-inc-sells-off-most-of-its-assets/)) and Roush (http://www.autoblog.com/tag/roush) were interested.
When the announcement was initially made that the automaker was considering offloading Viper as a brand. The prevailing thought was that the move could save the car from extinction; now, the tables have turned and it's generally acknowledged that Viper's sale may actually help save its struggling parent company. The income from selling the sportscar unit could help bolster the report due to Congress by the end of March regarding Chrysler's long-term viability, but the automaker doesn't expect to have anything finalized by D-day.
================================================== ====

The Viper is built at the Conner Ave plant. If it's sold off to someone else to build & sell, is that plant going to be shut down or will it be part of the deal? I don't think Detroit needs another ruin.

[MoparDan]

Is this going to wind up being one more ruin?

http://www.allpar.com/corporate/factories/PROC.html

Plymouth Road Office Complex (PROC)
The Plymouth Road Office Complex (PROC), currently home to part of Jeep (http://www.allpar.com/corporate/factories/PROC.html#)/Truck Engineering, has had over 80 continuous years of use by Kelvinator (as an appliance factory), AMC, and Chrysler. The picturesque complex in an unsavory section of Detroit has multiple buildings, with 1.5 million square feet of space on 50 acres; that includes 370,000 square feet of R&D space, 500,000 square feet of engineering/computer room space, warehousing, and administrative/office space. The complex also has a health activity center, auditorium, and cafeteria. The asking price appears to be $10 million.
The PROC on 14250 Plymouth Road was first put up for sale in 2007.
Development of various Jeeps (http://www.allpar.com/corporate/factories/PROC.html#) (excluding the Patriot/Compass) and the Dodge Ram and Durango was centered at PROC. In 2007, over 1,600 people worked in the complex (down from 1,900 in 2005).
PROC was built in 1926, to make Kelvinator refrigerators. In 1937, when Nash and Kelvinator merged, the combined company's headquarters was in the main building. Hundreds of helicopters were made there during World War II.
In 1954, when Hudson and Nash merged, PROC became AMC's headquarters, until 1987, when AMC was purchased by Chrysler. At that point, PROC became the central engineering location for all corporate trucks and SUVs, a position it held until now.

[MoparDan]

http://www.allpar.com/news/index.php/2009/04/canadian-plants-reopen/

Canadian plants reopen
April 7th, 2009
by DaveAdmin
Chrysler’s Windsor minivan plant and its Brampton car plant in Ontario are both operating today, following a parts shortage that caused a temporary closure starting on April 1 and April 2 respectively. The plants, together, employ around 8,000 people.

A provincial court ordered supplier Transcast Precision to provide Chrysler with any parts already made as well as its tooling for engine and transmission brackets; Transcast had stopped delivering parts to the plants, and hid the tooling when Chrysler tried to install it in the Etobicoke, Toronto casting plant.

[ccbatson]

I don't see how buying Viper makes any sense for anyone right now. CAFE standards will jack the price up far north of what customers are willing to pay for it.

[MoparDan]

http://news.yahoo.com/s/ap/20090408/ap_on_bi_ge/auto_show_chrysler

Chrysler president: 30 days enough for Fiat deal

[jiminnm]

CC, with a current MSRP of $90-95K, I think the Viper has already entered the realm of those who aren't real price sensitive about buying the kind of cars they want.

[jiminnm]

Dan, I expect you're right on the money with regard to Chrysler's future depending on Fiat.

Ford not interested in Chrysler's brands or assets.
http://www.cnbc.com/id/30114172/for/cnbc/

Govt not happy with Chrysler's new SUV?
http://www.cnbc.com/id/30103625/site/14081545

[MoparDan]

Dan, I expect you're right on the money with regard to Chrysler's future depending on Fiat.

Ford not interested in Chrysler's brands or assets.
http://www.cnbc.com/id/30114172/for/cnbc/

Govt not happy with Chrysler's new SUV?
http://www.cnbc.com/id/30103625/site/14081545

We'll have to see how it plays out. I just don't want to hear Corker & Shelby of Redneck Nation whine on that Chrysler needs to do something else. Corker in particular has droned on that Chrysler needs a partner to be viable; well they've got one now. The jerk will find something else to bitch about about why the company can't survive. He really needs a tampon in the worst way. :D

[ccbatson]

Street price on vipers is low 80s now (maybe lower). If Viper is spun off as a one model company, with that one car packing a 8.4L V10 and getting 12 MPG...CAFE would double the price.

[MoparDan]

Okay you gear heads! The Phoenix(now Pentastar) V6 Engine
http://www.allpar.com/mopar/phoenix-engines.html
With Pictures!!!

[ccbatson]

Not too bad...not a generation or 2 ahead either (clue 1, timing chains have been around since before timing belts).

[MoparDan]

Not too bad...not a generation or 2 ahead either (clue 1, timing chains have been around since before timing belts).

Nothing wrong with metal timing chains over a belt any day of the week.

[MoparDan]

With pictures!
http://www.allpar.com/news/index.php/2009/04/steve-saleen-launches-new-sms-challengers/

Steve Saleen launches new SMS Challengers (http://www.allpar.com/news/index.php/2009/04/steve-saleen-launches-new-sms-challengers/)
Steve Saleen launched two new SMS models, the revised SMS 570 and the new SMS 570X, based on the Dodge Challenger (http://www.allpar.com/cars/dodge/challenger.html), with engines (http://www.allpar.com/mopar.html) putting out 500 hp and 700 hp, respectively. Other changes have been made to increase traction and overall performance. SMS 570/SMS 570X Challengers details (http://www.allpar.com/cars/dodge/challenger/SMS.html).

http://www.allpar.com/cars/dodge/challenger/SMS.html
SMS 570 and SMS 570X: Dodge Challengers Plus

[ccbatson]

Agreed Mopardan...just that it isn't new.

Saleen is acting in what capacity now? He sold "Saleen", now what? Has he started a new company

[MoparDan]

Saleen is acting in what capacity now? He sold "Saleen", now what? Has he started a new company

According to Wikipedia:
"On November 11, 2008, Saleen announced intentions for a sale of its corporate operations.[5] (http://en.wikipedia.org/wiki/Saleen,_Incorporated#cite_note-4) A few months later, on February 2, 2009, MJ Acquisitions acquired the tooling and rights to the design of Saleen's supercharger, along with the aftermarket and high performance street vehicle business units (Ford Mustang and Ford F150-related products). However, ownership of the business units associated with the S7 and S5S Raptor in addition to the paint operations remain integral components of Saleen not purchased in the sale.[6] (http://en.wikipedia.org/wiki/Saleen,_Incorporated#cite_note-5) MJ Acquisitions stated “Regrettably, Saleen Inc. is unable to honor any warranties” after ceasing operations."

Other than that, what'd you think of the Challengers?

[ccbatson]

The challenger is very cool, but like the Mustang and upcoming Camaro, 400 pounds too heavy (why), and the interior is nowhere near as inspiring in design as the exterior.

[MoparDan]

I agree about the weight...drop it down to 3500lbs at most. My '73 Charger weighs roughly 3700 & we're talking actually iron/steel here.
About the interiors, I didn't think they were that bad. At least you have analog gauges. I'd like to see something a little more "classic" such as their old rallye clusters & slapstick for auto; pistol grip shifter for standard.
You'll have to scroll to the bottom but this will give you an idea of what I'm talking about.
http://images.google.com/imgres?imgurl=http://70challenger.com/images/img_0509_1efa.jpg&imgrefurl=http://70challenger.com/page2.html&usg=__tiGc0l4xa-XImXf1mD1wvrQd7Cw=&h=2112&w=2816&sz=3296&hl=en&start=17&um=1&tbnid=_8_9RH9_-j-GyM:&tbnh=113&tbnw=150&prev=/images%3Fq%3D1971%2BChallenger%2Brallye%2Bdash%26h l%3Den%26um%3D1

[ccbatson]

However, those negatives aside...425hp V8 hemi, great looks, performance that puts the original to shame...great stuff. A good starting point as well. Too bad that Obama is going to make that kind of product extinct.

[oladub]

"The boss of Italian carmaker Fiat has threatened to walk away from an alliance with US carmaker Chrysler if unions do not make concessions."

http://news.bbc.co.uk/2/hi/business/8001179.stm

[MoparDan]

Not completely. Slap the MDS system on it & make it flex fuel.
I think what Chrysler ought to do is drop the weight of the Challenger to 3500lbs, put the MDS on the V6, add a decent sound system, slap a few cheap spoilers on it & keep the price below $23k...that would allow the youth market to buy a muscle car & maybe capture those people for the long run. ChryCo wouldn't clear much profit per vehicle, but overall they'd sell tons of 'em!

[ccbatson]

Yes on dropping the weight, who cares about flex fuel (it is a hoax), but a V6?? Sacrilege, the vehicle is destroyed by that.

[MoparDan]

Let me clarify...I meant the base Challenger, not one of these Saleen machines. LOL The US Automakers have basically lost almost two generations of car buyers. You gotta start somewhere, so you make an affordable Challenger available with that new 290HP V6, drop the wt & slap on the MDS. The kiddos can buy a muscle car that has decent power to weight & perhaps respectable MPG. Just speculation but I think it would work.

[ccbatson]

Against the ricers (ie Subaru)? A hard sell IMO. Stick with the V8 and stay out of other markets where you are ill equipped to compete.

[MoparDan]

I think it has a chance. I bounced the idea off a few of my daughter's male friends & they thought it would be doable. They like the Challenger's styling & when I mentioned a new 290HP V6 coming out that seemed to picque their interest. If nothing else, it would at least give Chrysler an entry vehicle. The only reason why the ricers are even there are because our guys basically abandoned it to the Japs for too long.

[ccbatson]

I would point out that the Subaru is getting over 300HP weighs less, has 4 wheel drive, and costs about the same.

[MoparDan]

What Subaru model are you talking about?

[ccbatson]

WRX STI, and not far behind it, the high performance versions of the Legacy.

[MoparDan]

WRX STI, and not far behind it, the high performance versions of the Legacy.
The starting price is almost $35k for that STI. How is that a better deal than what I proposed for the Challenger at less than $23k?
http://www.subaru.com/vehicles/impreza-wrx/sti/index.html

[ccbatson]

True, but, by the same logic, I propose that Subaru offer a lesser equipped version for 22K (and I believe something along those lines is in the works).

[MoparDan]

Ok. I guess we can propose ideas all day on this one.
Here's some actual news.
http://www.allpar.com/news/index.php/2009/04/confirmed-new-chrysler-board/

Confirmed: new Chrysler board (http://www.allpar.com/news/index.php/2009/04/confirmed-new-chrysler-board/)
April 17th, 2009
by DaveAdmin
Bob Nardelli wrote: “Upon successful completion of the alliance, a board of directors for Chrysler will be appointed by the U.S. government and Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html). The majority of the directors will be independent (not employees of Chrysler or Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html)). The board will have the responsibility to appoint a chairman. The board also will select a CEO with Fiat’s concurrence.”
This was part of a longer message to employees:

To All Chrysler Employees,
I’d like to give you an update as to where we stand in our restructuring process, since we expect the next two weeks to be very busy as we move toward our April 30 deadline. As you know, significant concessions from all Chrysler constituents are a requirement of our government loans and a condition of our alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html). President Obama himself acknowledged this in his March 30 address on the auto industry:
“Now, what we’re asking for is difficult. It will require hard choices by companies. It will require unions and workers who have already made extraordinarily painful concessions to do more … It will require efforts from a whole host of other stakeholders, including dealers and suppliers.”
While we have made progress with most constituents, there are significant challenges remaining, and I wanted to provide you with a brief update on where we are in the process.
UAW: As required by our U.S. Treasury loan, we submitted a viability plan on Feb. 17 that included tentative agreements with the United Auto Workers union related to modified VEBA terms and hourly wage rates competitive with the transplants. Unfortunately, the Administration reviewed the plan and determined that Chrysler was not viable as a standalone entity, and as noted above, even with an alliance partner, Chrysler must ask for additional sacrifices. The additional concessions we are seeking from the UAW are critical to receiving continued support of the Administration, completing our Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) alliance and achieving sustained viability.
CAW: Chrysler and the Canadian Auto Workers union have held a series of meetings, but unfortunately, have not reached an agreement on concessions as outlined by the Canadian government. The CAW has been unwilling to abide by the terms of the Canadian government loan, which requests that the union meet local transplant all-in labor costs. This issue is also critical. Without a successful resolution, the alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) and our continued viability is at risk.
Canadian government: The Canadian government has been very supportive of our viability, providing a loan of $1 billion (CDN $750 million drawn to date), with an agreement to provide additional support in proportion to the loans received from the U.S. Treasury.
Creditors: The U.S Treasury has been meeting regularly with our creditor group, which has been asked to make significant additional concessions. The U.S. Treasury has extended a concessions proposal to the group, and the creditor group is expected to respond shortly.
Suppliers: In these troubled times we have had success with our suppliers, with some being very supportive. Others have become involved in the Federal Automotive Supplier Support Program. To date, Chrysler has approved 150 suppliers for the program.
Dealers: Our dealers were among the first constituency groups to meet their concession goals and continue as strong supporters of Chrysler. In spite of the negative perceptions surrounding our industry, our dealers show tremendous enthusiasm for our company, our brands and products in their local communities with their optimism and steadfast support of our customers.
Chrysler Employees: As a result of extensive downsizing and de-layering, Chrysler employees continue to do more with less throughout the organization. Significant costs and benefits have been eliminated and all federal guidelines are being met.
Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html): We continue to review the status of all stakeholder discussions with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html), as the achievement of concessions is a condition of the alliance. Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) strongly believes in the mutual benefits the alliance would create for both of our companies, our customers, employees and other constituents.
To help set the record straight in light of recent media speculation, let me share with you a few facts on the alliance. Upon successful completion of the alliance, a board of directors for Chrysler will be appointed by the U.S. government and Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html). The majority of the directors will be independent (not employees of Chrysler or Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html)). The board will have the responsibility to appoint a chairman. The board also will select a CEO with Fiat’s concurrence.
As we enter this crucial period, I want you to know that I appreciate your tireless efforts and dedication to the cause of ensuring Chrysler’s future success. I ask you to stay focused on the job at hand, remain positive about our future and keep supporting one another in everything you do.
Thank you again for your continued commitment to Chrysler.
Bob

[ccbatson]

Fingers are crossed to the extent that this isn't just a veiled effort to liquidate Chrysler with Fiat being the major buyer of salvageable elements of the company.

[MoparDan]

http://www.freep.com/article/20090420/BUSINESS01/904200312?imw=Y

Tired of pundits, Chrysler workers want to tell their side

[ccbatson]

Worker's side? Spoiled by having the unions kill the goose that laid the golden eggs long ago.

[MoparDan]

http://www.allpar.com/news/index.php/2009/04/marchionne-returns-to-us/

Marchionne returns to U.S. (http://www.allpar.com/news/index.php/2009/04/marchionne-returns-to-us/)

April 20th, 2009
by Bill Cawthon
With time running out to reach an alliance agreement and agreements with unions and creditors, Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) CEO Sergio Marchionne is back in the United States for meetings in Detroit and Washington. It is noteworthy that Marchionne’s itinerary does not include Canada where Chrysler, the Canadian government and the Canadian Autoworkers Union are at loggerheads over concessions the automaker is demanding. The Canadian government had asked Marchionne to attend the meetings.
Marchionne will return to Italy in time for a board meeting ahead of the release of Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html)’s first-quarter results on Thursday.

================================================== =========
http://www.allpar.com/news/index.php/2009/04/caw-responds-to-chrysler-demands/

CAW responds to Chrysler demands (http://www.allpar.com/news/index.php/2009/04/caw-responds-to-chrysler-demands/)

April 20th, 2009
by DaveAdmin
The CAW has publicly responded to Chrysler’s and the government’s demands for $19 per hour in concessions, which culminated in Tom LaSorda’s statement that Chrysler might pull all of its manufacturing from Canada.
The CAW pointed out that Chrysler has lower hourly labor costs and higher productivity in its Canadian plants than in the U.S., and a higher market share in Canada than in the U.S. The company also benefits from socialized medicine by not having to spend billions on health care in Canada, and can tap a well educated workforce.
While some have called the CAW “inflexible,” in May 2008 the CAW agreed to a contract which they claimed saved the industry $300 million per year, re-opening the existing contract before its expiration. Later, the CAW agreed to cut labor costs for GM again, and to eliminate a billion dollars in “legacy costs.”
The CAW’s open letter to the media continued:

We could have reached a valuable new contract with Chrysler, prior to the original March 31 deadline that would have provided substantial savings to the company (including Chrysler-specific productivity and operational changes worth several dollars per hour). But the company, after accepting our offers, always wanted more; with President Obama’s announcement on March 30, our talks were put on the back burner. …
Now we face the prospect of our own federal government interfering in our negotiations, which were already complex and difficult to begin with. … Seeing our own government echoing perfectly the painful demands made on hard-working, tax-paying Canadians by the executives of multinational corporations is deeply troubling. Worse yet, by clearly taking sides in private negotiations between an employer and the union, and hence emboldening the company to keep asking for more, the federal government is making it harder to reach a deal.
- We do not accept Chrysler’s claim that the work of CAW members costs $76 per hour. This is an inflated and artificial figure that includes many non-relevant factors, such as expenses associated with retirees who have not worked at Chrysler for years, and payroll taxes which are paid to government not to workers. Perhaps most galling of all, Chrysler’s number even includes the proportional cost of downtime and lay-offs. In essence, we are being “charged” for our own unemployment. The best way to reduce that artificial $76 number is to put Chrysler workers back to work: that alone would reduce hourly costs by several dollars per hour.
- And we do not remotely accept the claim that there is cost gap of up to $19 per hour between our facilities and non-union auto assembly plants in Canada. The Canadian executives of Toyota and Honda have described many times their strategy of essentially matching wages, pensions, and core benefits to those paid in CAW-represented facilities (as a key part of their long-term effort to avoid unionization).
- The CAW has a proven track record of ensuring that Canadian plants are competitive within North America… [which is] why our share of total continental production has actually grown in recent years (despite the industry’s overall challenges).

[ccbatson]

Painful...but possibly necessary and for the betterment of the viability of the company in the future.

[MoparDan]

Well, it gets even more interesting...
http://finance.yahoo.com/news/Chrysler-lenders-offer-to-apf-14992510.html?.v=15

Chrysler lenders offer to swap $2.5B for equity

Lenders offer to swap $2.5B of Chrysler's debt for equity, but won't give up all they're owed

Tom Krisher and Dan Strumpf, AP Auto Writers
Tuesday April 21, 2009, 11:58 pm EDT
DETROIT (AP) -- Banks and hedge funds that hold $6.9 billion in Chrysler LLC debt have proposed forgiving $2.5 billion of it in exchange for about a 40 percent stake in a Chrysler-Fiat alliance, according to two people briefed on the proposal.
One of the people said the lenders delivered their counterproposal to Chrysler and the U.S. Treasury Department late Monday night. Neither person wanted to be identified because the negotiations are private.


The lenders also want Fiat to invest $1 billion cash in Chrysler, and they want to appoint one person to the company's board, according to term sheets obtained by The Associated Press.
The counteroffer comes as Chrysler races to meet a government-imposed April 30 deadline to swap debt for equity, cut labor costs and negotiate an alliance with Italy's Fiat Group SpA. If it misses the deadline, government aid will end and Chrysler likely faces liquidation.
Last week, creditors rejected a Treasury Department offer to reduce the debt to $1 billion, absolving Chrysler of about 85 percent of its secured loans. The counteroffer, which would swap about 35 percent of the debt for equity, falls short of government restructuring goals that called for Chrysler to retire at least two-thirds of its debt.
Spokeswomen for the Treasury Department and Chrysler declined to comment.
Michigan Gov. Jennifer Granholm criticized the creditors Tuesday night for failing to relieve Chrysler of more of its debt even as they benefit from federal bank bailout aid.
"Our economy is in turmoil as a result of Wall Street's irresponsible actions, and now some of the very institutions that received $90 billion in federal support are turning their backs on a company that employs tens of thousands of American workers," Granholm said in a statement.
After the counteroffer was made public Tuesday, Moody's Investors Service lowered its rating of Chrysler's corporate family of debt one notch from "Ca" to the lowest possible rating, "C," indicating "the certainty that Chrysler ... will file for bankruptcy" or restructure its debt in a way that would be considered a default for ratings purposes. The ratings agency also lowered its estimated rate at which creditors would recover their debt to 20 percent from 50 percent.
The company also affirmed General Motors Corp.'s "Ca" family debt rating but reduced its estimated recovery rate to 30 percent from 50 percent. As part of its own government-managed restructuring, GM is trying to persuade its bondholders to take company stock in exchange for much of the company's $28 billion in bond debt.
Chrysler is living on $4 billion in federal loans and could get another $500 million to survive through April, but without massive restructuring and a Fiat deal, Chrysler won't get any more aid, government officials have said.
GM has received $13.4 billion and could get up to another $5 billion to survive until its June 1 deadline, according to a government report released Tuesday.
The counteroffer from a steering committee of Chrysler creditors would give the equity stake to first-lien lenders including Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and several smaller banks, plus some hedge funds. Chrysler has about 45 first-lien lenders who would be first in line to get money if the company's assets were liquidated.
"The goal is something close to 40 percent of the equity" in the revamped company, according to one of the people briefed on the lenders' proposal. "Taking equity is a risky proposition," the person said.
U.S. Rep. Gary Peters, a Democrat whose district includes Chrysler's Auburn Hills headquarters, said the lenders aren't negotiating in good faith.
"These debtholders were offered fair market value for their debt and the banks have responded by asking for a windfall," he said in a written statement. "It is extremely disappointing that while other stakeholders have agreed to work with President Obama to advance Chrysler's restructuring, financial institutions that have already taken billions of dollars in taxpayer support are refusing to do the same."
When the Bush administration agreed to give Chrysler and GM loans last year, it set targets for their creditors to swap two-thirds of their debt for equity. The Obama administration has been less clear about how much debt must be exchanged, saying in a March 30 statement that Chrysler must have a "sustainable debt burden."
"This at a minimum will require extinguishing the vast majority of Chrysler's outstanding secured debt and all of its unsecured debt and equity, other than trade creditors providing normal trade terms," the statement said.
One of the people briefed on the counteroffer said the debtholders are aware that it doesn't meet the two-thirds debt-for-equity swap required by the Bush administration, but it would be a piece of an overall plan to wipe out most of Chrysler's debt.
Including the secured debt and government loans, Chrysler owes about $23.5 billion, including $10.6 billion to a United Auto Workers trust fund that will take over retiree health care costs starting next year. It also owes $1 billion each to its owners, Cerberus Capital Management LP and Daimler AG.
The company is negotiating with the UAW to take equity for part of the trust fund obligation, as well as other concessions.
Bankruptcy experts have said the secured debtholders would be less likely to settle for pennies on the dollar because their loans are secured by Chrysler's physical assets and because they likely purchased credit default insurance that would repay them if Chrysler defaults.
Chrysler and Fiat have been discussing a deal in which Fiat would take a 20 percent stake in the company in exchange for Fiat's small-car technology, but Fiat didn't intend to invest any cash. Fiat CEO Sergio Marchionne spent Tuesday in Washington talking to the government's auto task force about the deal.
AP Auto Writer Dan Strumpf reported from New York.

[jiminnm]

"Bankruptcy experts have said the secured debtholders would be less likely to settle for pennies on the dollar because their loans are secured by Chrysler's physical assets and because they likely purchased credit default insurance that would repay them if Chrysler defaults."

This is the key phrase in the article. I have read other articles stating that secured lenders (who hold most of Chrysler's debt) believe that they will recover anywhere from 45% to 65% of the amounts owed them if Chrysler files bankruptcy. If the lenders are are correct, why would they forgive debt under the government assumption that the debt is worth 10-15% of amounts owed.

I think this means that Chrysler either becomes a subsidiary of Fiat or goes away entirely (and the latter is more likely if Fiat is required to put up $1B).

I looked at the new Challenger at our NM Auto Show last weekend and liked it a lot. I wonder if it will be around when I'll be in the market in 2-3 years. Unfortunately, it was the only Chrysler, Dodge or Jeep that was generating any looker interest. The car that generated the most interest, however, was the new Camaro.

[ccbatson]

Get the government out before it is too late...CAFE standards, penalties/incentives against oil/for "green", Being in cahoots with organized labor, corporate taxes. If a government were purposely trying to kill an industry, would they do anything differently?

[Detroitej72]

You do realise labor, at most shares the blame with incompatant management and greedy capitalist owners? (Cerberus is only interested in making money, not cars)

[ccbatson]

Very well understood...free markets bring the best interests of consumer and producers into alignment.

[rb336]

Very well understood...free markets bring the best interests of consumer and producers into alignment.

hardly. natural markets, yes. invnted markets, no

[MoparDan]

The latest on negotiatons from AllPar
http://www.allpar.com/news/index.php/2009/04/chrysler-negotiations-status/

Chrysler lenders’ counter-offer (http://www.allpar.com/news/index.php/2009/04/chrysler-negotiations-status/)

April 24th, 2009
by DaveAdmin
The current Chrysler first-lien lenders group’s offer for to the Treasury is dropping the debt level to $3.75 billion, and 40% of Chrysler’s equity. The lenders have dropped $750 million in debt, their demand for $1 billion of their equity to be preferred equity, and their demand that Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) invest $1 billion. This is still $2.25 billion and 35%-of-Chrysler more than the Treasury’s current offer to the lenders.
The negotiations are likely to increase in speed as deadlines loom and Chrysler and the governments wield bankruptcy as a threat against lenders and unions alike.
According to Reuters, the government’s first offer to Chrysler’s first-lien lenders was around $1 billion cash, in exchange for $7 billion in debt. The lenders countered with an offer of reducing the debt to $4.5 billon in exchange for 40% of the equity, prompting “leaks” that suggested Chrysler was planning to enter bankruptcy within one week and a Treasury counter-offer of $1.5 billion in debt and 5% of the equity in Chrysler, in exchange for the $7 billion in debt.
The lenders involved include JPMorgan Chase & Co, Morgan Stanley, Citigroup, Goldman Sachs Group, Oppenheimer Funds, Stairway Capital Management, Elliott Management, and Perella Weinberg Partners. This group is currently negotiating with the Treasury and Chrysler, with motivation for bargaining coming from the threat of a Chapter 11 bankruptcy.
Similar talks are being held with the United Auto Workers and Canadian Auto Workers, with similar leverage held by Chrysler and the two national governments.
================================================== ========
I'm fearful of a Ch 11 bankruptcy but what concerns me more is if the company winds up being liquidated of its assets. Guess who'd be buying it up for pennies on the dollar? The Chinese, Indians & Koreans. We're going to wake up one day & realize we're a colony all over again. Scary stuff!

[MoparDan]

More news released this morning concerning the CAW, conf call with dealers & even GM concerning Pontiac.
http://www.allpar.com/news/

[ccbatson]

Bankruptcy is the only viable hope of extricating themselves from becoming socialized automakers (a doomsday scenario). The other piece necessary is for government to deregulate the industry allowing them to do what they should be doing...endeavoring to produce and sell cars that buyers want at competitive prices

[Stosh]

Whatever happened to the 20 post limit here?

[MoparDan]

Released this morning.

http://finance.yahoo.com/news/Chrysler-reaches-labor-deals-apf-15037136.html?sec=topStories&pos=3&asset=&ccode (http://finance.yahoo.com/news/Chrysler-reaches-labor-deals-apf-15037136.html?sec=topStories&pos=3&asset=&ccode)=

Chrysler reaches labor deals in fight for survival

Chrysler reaches deals with UAW, CAW labor unions, now needs debtholder agreement to survive


<LI class=byline>Tom Krisher, AP Auto Writer
On Monday April 27, 2009, 6:14 am EDT
DETROIT (AP) -- It looks like scrappy little Chrysler LLC might yet escape the auctioneer's gavel.



The smallest U.S.-based automaker cleared two major hurdles on Sunday in its quest for survival, reaching a concession agreement with the United Auto Workers and winning ratification of its cost-cutting deal with the Canadian Auto Workers.
That leaves only two obstacles standing between Chrysler and up to $6 billion in additional loans from the U.S. government: A partnership deal with Italy's Fiat Group SpA and an agreement to swap equity for debt with banks and hedge funds that hold $6.9 billion in secured Chrysler loans. Chrysler has four plants and thousands of employees in Ohio.
Details of the UAW deal weren't disclosed, but the union said it was crafted together with Chrysler, Fiat Group SpA and the U.S. government. That means the cost cuts have been blessed by the Treasury Department, which has been overseeing efforts to restructure Chrysler and its Detroit counterpart, General Motors Corp.
It also means Fiat was heavily involved in negotiations, a sign that the Italian automaker is serious about taking a 20 percent stake in Chrysler in exchange for providing the Auburn Hills, Mich., company with small-car technology.
Chrysler has been living on $4 billion in government loans and may get another $500 million to keep it alive through Thursday's deadline to restructure to the government's satisfaction. If it can't close the final deals, however, no more government money will be made available and the company almost certainly would be auctioned off in pieces under bankruptcy court supervision.
For weeks, it appeared Chrysler might not be able to meet a deadline many in the industry considered impossible. But White House economic adviser Larry Summers said Sunday the Obama administration is holding out hope that Chrysler can avoid bankruptcy court.
And two people briefed on negotiations with Fiat said the companies are close to signing a deal as long as debtholders agree to take equity in the company for a portion of the $6.9 billion they are owed. The people didn't want to be identified because talks have not been made public.
The UAW late Sunday called the concessions painful but said the deal takes advantage of the Obama administration giving Chrysler and its workers a second chance. The administration in February rejected Chrysler's original restructuring plan, saying the company could not stand on its own and had until April 30 to make further cuts and take on Fiat as a partner.
"The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U.S. Treasury Department," Chrysler Vice President of Labor Relations Al Iacobelli said in a statement. "As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA."
Separately, Canadian Auto Workers President Ken Lewenza said their deal makes labor costs competitive with non-unionized Toyota in Canada. It will save Chrysler about $240 million a year Canadian (US$198 million) even though it doesn't cut base wages or pensions, amounting to the $19 Canadian (US$15) an hour in savings the company was seeking. The agreement eliminates Christmas bonuses, semiprivate hospital room coverage, certain drug fees and a one-time vacation buyout of $3,500 Canadian (US$2,885). It also reduces break times and vacation time.
Meanwhile, debtholders, the company and the Treasury Department remain far apart on terms to swap equity in the company for much of the debt. A counteroffer to the debtholders from the Treasury is expected as early as Monday.
UAW Vice President General Holliefield said in a statement that UAW members and retirees are being asked to make extraordinary sacrifices to help Chrysler become viable.
"In order for the company to have a sustainable future, all stakeholders will have to show the same willingness to contribute to the common good that has been demonstrated repeatedly by our membership," he said.
After rejecting the February plan, the government had said the UAW and Canadian Auto Workers unions must make further concessions, including the UAW taking equity in the company for at least half of a $10.6 billion payment into a union-run trust that will take over retiree health care costs starting next year.
The UAW says its deal "meets the requirements of U.S. Treasury Department loans to the company," and includes changes to the health care trust. Details will be presented to local union officials from across the country on Monday, with voting to wrap up by Wednesday.
"We recognize this has been a long ordeal for active and retired auto workers, and a time of great uncertainty," UAW President Ron Gettelfinger said in a statement. "The patience, resolve and determination of UAW members in these difficult times is extraordinary, and has made it possible for us to reach the agreement we will present to our membership."
Fiat CEO Sergio Marchionne was in the U.S. as talks continued for the automaker to take a 20 percent stake in Chrysler in exchange for its small-car technology. The government has said it would be willing to loan Chrysler up to another $6 billion if it is able to complete its restructuring and ink the deal with Fiat.
Fiat may build the small cars at Chrysler factories in the U.S., but they wouldn't arrive until late 2010 or early 2011, according to industry analysts.
"We're hopeful that the negotiations, which have been proceeding with great energy, are going to conclude successfully," Summers said in an appearance on "Fox News Sunday." "You never know -- with any negotiation -- until the very end. There are some issues that have been worked out. There are some issues that remain to be worked out, but it's in everybody's interest to see these negotiations succeed and we're hopeful that they will."
Also Sunday, General Motors Corp., which is living on $15.4 billion in government loans, said it will update its restructuring plan on Monday.
Two people briefed on the plan said GM will scrap its storied Pontiac brand and shutter more factories than the five it said in February it would close. The factories' locations won't be disclosed, said the people, who asked not to be identified because the plan has not been made public.
The plan will come as the company announces an offer to exchange up to $28 billion in GM bond debt for stock in the company.
GM faces a June 1 deadline to restructure or head into Chapter 11 bankruptcy protection.

[ccbatson]

Stosh...check the math with the dates.

Any comments on the substance of the material?

[MoparDan]

A slew of news
http://www.allpar.com/news/

Daimler AG gives up Chrysler stake, writes off $700M (http://www.allpar.com/news/index.php/2009/04/daimler-ag-gives-up-chrysler-stake-writes-off-700m/)
April 27th, 2009
by Bill Cawthon
German automaker Daimler AG has agreed to give up its 19.9 percent share of Chrysler LLC, writing off $700 million and clearing the way for the Detroit automaker’s proposed alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA.
Daimler today signed a term sheet with Cerberus Capital Management and the U.S. Pernsion Benefit Guaranty Corp. The agreement ends the DaimlerChrysler era, which left Chrysler in a shambles, followed by Cerberus Capital Management’s acquisition, which burdened Chrysler with billions of dollars in debt.
Under the deal, Chrysler will make three annual payments of $200 million each into the company’s pension plans, beginning on Thursday, April 30 and on the same date in 2010 and 2011.
In a statement, Daimler said:
“Daimler’s remaining 19.9 percent shareholding in Chrysler will be redeemed, and Daimler will forgive repayment of the loans extended to Chrysler, which were already written off in the 2008 financial statement.”
The Daimler statement also said, “Following the transfer of the term sheet into the final definitive agreements, the relationship between Daimler and Chrysler will solely consist of dealer-supplier-customer relations including limited support for certain dealer financing until the end of September 2009.”


Kurt Busch takes points lead in NASCAR Sprint Cup series (http://www.allpar.com/news/index.php/2009/04/kurt-busch-takes-points-lead-in-nascar-sprint-cup-series/)
April 27th, 2009 by DaveAdmin
Kurt Busch became the first Dodge driver to lead the NASCAR Sprint Cup standings since the 2008 Daytona (http://www.allpar.com/model/daytona.html) 500, won by Ryan Newman. Busch has not held the lead since March 2005.
Busch, driving the #2 Dodge (sponsored by Miller), had visible damage when he finished the race at Talladega on Sunday, in sixth place. That finish was enough to launch him into first place in points.
Talladega is known for major accidents, and Sunday’s race saw a 14 car accident early in the race and a 10 car crash 173 laps later; two leaders hit each other in the last lap as well. Busch was affected by the first incident, requiring a pit stop for repairs (http://www.allpar.com/fix/index.html), as did two further incidents later in the race.
Other Dodge cars finished in positions 11, 19, 31, 34, 35, and 36. After nine of 36 races, only Kurt Busch is in positive numbers in the point standings, at 1,242 points. (Source: Chrysler)


GM makes drastic cuts; stockholders get 1% (http://www.allpar.com/news/index.php/2009/04/gm-makes-drastic-cuts-stockholders-get-1/)
April 27th, 2009 by DaveAdmin
General Motors now plans to drop Pontiac and Saturn far earlier than Rick Wagoner had planned, with Saturn, Hummer, and Saab to stop receiving new vehicles at the end of the 2009 model year and Pontiac to be dropped entirely, rather than phased into a niche brand. 21,000 jobs will be cut - 7,000 more than announced on February 17. Over one third of GM’s current plants will be closed by 2012, with most (13 of 16) closing by the end of 2010 and six closing by the end of 2009. Around one third of the current hourly employees will be dropped along with 14 nameplates, within a single year.
GM is also offering holders of unsecured debt 10% of equity in the company and accrued interest to avoid bankruptcy. The Treasury Department will own a majority of GM’s stock, giving it the right to appoint directors and to control most votes; the UAW will also own a substantial equity in the company. GM is currently negotiating with the Treasury to exchange half of its $15.4 billion in debt for common stock.
Pontiacs will be dropped, not rebadged. The Vibe, a rebadged Toyota (http://www.toyoland.com/), will disappear; the critically acclaimed Solstice would live on as the Saturn Sky, except that Saturn is also being dropped.
GM also said it planned to make offers to dealers to help them leave their business in order to cut dealer count by at least 42% - a task which should be easier now that many dealers are facing bankruptcy.
The UAW’s VEBA plan for providing retiree health care will give up at least $10 billion of funding in exchange for up to (but probably considerably less than) 39% of GM’s stock.
Existing shareholders, who currently own 100% of GM, will now own just 1%; however, GM stock rose 27% to $2.16 per share on the news.


Chrysler statement on UAW agreement (http://www.allpar.com/news/index.php/2009/04/chrysler-statement-on-uaw-agreement/)
April 26th, 2009 by Bill Cawthon
Attributed to Al Iacobelli, Chief Bargainer and Vice President – Employee Relations:
Chrysler LLC has reached an agreement today with the UAW subject to ratification. We commend the UAW’s leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry.
The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department.
As a result, Chrysler LLC can continue to pursue a partnership with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA.
Chrysler management has the utmost respect for thousands of men and women who are an integral part of our manufacturing operations.

UAW reaches agreement with Chrysler, Feds, Fiat (http://www.allpar.com/news/index.php/2009/04/uaw-reaches-agreement-with-chrysler-feds-fiat/)
April 26th, 2009 by Bill Cawthon
The United Auto Workers union today announced it had reached an agreement with Chrysler, Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) and the U.S. Treasury that will reduce Chrysler’s obligations to the union’s retiree healthcare program.
The deal marks another hurdle Chrysler has cleared in its efforts to avoid filing for bankruptcy and clear the way for an alliance with the Italian automaker.
In a statement UAW President Ron Gettelfinger thanked union members for their willingness to sacrifice.
“We recognize this has been a long ordeal for active and retired auto workers, and a time of great uncertainty. The patience, resolve and determination of UAW members in these difficult times is extraordinary, and has made it possible for us to reach the agreement.”
The UAW agreement must be ratified by Wednesday.
The members of the Canadian Auto Workers union ratified their new agreement with Chrysler with 87 percent voting in favor.
This leaves Chrysler’s secured creditors as the only remaining obstacle to the company successfully meeting the requirements set the the Obama Administration’s auto task force and qualifying for billions of dollars in additional government loan assistance.

[MoparDan]

Looks like Daimler will finally be out of the picture. Damn that "merger of equals"...a match made in hell to be sure. :mad:
I missed this opinion about Cerberus which was posted on the Allpar site on the 22nd.
http://www.allpar.com/weblogs/2009/04/22/what-needs-to-happen/

[ndavies]

I got a call from my contract house last week. Chrysler had just opened up 58 engineer positions. All purchased services. (Purchased services aren't included in head counts.) They wanted to see if I wanted to reapply for my old job.

Fortunately for me, I already have a job and don't need to jump back into that huge mess of stress.

[MoparDan]

Things definitely looking up!
http://www.allpar.com/news/index.php...eal-concluded/ (http://www.allpar.com/news/index.php/2009/04/post-chrysler-creditor-deal-concluded/)

Post: Chrysler creditor deal concluded (http://www.allpar.com/news/index.php/2009/04/post-chrysler-creditor-deal-concluded/)

April 28th, 2009
by DaveAdmin
According to the Washington Post (http://www.washingtonpost.com/wp-dyn/content/article/2009/04/28/AR2009042801241.html?hpid=topnews), Chrysler’s creditor group has reached an accord with the Treasury Department which will, coupled with this week’s union deals, prevent bankruptcy. A group of 45 financial firms have agreed to drop their debt demand from $6.9 to $2 billion and around 10% of the company’s equity, shared with the U.S. government. The UAW’s VEBA fund would take a 55% share, in exchange for handling retiree benefits (replacing up to $10 billion in cash), and Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) would gain 35% of Chrysler. Daimler’s 19.9% stake was given back yesterday; Daimler also agreed to pay $600 million to the pension plan over three years, and to forgive $1.5 billion in loans, presumably in exchange for Cerberus dropping a lawsuit charging Daimler with misleading the private equity firm.
The Post’s story has not been verified. (Thanks, romedog.)

[jiminnm]

Damn that "merger of equals"...a match made in hell to be sure. :mad:

Dan, I have never seen a corporate merger of equals. In every instance, regardless of what the companies say, one is taking over and one is being taken over.

[MoparDan]

Dan, I have never seen a corporate merger of equals. In every instance, regardless of what the companies say, one is taking over and one is being taken over.

Jim, I fully understand that. That's how the marriage of Daimler & Chrysler was sold to everyone. Whenever I've written that comment, I put quotes around it to emphasize the irony. I do think Daimler should be renamed "Damion" as in The Omen movies. :cool: In any case they are out of the picture; whether this Fiat arrangement will help, only time will tell. If nothing else, at least on the surface they complement each other.

[ccbatson]

As history now tells us...neither side got what they were after.

[MoparDan]

And yet more news this evening.
http://www.allpar.com/news/index.php/2009/04/chrysler-creditor-deal-confirmed/

Chrysler creditor deal confirmed (http://www.allpar.com/news/index.php/2009/04/chrysler-creditor-deal-confirmed/)

April 28th, 2009
by Bill Cawthon
While there has been no official comment from Chrysler, a senior official in the Obama Administration confirms that Chrysler has reached a deal with its major creditors to write down a significant portion of its $6.9 billion in debt. and qualify for up to $6 billion in government loans.
“The agreement from Chrysler’s principal banks is an exceptional accomplishment in line with the President’s firm commitment that all stakeholders sacrifice to make this deal succeed,” the official said.
The agreement, along with new labor agreements from the UAW and CAW, should also clear the way for Chrysler to finalize its alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA.

[ndavies]

Here comes the Bankruptcy................

http://www.bloomberg.com/apps/news?pid=20601087&sid=axs5Oz4fZ.wQ&refer=home

[ccbatson]

Given the alternative (socialized automakers)...bankruptcy sounds attractive...heck, dissolution and allowing competitors to enter the game would be better.

[Stosh]

Given the alternative (socialized automakers)...bankruptcy sounds attractive...heck, dissolution and allowing competitors to enter the game would be better.

I'm anticipating the meltdown in the medical field as well, CC. I wonder if the same rules apply to you ? Probably not I'd assume. An influx of competent doctors from other nations that are willing to work for significantly less money than the overpaid, bloated ones we have now would be a breath of fresh air. Viva free market capitalism.

[ccbatson]

Good point, and I see the same catastrophe coming with the following results: A two tiered system surfaces, as socialized care becomes poorer in quality and lesser in availability, more people will elect to use the private system. Doctors in higher demand (based on quality and outcomes) will eschew participation in the Marxist system and shift over to all private pay. Personal details of where I/my group is at in this spectrum and in anticipation of this outcome are withheld for obvious reasons. Suffice it to say, we are preparing to succeed well in advance.

[Stosh]

Good point, and I see the same catastrophe coming with the following results: A two tiered system surfaces, as socialized care becomes poorer in quality and lesser in availability, more people will elect to use the private system. Doctors in higher demand (based on quality and outcomes) will eschew participation in the Marxist system and shift over to all private pay. Personal details of where I/my group is at in this spectrum and in anticipation of this outcome are withheld for obvious reasons. Suffice it to say, we are preparing to succeed well in advance.

Thus lies the flaw in your reasoning. You are assuming that there will be actual money available for people to private pay. More people will be unable to afford the private system as either they lose their jobs, or their employers find it's easier to just abandon paying benefits to their employees. It's that simple. The have-nots will soon outnumber the haves.

Quality of care will matter little to the fellow that doesn't have much money to spend, he will flow to the lower cost provider. I hope that you enjoy the race to the bottom. I see more call for free clinics and holistic medical care than the specialists currently pillaging our medical system.

Years ago, doctors took chickens (among other barter) for payment for medical treatment. I hope that you and your group like chickens.

[MoparDan]

I guess we'll have to see how this dance unfolds.
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/30/AR2009043001639.html

Chrysler to File for Bankruptcy

[MoparDan]

This is a few GOP representatives(McCotter & Camp) from up there criticizing Obama. Maybe they should've been lobbying their friends in the Senate like Corker, McConnell & Shelby. Oh yeah, that's right, they have "principles". ;)

Mich. Republicans blast Obama's Chrysler plan
http://www.detnews.com/article/20090430/AUTO01/904300475/1361/Mich.-Republicans-blast-Obama-s-Chrysler-plan

[ccbatson]

Stosh...sadly (really, I am not being critical) you are mistaken. Look at India where this has already occurred. Eventualy, the choice will be free no care, or black market driven/competition regulated quality care at affordable prices. At first (actually, at present), it is limited to those with plentiful resources, but in time....

Right now, without naming names, a person can go to certain walk in clinics and pay reasonable prices for care eliminating long lines in ERs.

Regarding Chrysler.....it seems the worst possible scenario is surfacing. Unions are to be given the largest stake in the company?? Runaway costs are the core and killer source of the crisis...now the keys to the candy store are to be given to the self same unions? BTW, 'given by whom" good old statist/collectivist Obama and company, that's who. Who is he (Obama) blaming? Why the banks owed money for not giving their property away for nothing. Anybody want to try and convince a rational person that Obama is not a socialist/Marxist now?

[Stosh]

Stosh...sadly (really, I am not being critical) you are mistaken. Look at India where this has already occurred. Eventualy, the choice will be free no care, or black market driven/competition regulated quality care at affordable prices. At first (actually, at present), it is limited to those with plentiful resources, but in time....

I'm assuming that you meant no free care. In which case, of course, you will be wrong. The vast majority of doctor visits now is just for prescribing purposes. Case in point, specialist that handles lung disease. Only time a patient might see him, if stable, is when meds are needed to be refilled. This could easily be handled by a nurse practitioner working under a community health co-op or some similar organization.



Right now, without naming names, a person can go to certain walk in clinics and pay reasonable prices for care eliminating long lines in ERs.

See above for a more free market solution. Simple tests and blood work are vastly overpriced now. Doctors should be for serious illness only, as long as they continue this entitlement philosophy.



Regarding Chrysler.....it seems the worst possible scenario is surfacing. Unions are to be given the largest stake in the company?? Runaway costs are the core and killer source of the crisis...now the keys to the candy store are to be given to the self same unions? BTW, 'given by whom" good old statist/collectivist Obama and company, that's who. Who is he (Obama) blaming? Why the banks owed money for not giving their property away for nothing. Anybody want to try and convince a rational person that Obama is not a socialist/Marxist now?

Control of the company does not lie in the union's hands. The company's retiree health care is funded by that "stock" that was or will be issued in a revamped company. At no time will the union assume control of anything. Truth be known, your alternative to Obama, Mr. McCain, would have had both auto companies belly up by now. He was adamant in their free market failure. I think that Obama's trying his best to right the failures of the previous administration, and the prior 2 owners of Chrysler (Daimler and Cerberus)

I'd agree that runaway costs are killing the company. But the costs of the health care crisis manufactured by the health care industry is killing everyone, from the autos to the lowly mom and pop businesses. Even cities like Detroit and Farmington Hills are suffering the effects of their health care legacy costs. When socialized medicine enters the picture here, it will be welcomed in this household, since I believe that we've been too long waiting to help out our own people.

Sorry to upset your little doctor party, but things do come to an end. Maybe you can volunteer a day at a free clinic or two?

[MoparDan]

More news from AllPar

Chrysler will form new company with Fiat (http://www.allpar.com/news/index.php/2009/04/chrysler-will-form-new-company-with-fiat/)

April 30th, 2009
by Bill Cawthon
Chrysler will sell its principal assets to a new company under Section 363 of the Bankruptcy Code. The new company will be the result of the alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) and will have the Chrysler, Dodge and Jeep (http://www.allpar.com/model/jeep/jeep-history.html) brands, as well as most of Chrysler’s current employees and production facilities. Chrysler’s current employees will become employees of the new company.
Chrysler will pay $2 billion to its secured creditors for the assets.
Section 363 allows assets to be sold quickly, so the “new” Chrysler should spend only about 60 days under court supervision.
The remaining assets will go through a traditional Chapter 11 process where they will be sold or liquidated.

Freep: New Chrysler will not include 8 plants (http://www.allpar.com/news/index.php/2009/04/freep-new-chrysler-will-not-include-8-plants/)

April 30th, 2009
by DaveAdmin
The Detroit Free Press (http://freep.com/article/20090430/BUSINESS01/90430079/1014/Chrysler+to+shed+8+plants+in+case) wrote that the new Chrysler will not include eight factories (http://www.allpar.com/corporate/factories.html) and machinery worth $2.3 billion to pay a portion of unsecured debt.
The name of the company to acquire Chrysler’s “good assets” was referred to as New CarCo Acquisition LLC (”New Chrysler.”) This seems unlikely to be a permanent company.
Ron Kolka’s statement noted, “The major assets remaining would include eight (8) manufacturing facilities, and related machinery and equipment, with a book value of $2.3 billion.”
While no details have been released, we believe this most likely includes the Conner Avenue (http://www.allpar.com/cars/viper/conner-avenue.html) plant, Viper (http://www.allpar.com/cars/viper/conner-avenue.html) and associated machinery, Newark (http://www.allpar.com/corporate/factories/newark.html) (DE) plant, the Plymouth Road facility, Twinsburg Stamping, foreign holdings, a variety of real estate which is unused or under-used, one of the two World Engine plants in Dundee, possibly engine plants that are to be shut down with the transition to the Pentastar V6, and possibly one of the “main” plants - Sterling Heights (http://www.allpar.com/corporate/factories/sterling-heights.html), one of the truck plants, Belvedere (http://www.allpar.com/model/belvedere.html), etc. The former Outer Drive Stamping Plant (Mt. Elliott Tool and Die) may also be included.

Chrysler bankruptcy judge appointed (http://www.allpar.com/news/index.php/2009/04/chrysler-bankruptcy-judge-appointed/)

April 30th, 2009
by DaveAdmin
According to Reuters, Arthur Gonzalez, one of the nation’s most experienced bankruptcy judges, will oversee the bankruptcy proceedings for Chrysler. He handled both Enron and WorldCom’s bankruptcies simultaneously; he has a favorable reputation and considerable experience in high-profile cases. The sale of key assets to the Treasury is expected to come very soon in the case, with other decisions possibly continuing for many months. The first hearing is due tomorrow morning.

[MoparDan]

From the Wall Street Journal.
http://online.wsj.com/article/BT-CO-20090501-704043.html
Obama Takes Aim At Hedge Funds Amid Chrysler Bankruptcy

From the article:
A person at a hedge-fund firm that owns Chrysler loans, speaking anonymously, told Dow Jones Newswires that the difference between what loanholders would get in bankruptcy and out of bankruptcy wasn't that much, meaning the non-TARP lenders are making a political statement more than anything.
"Are they taking reputational risk for pennies?" asked the person. "Do the math on the recovery levels. It doesn't make sense for them to have held out for purely economic value."

And there you have it.

[ccbatson]

Stosh...Physician extenders are great as just that, extenders of??? PHYSICIANS. But that is beside the point, they get reimbursed 85-100% of Physician pay and are less efficient in general.

Obama was trying to turn the rule of law on its' head by putting union and government lenders ahead of the rightful first tier lenders in terms of the percentage recovered. The Hedge funds are simply willing to take a chance that a judge will follow the rule of law and give them the higher amount.

[Stosh]

Stosh...Physician extenders are great as just that, extenders of??? PHYSICIANS. But that is beside the point, they get reimbursed 85-100% of Physician pay and are less efficient in general.

Obama was trying to turn the rule of law on its' head by putting union and government lenders ahead of the rightful first tier lenders in terms of the percentage recovered. The Hedge funds are simply willing to take a chance that a judge will follow the rule of law and give them the higher amount.

Of course, a nurse practitioner does not make what you make. In a free clinic seytting, I'd be willing to bet anything that cost of the NP just halved or quartered your potential bill.

And the hedges can take a flying leap. Seriously.

[MoparDan]

From the AllPar site.
http://www.allpar.com/corporate/cerb...ankruptcy.html (http://www.allpar.com/corporate/cerberus/bankruptcy.html)

Chrysler Bankruptcy: Central Wrap-Up (Part 1)

Updated 5-1-09, 4:26 pm, EST.

History
Chrysler was the second largest automaker between 1936 and 1949. It was acquired by Daimler-Benz in 1998, and suffered from poor management and lack of investment until being sold to Cerberus Capital Management. A combination of economic, political, marketing, and product issues short-circuited Cerberus' rapid work on correcting Daimler’s mis-handling of Chrysler; and, while the government was glad to lend trillions of dollars to financial institutions, politicians demanded that President Bush, and then President Obama, allow Chrysler and General Motors to go into an unassisted bankruptcy. Bush made interim loans over the objections of his party leaders, and Obama worked on forming deals to preserve Chrysler and GM. Bankruptcy would have been avoided, but three lenders refused to accept the Treasury's deal, which was admittedly draconian.
The three lenders were Oppenheimer Funds, Perrella Weinberg Partners, and Stairway Capital.

Summary of the core parties’ expectations
The bankruptcy may be brief, with the White House and Chrysler expecting a sale of core assets within 60 days. Legal expenses are likely to be $1,000 per hour per attorney, with a possibility of losing major assets or, if customers do not rely on government-backed warranties, liquidation if sales plummet and delays occur.
The bankruptcy court judge has approved payments to employees and dealers, incentive payments, and honoring of warranties.
Court papers are available at Chrysler’s site, chryslerRestructuring.com (http://www.chryslerrestructuring.com/).
Chrysler will sell its principal assets to a new company under Section 363 of the Bankruptcy Code. The new company will, if plans are maintained and no other company outbids them, be the result of the alliance with Fiat and will have the Chrysler, Dodge and Jeep brands, as well as most of Chrysler's current employees and production facilities. Chrysler's current employees will become employees of the new company.
The Treasury will provide up to $3.5 billion in debtor-in-possession financing, and $4.5 billion in exit financing; the Canadian government will provide around $800 million and get 2 percent of Chrysler's equity. $280 million has already been transferred to a program that guarantees Chrysler's warranties, so customers can be more confident in buying cars from a company in bankruptcy.
The Fiat deal has been finalized and signed. A new board of directors will be created by Chrysler, the government, and Fiat, and Bob Nardelli will return to Cerberus as an advisor once the new company is created; Tom LaSorda will retire during the initial bankruptcy proceedings.
Arthur Gonzalez, one of the nation's most experienced bankruptcy judges, will oversee the bankruptcy proceedings for Chrysler. He handled both Enron and WorldCom's bankruptcies simultaneously; he has a favorable reputation and considerable experience in high-profile cases. The sale of key assets to the Treasury is expected to come very soon in the case, with other decisions possibly continuing for years.
Chrysler will pay $2 billion to its secured creditors. Its unsecured creditors, who are mainly parts suppliers and the BBDO Detroit advertising agency, may be paid more immediately in some cases, depending on what the judge allows.
The top unsecured debtor is Ohio Module Manufacturing, which presumably supplies Jeep components, and is owed $70 million. Ad agency BBDO Detroit was at #2, with $58 million owed. Many of the top ten debtors are instantly recognizeable to Chrysler fans - Johnson Controls (interior parts), Continental Automotive (electronics, ABS, brakes, and more), Cummins, Visteon, New Process, and Denso. Also included are Comau of Michigan and Germersheim Spare Parts of Germany.
GMAC will be the preferred lender for Chrysler’s consumer loans.
The Chrysler name will remain at the top of the new company formed out of Chrysler LLC's "good assets." The employees’ benefits association (VEBA), which will have 55% of the equity, will not have voting rights; those will be held by the U.S. Treasury, which, along with the Canadian government, will hold the remaining 10%.
The new Chrysler will be managed by a board of directors consisting of nine directors, three of which will be appointed by Fiat (one of Fiat’s must satisfy the criteria for independence under the New York Stock Exchange listing rules). VEBA and the Government of Canada will each appoint one Director, and the U.S. Treasury will have the right to make the initial appointment of four directors (three of whom must be independent).

Production and plant closings
The newly renovated Sterling Heights Assembly Plant, which makes the Avenger and Sebring, will be closed in or before December 2010. Conner Avenue, Detroit Axle, St. Louis North, Kenosha Engine, and Twinsburg Stamping will also be closed and sold. Sterling Heights will not be included in the New Chrysler but will be leased to it.
Conner Avenue and St. Louis North are not surprising candidates to be left out of the "New Chrysler" since St. Louis has already been closed and Conner Avenue's sale was announced some time ago. Some have expected Twinsburg to be closed as well, and Kenosha production will be replaced by a new Pentastar V6 plant.
From Monday, May 4, through the sale of the “good Chrysler assets,” all Chrysler plants will be closed, though employees will keep their health benefits. If the process takes longer than the expected 60 days to create a new Chrysler holding company, some limited production may restart. During this period, Chrysler will cut its marketing budget by 50%, given that there will be no production.

Companies covered in the petition
sebring96hbg provided a link to Chrysler's actual bankruptcy petition.
Companies covered include Chrysler LLC, Chrysler Aviation, three Dutch divisions, the Chrysler Institute of Engineering, three international corporations, Chrysler Motors LLC, Chrysler Realty, the service contracts companies, Chrysler Technologies Middle East, Chrysler Transport, the vans business (Sprinter), Dealer Capital, GEM (electric cars), NEV, Peapod, TPF Asset and Note, and Utility Assets LLC.
Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy.

[MoparDan]

Chrysler Bankruptcy: Central Wrap-Up (Part 2)

Plan for the new company
As per Bob Nardelli:

When the transaction is completed, the Voluntary Employee Beneficiary Association (VEBA) will own 55 percent of the new company and the U.S. and Canadian governments will own proportionate shares of a 10 percent stake. Fiat will initially hold a 20 percent ownership stake in Chrysler. Fiat will have the right to increase its ownership stake an additional 15 percent in three increments as it meets the following criteria: 5 percent for bringing a 40 mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for providing a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until after all U.S. government loans have been completely repaid.
The UAW’s VEBA will not having voting rights, according to prior reports, so Fiat will have a controlling interest unless the VEBA is able to sell its share, and the buyers are given voting rights.

Betrayal by Cerberus
Though the Cerberus people tried to portray themselves as patriots rescuing a great American automaker, in the end, Steve Feinberg did not invest his own money to rescue the company from bankruptcy, and tried to link up with numerous Chinese companies. While in some cases the sales would have made sense, for example trying to sell parts and the Newark paint shop to Chinese automakers, they also appear to have tried to sell large parts of the company itself, and appear to have been willing to break up Chrysler despite constant statements that they were keeping the company whole.
Tom LaSorda, in his court statements, wrote:

Chrysler sent letters to parties, primarily in China, whom we thought would be potentially interested in purchasing our assets. Over the next two months, several companies, including Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co., expressed interest in purchasing specific vehicles, powertrains, intellectual property rights, distribution channels and automotive brands.
Rumors surrounding an attempted sale to GM, which would have been disastrous for employees at both companies but would have kept assets in the United States, appear to be true; LaSorda wrote that Nardelli himself called Rick Wagoner in January 2009 to try to restart the merger. GM was not interested.
LaSorda said that Chrysler tried to form alliances with Nissan, GM, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda, and Toyota. The alliance with Toyota suggested by LaSorda and Jim Press would have had Toyota using Chrysler factories to build new products. Toyota quickly rejected the proposal, as did Honda.
Talks with Nissan started in 2007, as rumored. In 2008, Nissan and Chrysler exchanged term sheets, but Nissan could not get the needed financing. They tried again later in 2008, with executives from both companies, but were unable to nail down financing; in January 2009, Nissan was no longer interested.
Talks with Fiat apparently began in March 2008, and were more fruitful.

[ccbatson]

Cerebrus tried, in good faith, to do what they do as a business, they are not to be faulted for that.

[MoparDan]

http://www.allpar.com/news/index.php/2009/05/chrysler-seeks-quick-asset-auction/

Chrysler seeks quick asset auction (http://www.allpar.com/news/index.php/2009/05/chrysler-seeks-quick-asset-auction/)

May 3rd, 2009
by Bill Cawthon
On Monday, May 4, Chrysler LLC will file a motion to sell most of its assets to a new company managed by Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA.
In a bid to keep its time in bankruptcy short, the Detroit automaker will ask the U.S. Bankruptcy Court in Manhattan to approve an alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) and schedule an auction within three weeks. The company hopes Judge Arthur Gonzales will require objections be filed by May 11 so the auction can be scheduled for May 22.
The new company would bid $2 billion for most of Chrysler’s assets and assume some liabilities. The remainder of Chrysler’s assets, including an estimated eight plants, would be sold off through traditional Chapter 11 channels. Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) CEO Sergio Marchionne is reported to be reviewing all of Chrysler’s assets, looking for “white elephants” to unload.
The new company will be owned by the UAW’s Voluntary Employee Beneficiary Association (VEBA), Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) and the U.S. and Canadian governments. Cerberus Capital Management will not have any stake and, contrary to many statements, the United Auto Workers union will not have any direct ownership of the new company as the VEBA is an entirely separate organization with an independent board of directors.
President Obama has given Chrysler 60 days to complete an alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html).
Chrysler’s holdout creditors still could present a challenge to the quick exit plans by objecting to the auction but it is not certain they would prevail, considering the pre-auction Treasury offers of about $0.33 cents on the dollar for Chrysler’s $6.9 billion debt.

[oladub]

What is happening to GM's investments in non-European countries like China and Brazil? Will it be possible for GM, or Chrysler, to sell tooling for Vibes, Saturns, Hummers, etc. to foreign countries or companies?

Now that GM is largely a state owned company, it's products might be treated differently by foreign governments and populaces. Imagine our perception of Chrysler products if the Peoples Army, instead of Fiat, was Chrysler's new 'partner'.

[MoparDan]

Released this morning.

http://www.allpar.com/news/

Chrysler cash from stock sale? (http://www.allpar.com/news/index.php/2009/05/chrysler-cash-from-stock-sale/)
May 4th, 2009
by DaveAdmin
Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) has answered the question of how the company planned to finance its takeover of Opel at the same time it would presumably need to invest funds into Chrysler. The company now plans to take over GM Europe and create a new corporation, which would be listed on a yet-unspecified stock exchange, combining Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html), Opel, Saab, Vauxhall, and its share of Chrysler. In return for keeping most of GM Europe’s plants running, Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) has asked for around $7-9 billion in financing from countries with Opel and Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) plants. The new company would keep GM as a minority shareholder, and would help to counter the flood of imports from Japan, Korea, and, eventually, China. However, it would take over Opel without taking on Opel’s debts.
Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) Group would retain Ferrari and Maserati. (information from Automotive News (http://www.autonews.com/))

Obstinate creditors seek secrecy (http://www.allpar.com/news/index.php/2009/05/obstinate-creditors-seek-secrecy/)
May 4th, 2009
by DaveAdmin
Chrysler creditors who are seeking to avoid the quick sale of the “good assets” are now trying to keep their companies’ names secret, with an attorney claiming that he has received death threats, according to the Detroit News (http://www.detnews.com/article/20090504/AUTO01/905040386/1148/rss25). Perhaps more to the point, some investors have already started pulling their funds from the companies that helped send Chrysler into bankruptcy, with Oppenheimer Funds being the most visible. Michigan’s legislature has decreed that the state will divest from the three lead funds that held out for more cash, angrily claiming that retirees and auto workers were being put ahead of banks and hedge funds. Presumably, if the names of all the creditors now challenging the Treasury plan were exposed, they could also face financial repercussions.

And the beat goes on!

[ccbatson]

Bold moves from Fiat. Are they subsidized by the Italian government?

[MoparDan]

Bold moves from Fiat. Are they subsidized by the Italian government?

I can't find anything that states the Italian government has any stake in the company.

http://usnews.rankingsandreviews.com/cars-trucks/fiat-chrysler-merger/
"Fiat SpA is an Italian automotive company that's known for its quirky and fun-to-drive small cars. Fiat is also the parent company of other Italian automakers, including Alfa Romeo, and has ownership stakes in Maserati and Ferrari."

It appears they have their fingers in a lot of pies. :cool:

[jiminnm]

Fiat is publicly traded in Italy. I think the Agnelli family owns about one-third of the stock. Oddly enough, GM had 20% ownership not long ago. They reduced that stake to 10%, which I think has also been sold.

My dad once owned a 1970 Fiat station wagon. It was in the process of rusting away (starting with the roof) when another car didn't make the corner and demolished it while it was parked in front of our house.

[ccbatson]

Early Fiats (Fix it again Tony) were a mess. Unless you have spent time in Europe, you would not know much about the current crop of products. They make these micro cars for over in Europe which will need work to pass safety regs for the US (adding weight, decreasing performance and mileage). This in a market (the US) that is, at best, luke warm too micro cars.

[MoparDan]

http://www.allpar.com/news/

Next Chrysler CEO faces pay cap (http://www.allpar.com/news/index.php/2009/05/next-chrysler-ceo-faces-pay-cap/)

May 6th, 2009
by Bill Cawthon
Under U.S. Treasury rules governing the loans made to auto companies, the next Chrysler CEO may be limited to $500,000 in total annual compensation and will be eligible for stock awards that can be transferred only after the new automaker repays all government loans.
That’s still a $499,999 raise compared to the dollar a year that was being paid to current CEO Bob Nardelli but it’s just a fraction of the millions that were paid to Tom LaSorda, Ford CEO Alan Mullaly and former GM CEO Rick Wagoner, not to mention the fortunes paid to those Wall Street financiers who got $750 billion from the government with minimal oversight.
The new CEO won’t be the only one on short rations; the top 25 executives will also have to agree to pay limits and waive their rights to sue over the reduced compensation.


New Chrysler incentives delayed (http://www.allpar.com/news/index.php/2009/05/new-chrysler-incentives-delayed/)

May 6th, 2009
by Bill Cawthon
Chrysler has had to delay a new incentive program and the kickoff of a new marketing campaign.
The incentives, which were to replace the Employee Pricing Plus Plus program that ended yesterday, could be announced as soon as next week and the new “Come see what we’re building for you” campaign could get underway at the same time if Chrysler can get approval from the bankruptcy courts.


Laid-off workers lose severance pay (http://www.allpar.com/news/index.php/2009/05/laid-off-workers-lose-severance-pay/)

May 6th, 2009
by Bill Cawthon
The Detroit News (http://www.detnews.com/) is reporting that salaried Chrysler workers who were laid off in the restructuring before the company filed for bankruptcy protection have lost their severance pay. Workers who accepted lump-sum buyouts are not affected.
Chrysler spokesman Mike Palese said the money allocated for severance payments is considered part of the company’s assets and therefore must be paid to creditors.


Michigan files objection to Chrysler sale (http://www.allpar.com/news/index.php/2009/05/michigan-files-objection-to-chrysler-sale/)

May 6th, 2009
by Bill Cawthon
Late yesterday, the Michigan Workers’ Compensation Agency and Funds Administration attempted to stop Chrysler from selling its assets. In a legal brief, Mike Cox, the state’s attorney general, said Chrysler’s plan to abandon its $140 million obligation could bankrupt the fund that supports employees who are injured on the job.
Chrysler, like most large companies, does not have outside workers’ compensation insurance. It is self-insured. Should the company become unable or unwilling to meet its obligations, the state fund could become insolvent, leaving injured workers without resources.
Corinne Ball, Chrysler’s lead attorney in its bankruptcy case, said the automaker is committed to operating within the law and wants to honor its obligations. A Chrysler spokeswoman said the company is already working with the state agency but did not give any specifics.
Judge Arthur J. Gonzalez said he would rule later on the state’s objection but declined to postpone the May 27 approval date for the sale.



Chrysler sale approved (http://www.allpar.com/news/index.php/2009/05/chrysler-sale-approved/)

May 6th, 2009
by Bill Cawthon
Judge Arthur J. Gonzalez approved bidding procedures for the rapid sale of Chrysler assets late last night. Saying “there is an urgent need for the deal to be consumated,” he overruled objections from a group of lenders who termed the speeded-up process an “absurdity.”
Chrysler had asked for permission to have a quick sale of most of its assets to a new company held by Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA, the United Auto Workers’ Voluntary Employee Beneficiary Association, and the U.S. and Canadian governments. The lenders had sought to delay the sale or make the bidding more competitive. They claimed the approved procedures will prevent anyone but the government from submitting a successful bid.
Gonazales denied the lenders’ motions, ruling that courtroom testimony had shown the procedures were designed to “encourage bidding from any interested party.”
Potential “interested parties” did get an additional five days to submit bids. Judge Gonzalez set a deadline of May 20 for submission and set a May 27 hearing date for approval. Chrysler had originally asked for a May 22 approval date. Bidders must include a 10 percent deposit with their bid.
The judge also approved a $35 million breakup fee to be paid to Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) if a better offer for the Chrysler assets emerges

[ccbatson]

Welcome to socialized automaking. Care to hazard a guess at to where quality and costs are heading? Think public schools, socialized healthcare, etc....it isn't a pretty picture. Well, there is still Ford....for now.

[MoparDan]

Welcome to socialized automaking. Care to hazard a guess at to where quality and costs are heading? Think public schools, socialized healthcare, etc....it isn't a pretty picture. Well, there is still Ford....for now.

Couldn't be any worse than what Daimler or Cerberus did to the company.

Since you're a Jeep guy, they were approved to offer more incentives on them this month.

[ccbatson]

Heck yes it could be worse. Better dead than red as they say. Worse is undermining the free market and watching quality decline across the board as costs go up and up.

I am a Jeep guy?? Actually, I like, and own/have owned many autos, almost all American. However, i fear for the future of this attraction based on the handwriting turning up on the wall.

[MoparDan]

I am a Jeep guy?? Actually, I like, and own/have owned many autos, almost all American. However, i fear for the future of this attraction based on the handwriting turning up on the wall.

I got that impression a few weeks back when you brought up something about Jeep & the Hemi option; we were discussing HP numbers & other fun stuff like that.
As for the situation, just gotta try to weather this storm & hope they can come out of it in a position to compete better. Fiat can't be worse than Daimler.

[ccbatson]

It isn't Fiat that is the problem...it is Obama and socialized automaking.

Sure, I admire many good products...one of which is the Jeep SRT8.

[MoparDan]

http://www.allpar.com/news/index.php/2009/05/chrysler-to-make-dealer-cuts-by-may-14/ (http://www.allpar.com/news/index.php/2009/05/chrysler-to-make-dealer-cuts-by-may-14/)

Chrysler to make dealer cuts by May 14 (http://www.allpar.com/news/index.php/2009/05/chrysler-to-make-dealer-cuts-by-may-14/)

May 9th, 2009
by Bill Cawthon
Chrysler, Dodge and Jeep (http://www.allpar.com/model/jeep/jeep-history.html) will learn whether they will be a part of the new Chrysler on Thursday, May 14.
As part of its efforts to slim down, Chrysler (http://www.allpar.com/news/index.php/2009/05/chrysler-to-make-dealer-cuts-by-may-14/#) will cut about 800 of its 3,600 dealers, a process that will be simplified by Chrysler’s bankruptcy case. Dealers are normally protected by state automotive franchise laws but those do not apply in case of bankruptcy.

[MoparDan]

More stuff from AllPar including GM info.
http://www.allpar.com/news/

Mopar’s Hübinette at Road Atlanta (http://www.allpar.com/news/index.php/2009/05/mopars-hubinette-at-road-atlanta/)

May 12th, 2009 by DaveAdmin
Dodge (http://www.allpar.com/news/#) Viper (http://www.allpar.com/cars/viper/conner-avenue.html) SRT10® Formula Drift (FD) driver Samuel Hübinette suffered an earlier-than-desired exit today at Road Atlanta, earning one round win before losing to eventual event winner Chris Forsberg in the Top 16 round of tandem eliminations.
Hübinette qualified his Mopar-powered Dodge Viper (http://www.allpar.com/cars/viper/conner-avenue.html) No. 5 on Friday, then dispatched of rookie Jeff Jones in the first round of eliminations on Saturday. The second round was very close; the judges saw things even after the first two runs, calling for a One More Time (OMT) battle. Hübinette closely shadowed Forsberg and posted one of the highest entry speeds (87.8 mph) of the event. The judges once again deemed the match to close to call, asking for a second and final OMT. During the second OMT Hübinette remained glued to Forsberg’s tail and made contact. The judges advanced Forsberg, handing Hübinette a rare Top 16 loss.
Hübinette said, “The Mopar Dodge Viper (http://www.allpar.com/cars/viper/conner-avenue.html) has been running solid. We have had no problems whatsoever, which says a lot about our Mopar-powered engine. We had the right set up to get good usage out of our BFGoodrich KDWs, and we did. We had one of the fastest initiation speeds of anybody this weekend.”
The next event will be at Wall Speedway in Wall, N.J., June 5–6.


market share (http://www.allpar.com/news/index.php/2009/05/chrysler-mexico-gains-market-share/)
May 12th, 2009 by DaveAdmin
Chrysler (http://www.allpar.com/news/#) Mexico reported a 36% drop in sales in a market that was down 39%, bringing market share to 11%, its best since March 2008. The Dodge Journey remains Mexico’ best selling crossover, outselling its closest competitor by nearly two to one; Chrysler is the largest SUV seller in Mexico with a 20% market share, with the Patriot remaining Mexico’s #2 SUV. Dodge trucks had a 26% market share for the month. Nissan and General Motors, the top two Mexican automakers, were down 47% and 52% respectively.



Utilities demand deposits (http://www.allpar.com/news/index.php/2009/05/utilities-demand-deposits/)

May 12th, 2009 by Bill Cawthon
Citing past-due bills measured in the millions, Commonwealth Edison, DTE Energy, MichCon and other utilities are asking federal bankruptcy Judge Arthur Gonzalez to require Chrysler to put up more than $25 million in deposits.
Chrysler attorneys had sought to have the judge issue a restraining order preventing the utilities from shutting off the power is Chrysler established a $6 million escrow account, but the utilities claim the amount is insufficient. DTE says Chrysler has owed $6.5 million since April 30, the day before the company filed for reorganization.
The company says its average monthly utility bills while it is in the bankruptcy process should total about $16.1 million.
Judge Gonzalez set a hearing for this Thursday to consider the petitions.
day before the automaker filed for Chapter 11 bankruptcy protection.



Task force chops Chrysler ad budget (http://www.allpar.com/news/index.php/2009/05/task-force-chops-chrysler-ad-budget/)

May 12th, 2009 by Bill Cawthon
President Obama’s auto task force flexed its muscle by cutting in half the $134 million Chrysler wanted to spend on advertising during its bankruptcy proceedings.
While they did chop the budget, the task force understood the need for advertising, which put them ahead of Judge Arthur Gonzalez who said: “Idle plants; why market?”
Robert Manzo, executive director of Capstone Advisory Group, who was testifying in the case, responded, “Advertising and marketing dollars are critical to make sure the right message is out there about Chrysler, what’s happening to Chrysler during this interim period and why Chrysler will be a brand going forward that is one that a consumer should continue to look at as one of their purchase opportunities.”
There’s also the matter of thousands of unsold Chrysler, Dodge and Jeep (http://www.allpar.com/model/jeep/jeep-history.html) vehicles on dealer lots and in Chrysler’s inventory. The automaker (http://www.allpar.com/news/#) is hoping the two-month plant furlough will bring those numbers down.


Bob Lutz, Gary Cowger and other GM execs unload stock (http://www.allpar.com/news/index.php/2009/05/bob-lutz-gary-cowger-and-other-gm-execs-unload-stock/)

May 12th, 2009 by Bill Cawthon
General Motors’ former Vice Chairman and product chief Bob Lutz, his successor, Thomas Stephens, manufacturing chief Gary Cowger, GM North America President Troy Clarke and Chief Information Offices Ralph Szygenda have sold all their GM stock.
The five disclosed the sales, which took place last Friday and yesterday, in filings with the SEC. The senior GM executives netted about $315, 000.
Lutz sold 81,360 shares at $1.61 each for a total of $130,989.
The five obeyed all laws regarding insider trading and sales, but the transactions could be taken as a sign GM is headed for bankruptcy, which could have rendered the shares worthless. Even if GM avoids bankruptcy, the existing shares could be worth as little as two cents after GM completes a 60 billion share issuance in accordance with its plans for reorganization.


Chrysler lawyers want to be first in line for payment (http://www.allpar.com/news/index.php/2009/05/chrysler-lawyers-want-to-be-first-in-line-for-payment/)

May 12th, 2009 by Bill Cawthon
Lawyers for Jones Day, the firm representing Chrysler in its bankruptcy case, and financial advisors Capstone Advisory Group have asked a judge to give their fees “superpriority” when determining the order of payment.
In support of their petition, the two firms said they would be extending significant amounts of credit to Chrysler because of their large fees. Other lawyers take this to mean there won’t be much left after Chrysler sells selected assets to Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html), the UAW’s VEBA and the U.S. and Canadian governments. The remaining assets would be be liquidated through the bankruptcy process and the proceeds would be used to pay creditors.
One legal expert said he had never heard of attorneys asking for such special treatment, saying its uncommon for lawyers to go unpaid because they generally won’t take cases where their remuneration could be at risk. However, another attorney said this could be a tactic to bring pressure on secured creditors to accept the sales to Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html).


GM to export Chinese cars to U.S. (http://www.allpar.com/news/index.php/2009/05/gm-to-export-chinese-cars-to-us/)

May 12th, 2009 by Bill Cawthon
General Motors, as part of its plan to increase its use of offshore manufacturing by 98 percent, will be exporting a car it build in China to the United States in 2011.
The company believes it will sell 17,335 of the cars in the first year and almost three times that many, 51,546, by 2014. By comparison, GM sold 55,360 Chevrolet Aveos in 2008.
GM would be the first automaker to bring Chinese-built cars to the U.S. and says they would amount to just 1.6 percent of the company’s total expected 3.1 million sales in 2014. In 2008, GM sold 2,954,819 vehicles with eight brands. According to current plans, the company will have only four brands in 2014 but expects sales to surge 50 percent.
The plan is subject to change because of pending negotiations with the UAW. UAW legislative director Alan Reuther has already criticized GM’s plan to shutter U.S. factories (http://www.allpar.com/corporate/factories.html) and step up the importation of vehicles assembled in Asia and Mexico.
GM says sales of U.S.-built vehicles would remain constant at approximately two-thirds of GM’s total production.

[Lorax]

Looks like CCBatty's in deep with the hate for Obama:mad:.

You need to turn off the FUX NOISE channel of fascist Repugnican Taliban propaganda, and stop kissing Limbaugh's ample ass, it can't taste very good.

If you accept government loans, there is oversight, whether banks or auto companies.

If they can't compete with 8 years of open season under Tush & Cheney, where there were literally no consequences to screwing the American economy, and were allowed to run roughshod over the middle class, then they can go under as far as I'm concerned- or they can take out a loan from the taxpayer, and repay it over time, as was done in the early 80's with Chrysler.

Never forget who put us here, it was Repugnican fascist policies of the last 8 years, and now we're faced with cleaning up the mess.

We don't need or welcome any input from right wing fringe fascists, like the socially retarded Gingrich, Cantor, Steele, or Limbaughs of the world.

Most foreign car makers are socialized/subsidized by their respective governments, and there is nothing wrong with that.

Socialism in the best sense is a good thing, as Martha Stewart would say.

Most progressive nations of the world are socialized democracies, which is what we were set up to be under the constitution, which I might add, you need to read again, Batty.

[ccbatson]

I don't hate the man (Obama) at all. I strongly oppose the ideology of collectivism that he is pushing. More to the point, I believe that individual liberty is the highest ideal and the highest priority.

[MoparDan]

http://www.allpar.com/news/

Jalopnik’s Jeep J8 jaunt (http://www.allpar.com/news/index.php/2009/05/jalopniks-jeep-j8-jaunt/)

May 12th, 2009 by Bill Cawthon
The folks over at Jalopnik recently sampled the capabilities of a civilian version of the military-sales-only Jeep (http://www.allpar.com/model/jeep/jeep-history.html) J8 pickup at Island Lake State Park near Brighton, Michigan. Check out Ben Wojdyla’s review at AEV J8 Milspec: Offroading Jeep’s Forbidden Fruit (http://jalopnik.com/5248496/aev-j8-milspec-offroading-jeeps-forbidden-fruit)

Cruise Nights return to Chrysler Museum (http://www.allpar.com/news/index.php/2009/05/cruise-nights-return-to-chrysler-museum/)

May 12th, 2009 by Bill Cawthon
Cruise Nights are returning to the Walter P. Chrysler Museum, in Auburn Hills, for a fourth season beginning Thursday, June 11. The summer series runs every other Thursday - June 25, July 9 and 23 and Aug. 6 and 20 - from 6 - 9 p.m. on the Museum’s spacious grounds. The summer series is sponsored by Chrysler, Jeep® and Dodge (http://www.allpar.com/news/#).
Cruise Nights welcomes vehicles of all makes and models - rain or > shine - with “best of” awards, music, food concessions and after
hour tours of the Museum. Cruise Nights will also feature a changing lineup of Chrysler’s newest production (http://www.allpar.com/news/#)each evening along with specialists to demonstrate the features of each model.
New for Cruise Nights 2009 - Enthusiast Avenue, a collection of Detroit area businesses showcasing vehicle maintenance and restoration products and services, as well as entertainment options for auto (http://www.allpar.com/news/#) enthusiasts.
The Walter P. Chrysler Museum will welcome guest donations each Cruise Night to support the Museum’s ongoing heritage programs and exhibitions.
The Museum is located at the corner of Featherstone and Squirrel Rds., in Auburn Hills, at the southeast corner of the Chrysler complex, located at exit 78 off I-75.
For additional information, visit the Museum’s new Web site at www.wpchryslermuseum.org (http://www.wpchryslermuseum.org/) or call 248-944-0001


CEMA show set for June 13 (http://www.allpar.com/news/index.php/2009/05/cema-show-set-for-june-13/)

May 12th, 2009 by Bill Cawthon
The 20th Annual Chrysler Employee Motorsport Association (CEMA) show is June 13th. Pre-registration is still open.
Tom and Jeff Gale will be making a “Then & Now” Chrysler Design
presentation We are honoring the crew members of the “Mopar/Motown Missile” this year.
Visit www.cemaclub.org (http://www.cemaclub.org/) for details.

[MoparDan]

http://finance.yahoo.com/news/AP-Source-Chrysler-to-cut-800-apf-15223195.html?sec=topStories&pos=4&asset=&ccode=

AP Source: Chrysler to cut 800 dealers on Thursday

[MoparDan]

http://www.reuters.com/article/BROKER/idUSN1231053920090512

UPDATE 2-GMAC to provide financing for Chrysler dealers

[Lorax]

I don't hate the man (Obama) at all. I strongly oppose the ideology of collectivism that he is pushing. More to the point, I believe that individual liberty is the highest ideal and the highest priority.

Like an abusive husband, you have a funny way of showing it.:confused:

What do you think being part of nation of people who consider themselves patriots is?

What is the military?

What is working for a large repugnican run corporation?

What is being part of a community?

What is invlovement in politics?

All of it is collectivism. You talk about it as if it's a bad thing. It's not. Soical Security, Medicare, Medicaid, which are among the most successful government run (especially with democrats in charge) bureaucracies in history, and all represent collectivism.

Hell, being part of a much repugnican-loved HMO or other so called health care entity can exist only through collective efforts.

You REALLY need to turn off Limbo Boy and the rest of the Fox Fascists you're getting your propaganda from and wake up.

[MoparDan]

http://online.wsj.com/article/SB124216928611112681.html?ru=yahoo

Chrysler Looks to Exit From Unexpired Leases on 10 U.S. Properties

By MAURA WEBBER SADOVI (http://www.detroityes.com/search/search_center.html?KEYWORDS=MAURA+WEBBER+SADOVI&ARTICLESEARCHQUERY_PARSER=bylineAND)

While much of Chrysler LLC's bankruptcy restructuring remains to be hammered out, the auto maker wasted no time seeking to cut ties to a handful of small U.S. property owners.
On the same day last month that the 84-year-old company filed for Chapter 11 protection, Chrysler asked the court to allow it to reject 10 unexpired leases with a total of more than $30 million in rent remaining to be paid on them. The properties are mostly shuttered dealerships and some vacant land in California, Hawaii, Indiana, Louisiana, New York, Texas and Michigan.
The move couldn't have come at a worse time for the property owners. Weak demand for new cars has led to the closure of many dealerships across the U.S. For landlords, this has meant falling rents or, even worse, being left with vacant lots for which there aren't many other uses.
Chrysler, which is working to restructure itself by shrinking its dealer network and merging with Italian auto maker Fiat SpA, in general is believed to have leased few dealership properties on the corporate level. The leases it rejected were less desirable because most of them were vacant. They also were probably among the few such dealership leases on its books because dealers more typically own their own real estate, says James Mitchell, director of the national automotive group for Marcus & Millichap Real Estate Investment Services in Bethesda, Md.
In court documents, Chrysler said a review of its unexpired leases led the company to request the lease cancellations. "The debtors have determined the leases identified ... will not be assumed and assigned in the Fiat Transaction and are neither necessary nor valuable to their estates." A spokesman for Chrysler declined to comment further.
The news angered some landlords who said they will struggle to handle their financial obligations without Chrysler. Ronnie Lamarque, a 63-year-old New Orleans native who favors brightly colored ties in commercials for a New Orleans-area dealership that he still operates, says Chrysler had been negotiating to buy itself out of a lease that was to run through 2013 on a former dealership property in Metairie, La., just outside New Orleans.
Mr. Lamarque says he needs the $56,000 monthly rent to cover the property's $60,000 monthly mortgage and worries the cloud of bankruptcy will make it harder to find a new tenant willing to pay a reasonable rent. "Now people are just really going to be thinking this is a fire sale," says Mr. Lamarque, who notes that his bank called him Monday to notify him that Chrysler's $56,000 May rent check for property Mr. Lamarque owns in Metairie had bounced.
Moreover, the challenges some of the landlords may have replacing Chrysler's relatively rich rental stream soon will likely get even harder. Both General Motors (http://www.detroityes.com/public/quotes/main.html?type=djn&symbol=gm) Corp. and Chrysler are expected to announce details on their plans to prune their dealership networks this week.
More closed dealerships also could spell trouble for major retail strips in many communities. Bernard Haddigan, managing director of national retail for Marcus & Millichap Real Estate Investment Services in Atlanta, says a string of retail bankruptcies outside the automotive industry has already sent store vacancies skyward.
In addition, Mr. Haddigan says car dealerships, though often well located, aren't easy to redevelop to another use like larger so-called big-box stores. New users would typically be looking to demolish and reuse dealership properties, an approach made difficult by the dry credit markets. "Most of these sites are going to languish," he says.
Marchus & Millichap estimates that there are roughly 20,000 car dealerships nationally and that thousands are likely to be vacated in the next 12 months. Values also have fallen sharply. An average vacant dealership, which might be located on four acres with a 15,000-square-foot showroom, would fetch about $5 million, well below the $10 million an operating dealership might have sold for several years ago, Mr. Mitchell says.
Part of the struggle for some landlords was that Chrysler was paying more for empty space than other companies were willing to pay to occupy or buy it. Take the case of Frederick Nagher, who owns a former dealership site in the Dallas suburb of Mesquite, Texas, where Chrysler wants to cancel a lease. Chrysler is paying $35,000 a month in rent as well as the taxes on the property, Mr. Nagher says. The former dealership has been empty since 2003, in part because Mr. Nagher says he couldn't afford to sell to interested buyers that included a tractor dealership. "The lease was worth more than the building," Mr. Nagher says. "It was unlucky for me."
Write to Maura Webber Sadovi at maura.sadovi@wsj.com (maura.sadovi@wsj.com)

[MoparDan]

http://www.allpar.com/news/

UAW agrees not to strike until 2015 (http://www.allpar.com/news/index.php/2009/05/uaw-agrees-not-to-strike-until-2015/)

May 13th, 2009 by DaveAdmin
Bloomberg (as reported in Automotive News (http://www.autonews.com/)) has discovered that the UAW has agreed not to strike against Chrysler until September 2015, instead relying on binding arbitration. The contract finalized on April 29, 2009, will expire in September 2011; changes can be negotiated but any unresolved differences will be arbitrated. The contract cuts health care benefits, imposes stricter attendance rules, and combines job classes. Job classifications had, as an ongoing matter, been combined at individual factories (http://www.allpar.com/corporate/factories.html) as Chrysler modernized them and moved them to more flexible and empowered-group manufacturing processes.



Chrysler retirees and dealers hire lawyers (http://www.allpar.com/news/index.php/2009/05/chrysler-retirees-and-dealers-hire-lawyers/)

May 13th, 2009 by Bill Cawthon
Retired salaried Chrysler employees and franchised dealers are hiring attorneys to protect their interests.
The retirees, who have banded together as the National Chrysler Retirement Organizaion (NCRO) have hired Stahl Cowen Crowley Addis of Chicago to help in their struggle to keep their health benefits. More than 19,000 former employees, along with their spouses and dependents, are at risk of losing the benefits they were promised because those obligations would not be transferred to the “new” Chrysler but left with the “bad” assets to be disposed of by the court..
Chuck Austin, president of the NCRO, met with the auto (http://www.allpar.com/news/#) task force but was told Chrysler has only a moral obligation to continue benefits for salaried employees while it has a legal obligation to fund them for union members. Austin, who retired after 40 years with Chrysler, noted the company had made severe cuts to salaried retirees’ health benefits two years ago.
Chrysler, Dodge and Jeep (http://www.allpar.com/model/jeep/jeep-history.html) dealers who are considered likely to retain their franchises have decided to employ Arnold & Porter LLP of Washington, DC. Dealers who believe they are likely to be cut have brought in Squire Sanders & Dempsey of Cleveland. Tomorrow, Chrysler will post of list of about 800 dealers it intends to terminate. Chrysler currently has about 3,200 dealers.
Both groups are hoping Judge Arthur Gonzalez will grant them status to work with the committees overseeing the disposition of Chrysler assets.


Chrysler sees more buyouts after alliance (http://www.allpar.com/news/index.php/2009/05/chrysler-sees-more-buyouts-after-alliance/)

May 13th, 2009 by Bill Cawthon
Although Chrysler’s U.S. employee levels are the lowest they have been in 74 years, the company will be looking at more buyouts for hourly employees after the Detroit automaker emerges from bankruptcy and its alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) is finalized.
In a letter to UAW Vice President General Holiefield, Chrysler said special attrition programs to be designed with union cooperation should help achieve 3,500 voluntary separations. New hires brought in to replace those workers would be classified as lower-tier employees, making a reduced hourly wage and receiving few benefits.
The company also plans to eliminate 318 union-appointed representatives and compel the union to submit to arbitration if the two sides can not reach a settlement otherwise. Future wages and benefits will be governed by Chrysler maintaining a competitive labor cost structure compared to other automakers (http://www.allpar.com/news/#), including transplants.
Some of the terms were imposed by the government as a condition for receiving low-cost, government-backed loans. There has been no official response from the United Auto Workers’ leadership.
Chrysler reportedly has found a way to circumvent the $500,000 cap on executive pay that was also a condition of the federal loan program. According to court documents, managers would be considered Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) employees on loan to Chrysler, making them exempt from the limits. Compensation beyond the cap would be paid by Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html).


Cops & Rodders Show set for June 7 (http://www.allpar.com/news/index.php/2009/05/cops-rodders-show-set-for-june-7/)

May 12th, 2009 by Bill Cawthon
The Verona, Policeman’s Benevolent Association Local 72 will present its second annual Cops & Rodders Classic Car Show show on Sunday, June 7, 2009, at the Verona Civic Center, 600 Bloomfield Ave., Verona, New Jersey.
The show features classic cars and trucks (http://www.allpar.com/news/#) in 16 classes and four classes for police vehicles. There will also be awards for the police car (http://www.allpar.com/squads/index.html) driven furthest to the show, P.B.A. President’s Pick Police Car (http://www.allpar.com/squads/index.html), Best-in-Show Police Car (http://www.allpar.com/squads/index.html) and Best-in-Show Classic Car.
The show will run from 9 AM to 3 PM with registration from 9 AM to Noon. There will be more than 45 trophies awarded with presentations at 2:30 PM.
The show will have door prizes, goodie bags, kids’ activities, as well as police displays and vendors. Music will be provided by Legendary Entertainment.
The show is one of many fund raisers the Verona P.B.A. hosts to raise funds to contribute to our local D.A.R.E. program, the Verona High School Scholarship Fund and our Annual Holiday Costume Trip to local special needs schools.
Registration is $15.00 at the show, but interested exhibitors can pre-register for $10.00. Pre-registration deadline is May 31, 2009. Registration is free for police cars (http://www.allpar.com/squads/index.html).

[MoparDan]

http://www.allpar.com/weblogs/2009/05/11/will-navistar-buy-jeep/

Opinion: Will Navistar buy Jeep? (http://www.allpar.com/weblogs/2009/05/11/will-navistar-buy-jeep/)

[ccbatson]

Not to strike? Against themselves?

[Stosh]

Not to strike? Against themselves?

The UAW does not run the company, even if you say they do. 55% of stock to be sold ASAP.

[ccbatson]

Stock given to them for what? Bought by whom? Seriously concerning questions.

[otter]

Bats' posts are often rather like sort of inane haikus! :)

Bats, it is VEBA that has a share of Chrysler, not the UAW. They are not the same thing, and saying something like 'well, VEBA was created for the UAW' does not make it so, either.

O.

[MoparDan]

http://www.cnbc.com/id/30742243/site/14081545?__source=yahoo%7Cheadline%7Cquote%7Ctext% 7C&par=yahoo

Chrysler Cuts Show End For Small Dealer

[MoparDan]

http://news.yahoo.com/s/ap/us_chrysler_dealers

Chrysler moves to eliminate 789 of 3,200 dealers

[MoparDan]

http://www.allpar.com/news/index.php/2009/05/chrysler-dealers-to-be-cut-and-kept/list_of_dealerships/

List of Chrysler Dealers being cut. You'll need Adobe to read it.

[ccbatson]

Fine...refer to it as organized labor...same concept...does that make you happy (as we watch the left flush the American auto industry down the toilet)?

[otter]

Bats,

Not sure if you're responding to my post or another one, but sounds like maybe it's mine.

No, VEBA is not "organized labor" either. Do you know what VEBA is and what its function is? Do you know what the nature of the UAW's representation in GM's managament is? What is the basis of an objection to labor having a voice on the board of corporations anyway?

Ano no, internet message board posts do not "make (me) happy"

I get the impression that you would blame "the left" and "liberals" for your dog getting run over! :) You seem to have a remarkably binary and oppositional view of the world.

O.

[MoparDan]

Excellent commentary with insightful comments.
http://www.allpar.com/weblogs/2009/05/14/automaker-antics/

Automaker Antics (http://www.allpar.com/weblogs/2009/05/14/automaker-antics/)

Some excerpts:
"All Chrysler had to do to get out from under the government’s conditions was repay the loans. But even that’s too much: It’s fairly well accepted now that Chrysler won’t be repaying the initial loan it received from the Bush Administration and probably won’t be repaying the money it’s getting from the Obama Administration to fund its trip through bankruptcy (http://www.allpar.com/corporate/cerberus/bankruptcy.html). The plan now is for the company to repay the next pile of money the feds will give it when it emerges from bankruptcy (http://www.allpar.com/corporate/cerberus/bankruptcy.html) as a new company. (In other words, the company is going to walk on two loans, but it promises to repay the third. You probably shouldn’t try this at your bank.)"
"So Chrysler has a nifty scheme to get around those pesky limits: it’s going to pretend senior Chrysler executives are really Fiat employees “on loan” to Chrysler. Fiat will pay the salaries (nudge, nudge, wink, wink) and the Chrysler brass won’t even have to learn Italian."

"General Motors, on the other hand, is warning of the dangers of government involvement in its business. This is the company that has already received $15.4 billion in government loans and wants another $11.6 billion real soon. And maybe some more later. In return for our national generosity, GM’s own reorganization plan calls for giving the government a large stake in the “reformed” company in lieu of paying off the loans with actual money."
"In a recent government filing, GM said that, as a majority owner, the U.S. government could make it difficult to compete and have a negative effect on its stock price."

"In its report to the SEC, GM said it may 'become subject to new and additional government regulations regarding various aspects of our business as a result of the U.S. government’s ownership in (and financing of) our business. These regulations could make it more difficult for us to compete with other companies that are not subject to similar regulations.'”
"While I know the government doesn’t exactly have a sterling record in the business world, it’s a bit hard to imagine it doing much worse than the gang currently occupying the Renaissance Center."

[mjs]

Once again, commenting on the folks being quoted, not the ones quoting them. The whole GM comment of government interference made me shake my head. Try competing and keeping the stock high when they're liquidating you without the government handout. Its like a bum complaining that when you gave him a $100 dollar bill, you demanded he take time away from pan handling to pick up some trash.

I also have a fear that the opposite will happen. The government now has a vested interest in a more profitable GM so I'm worried about what they'll allow GM to do in search of those higher profits.

[MoparDan]

Once again, commenting on the folks being quoted, not the ones quoting them. The whole GM comment of government interference made me shake my head. Try competing and keeping the stock high when they're liquidating you without the government handout. Its like a bum complaining that when you gave him a $100 dollar bill, you demanded he take time away from pan handling to pick up some trash.

I definitely agree with your analogy; don't come begging for money then turn around & say keep out of our business. Sounds pretty much like what a lot of the financials said where bonuses & other payouts were concerned.
And the beat goes on...

[ccbatson]

VEBA=Voluntary employee benefit association. IOW, the entity that holds the assets for the UAW dedicated to health benefits (and, I suppose other benefits as well).

A tax sheltered account of the UAW...that is not organized labor's assets? Giving the stock to this entity is like putting money in someone's bank account...who is that someone in this case? The UAW.

[Lorax]

Once again, commenting on the folks being quoted, not the ones quoting them. The whole GM comment of government interference made me shake my head. Try competing and keeping the stock high when they're liquidating you without the government handout. Its like a bum complaining that when you gave him a $100 dollar bill, you demanded he take time away from pan handling to pick up some trash.

I also have a fear that the opposite will happen. The government now has a vested interest in a more profitable GM so I'm worried about what they'll allow GM to do in search of those higher profits.

What the government will do is make sure GM develops battery technology, make sure cars get 45 MPG, and insist on accountability, which, unfortunately is a double standard when compared to the lack of accountability given to Wall Street. Bush and Paulson saw to that last year. :mad:

[mjs]

I'm hoping that the way Congress dealt with GM and Chrysler was because they learned they screwed the pooch in their handling of the banking behemoths, but I'm figuring its really because GM and Chrysler bribe well, but not as well as the banks. Regardless, I don't see why errors handling the banking bailout should have been extended to other bailouts.

[ccbatson]

"Battery technology" is not new, exists, and isn't what liberals are trying to make it out to be.

Remember ethanol?? You know, flex fuel? Last year's perpetual motion machine? How is that working out?

[mjs]

Oh, yes ethanol. The fuel used by the Bush administration to kill California's zero emissions law. What are liberals making out battery cars to be? Something that people will want to buy like the EV1s GM refused to sell after the California law was killed? Why would you crush vehicles that have a buyers waiting list?

[ccbatson]

Not enough people wanted to buy the EV1 at the prices charged to sustain viability.

[ccbatson]

Oh...btw, that is a phenomenon called market forces in action. Liberals are likely unfamiliar with what they must think is this alien custom.

[mjs]

In the extremely limited market they sold them in, at the price they were charging, there was a waiting list. I could buy their claim if they opened the market and advertised and then the days of inventory even got near their typical days of inventory or if Toyota wasn't eating their lunch by doing everything GM said was impossible. The reason why I never applied for a big three job was that I like to solve problems and they just like to list reasons they can't be solved. Yeah, market forces say that when an oligopoly ends, the oligoplists need to innovate or die. It works!

[MoparDan]

Some more Chrysler news...
http://www.allpar.com/news/

LaSorda to advise Penske on Saturn bid (http://www.allpar.com/news/index.php/2009/05/lasorda-to-advise-penske-on-saturn-bid/)

May 20th, 2009 by Bill Cawthon
Tom LaSorda, who retired at the end of April as Chrysler (http://www.allpar.com/news/#) president and vice chairman, has a new job: he has joined Penske Automotive Group as an advisor as the auto retailer considers a bid for Saturn’s distribution network.
A spokesman for Penske confirmed an earlier Bloomberg News report that LaSorda had been brought on as a consultant and that America’s second-largest automobile dealer group was looking at the GM division. The Detroit News (http://www.detnews.com/) reports two area dealers, Joe Serra, past co-chairman of the North American International Auto Show and CEO of Serra Automotive, and David Fischer, chairman and CEO of Suburban Collection, a dealer group that includes the world’s largest Saturn dealership (http://www.allpar.com/news/#), are in discussions with Penske about joining forces in a bid for Saturn.
Penske Automotive Group also owns the exclusive distributorship for Smart Cars in the U.S. and Puerto Rico.

Chrysler’s official statement in response to new Obama standards (http://www.allpar.com/news/index.php/2009/05/chryslers-official-statement-in-response-to-new-obama-standards/)

May 20th, 2009 by Bill Cawthon
Chrysler welcomes the President’s announcement of a framework for a single national approach for fuel economy and greenhouse gas standards. We thank the Administration for their leadership.
Today’s announcement begins an important process of harmonizing state and federal fuel economy programs. Chrysler has long been an advocate for a national approach to fuel economy as the most effective way to help the nation achieve energy security and environmental sustainability. With regulatory clarity and certainty, Chrysler and its alliance partner, Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html), will now be able to concentrate their resources on developing a nationwide fleet of clean, fuel-efficient vehicles that will help support its revitalization and benefit American consumers.
These fuel-efficient vehicles will feature both improvements to conventional technology and technology that is entirely new. For example, Chrysler will soon introduce an all-new, high-volume V-6 engine that will deliver up to 8 percent improved fuel economy across the company’s current vehicle lineup. Chrysler’s alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) will initially deliver consumers a world-class small engine and overall powertrain technology that will rapidly bring to market even more fuel-efficient, environmentally friendly small cars.
Chrysler’s entirely new technology will be found in vehicles developed by ENVI, an organization within Chrysler that is focused on electric vehicles as its primary clean-vehicle technology. Chrysler’s product plan includes the introduction of several production electric vehicle models by 2013.
We look forward to working with the Obama administration and others as this process moves forward toward an outcome that is economically and environmentally sustainable.

[Det_ard]

In the extremely limited market they sold them in, at the price they were charging, there was a waiting list. I could buy their claim if they opened the market and advertised and then the days of inventory even got near their typical days of inventory or if Toyota wasn't eating their lunch by doing everything GM said was impossible. The reason why I never applied for a big three job was that I like to solve problems and they just like to list reasons they can't be solved. Yeah, market forces say that when an oligopoly ends, the oligoplists need to innovate or die. It works!

So a company should keep selling a huge money-loser because there are people who'll take the product at the hugely subsidized price? GM lost a ton of money on every EV1. If they sold more they'd lose more. It had limited appeal, serious deficiencies and the proof that it was a dud of a product and of a concept in general is that in the years since the demise of the EV1 no major automaker has seriously pursued the EV market. It was an experiment that showed that EVs weren't commercially viable products.

[mjs]

I don't want to continue to hijack this thread on the Latest Chrysler News. Lets discuss it on the 35.5 mpg thread.

[MoparDan]

http://www.allpar.com/news/

Chemical man to head Chrysler Group (http://www.allpar.com/news/index.php/2009/05/chemical-man-to-head-chrysler-group/)

May 20th, 2009 by DaveAdmin
Chrysler LLC has announced that C. Robert Kidder, former Chairman of Borden Chemical and of Duracell International, will become Chairman of Chrysler Group LLC, the company to replace Chrysler. The name “Chrysler Group” was used by Daimler for the former Chrysler Corporation.
Kidder is currently on the board of directors for three companies - Morgan Stanley, Schering-Plough, and Microvi Biotech. He has also served with consulting firm McKinsey and Co., and is currently Chair and CEO of investment firm 3Stone Advisors LLC. He holds an M.S. degree in Industrial Economics from Iowa State University and a B.S. degree in Industrial Engineering from the University of Michigan and lives in Columbus, Ohio.


Chrysler Group LLC to get new Chairman (http://www.allpar.com/news/index.php/2009/05/chrysler-group-llc-to-get-new-chairman/)

May 20th, 2009 by Bill Cawthon
C. Robert Kidder, former chairman of the board at Borden Chemical and Duracell International, will become Chairman of Chrysler Group LLC after it completes its reorganization and its alliance with Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA. He will succeed Bob Nardelli, who will take a advisory position with Cerberus Capital Management.
“We are most fortunate that Bob Kidder will lead the new company through its transformation,” said Nardelli. “My number one priority has been to preserve Chrysler and the livelihoods of thousands of people who depend on its success. With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward.”

[MoparDan]

Wow! The guy gives a great opinion on his weblog!
http://www.allpar.com/weblogs/2009/05/22/keeping-the-hysteria-down-the-dirty-dozen/

Keeping the hysteria down: the dirty dozen (http://www.allpar.com/weblogs/2009/05/22/keeping-the-hysteria-down-the-dirty-dozen/)
May 22nd, 2009 by DaveAdmin
Let’s do some quick reality checks on the hysteria surrounding the automakers.
1) Chrysler warranties: the company is not going to be in bankruptcy (http://www.allpar.com/corporate/cerberus/bankruptcy.html) forever. It seems reasonable to assume that the warranties will go back into full force as soon as Chrysler Group buys the main assets of Chrysler LLC. What’s more, when Chrysler said they might not be able to honor a widespread defect, I suspect that has a lot to do with their inability to buy parts or run their plants.
2) Nobody is “twisting” bankruptcy (http://www.allpar.com/corporate/cerberus/bankruptcy.html) law here. Bankruptcies are always like this — a big morass where most people lose their shirts, but lawyers and executives tend to come out with millions. And, no, it is not unheard of for retirees to keep part of their pensions.
3) Obama is not forcing Chrysler or GM to slash its dealer count. They intended to do that before and made numerous public statements about it. It’s all in back issues of Automotive News (http://www.autonews.com/).
4) Obama is not, as far as I know, behind every little action of GM and Chrysler, nor would he probably want to be. I’m pretty sure he knows that his knowledge of the industry is minimal. On the other hand, I think he knows he can’t trust auto executives, either. There needs to be a balance of oversight and independence, and I’m pretty sure Obama knows this and respects it. Decisions made by his team have so far been minimal, as far as outsiders can tell. The only cases where people are positive there has been Obama influence was cutting the Chrysler ad budget in half (which seems to have been a sensible move, given that the ads are still running on a saturation schedule), asking for Rick Wagoner’s resignation (by no means a bad move), and being a party in union and lender negotiations.
5) For all the flaws of Obama’s participation, the alternative was the Chapter 7 liquidation advocated by some politicians, or the unlikely long-term Chapter 11 proceedings advocated by other politicians. Nobody came forward with a better idea - one that would let the United States retain a key industry and a huge number of jobs.
6) Which is not to say that I approve of everything Obama or Judge Gonzalez has done.
7) The media seems to give a lot of credence to that law firm which has been harassing Obama through Chrysler. Their statements, though, are laughable as legal documents. While legal arguments tend to be rational and clear, White & Case meander around, throwing accusations at the White House and government, and making legal points almost as an aside. Looking at their filings, I have to wonder whether their primary goal is to serve their clients or see Barack Obama lose his next election. I also have to wonder about anyone, pension funds included, who would use White & Case after reading their past work.
8) Fiat will not, according to current plans, own a majority of Chrysler.
9) The UAW will not control Chrysler. People have been reporting this even though they know better. The UAW gets no voice. The VEBA, which is accepting less “cents on the dollar” for its debts than the secured vendors, will end up with 55% ownership but no control other than a single board member. That ownership is worth roughly $1 billion by my seat of the pants valuation, and is meant to substitute for over $10 billion. Do you still think the UAW is being put “above” the secured creditors, who got $2 billion plus some ownership in exchange for $7 billion in debts? And were you aware that many of those creditors appear to have purchased the debt at a substantial discount?
10) The Treasury plans to hand off Chrysler as soon as it can. By 2012, I would not expect the U.S. government to have any ownership.
Is this socialism? I frankly don’t care. My life is not ruled by intractable dogma or names. I like social security because it has made a vast difference in one of America’s great humiliations - poor, homeless war heros begging in the streets and dying of exposure in the winter. I have no problem with contributing my share, which is probably double what yours is, since I’m self-employed and pay both sides. I am perfectly happy to pay for medicare. (I would prefer not to pay unemployment insurance, though, since I have only very rarely been eligible to collect it. Why do they collect unemployment from part-time and self employed people, anyway?)
The fact is, you can’t run a nation on dogma alone. If we had done so, we’d never have gotten started. We’d have split up before the Revolution because of the “all men are created equal” dogma. I don’t mean to countenance slavery here, but from the very start we’ve had a nation of compromise. We tried having an extreme states’-rights country, and it fell apart quickly. So we replaced it with a stronger Federal government. In World War II, to keep things together, the government took over whole industries and infringed on property rights in a way which, today, would be considered heretical to the free market which we have made our religion. But a totally free market doesn’t work; Adam Smith himself said as much. A free market ends up being consolidated into a set of monopolies or oligarchies, as we found out in the 19th and 20th centuries. So we started regulating it. Is that socialism? Does it matter?
There is a balance we have to walk, between government control and anarchy, between capitalism and socialism, between regulation and deregulation. It’s a balance corporations have been walking between centralization and decentralization, control and worker autonomy. If you go to either extreme, you suffer. Finding the right balance is far harder than picking an extreme view and sticking to it, but it’s the only way.
This leads me to –
11) I’m tired of people calling the Chrysler deal socialism. Many of these people also call Social Security socialism. Most don’t complain about the Federal highway system, which is as socialist as it gets. They don’t complain that the FCC lets them get sound on any radio they buy, without worrying about whether the Sony will pick up Z-FM or whether the Panasonic will get X-FM2, and whether either of them will cause their garage door to open or their pacemaker to stop. But you know, the FCC is a great example of government interfering with private industry. So is the FDA, demanding that the drugs we take for arthritis won’t cause strokes. Or demanding that baby formula is actually made with nutrients rather than water and soap. (Does anyone remember the Nestle or Beech-Nut scandals? They didn’t use water and soap, but they showed that corporations can’t be trusted with babies.)
So, in short, I take it for granted that sometimes government will interfere with private industry. That’s a balance, and anyone who says this deal is wrong because the twain are meeting needs a history lesson. If this is bad, I need a pragmatic reason why it’s bad.
Now, since we need a dozen:
12) Chrysler will have vehicles to sell before the Fiats come in. What’s more, they ARE cars people want to buy. A lot of people, if not any snooty pundits. One of my neighbors got a Sebring Convertible (http://www.allpar.com/cars/chrysler/sebring-convertible.html), and now my other neighbor wants a Sebring sedan. There are still people interested in the PT despite Daimler’s 2006 cheapening. Lots of people are still lusting after the 2009 Ram, recently ranked above the Ford, Toyota, and GM pickups in not one but two comparisons. I could go on but I don’t need to, because I have one word for you: CHALLENGER (http://www.allpar.com/cars/dodge/challenger.html).
13) (Baker’s Dozen) Fiat is unlikely to ride Chrysler like Daimler did. Fiat’s approach seems to be far more decentralized; at worst I’d expect them to do to Chrysler what Chrysler did to SIMCA, which is to rationalize their product line a little, lend and borrow technology and vehicles, and lead them to success.
14) (Bad Arithmetic Dozen) Some are calling for Chrysler to extend the length of time dealers will have to stop selling their cars. The reason they set the date they did, was because the next day, they’re likely to be out of bankruptcy (http://www.allpar.com/corporate/cerberus/bankruptcy.html). The more time the dealers get, the longer Chrysler has to stay in bankruptcy (http://www.allpar.com/corporate/cerberus/bankruptcy.html) to avoid penalties.
Chrysler is poised for recovery, if it gets the chance. A lot of pundits and politicians, for various reasons, don’t want it to get that chance. Don’t be one of the people holding them back.

[ccbatson]

I heard a media report refer to this deal as "Fiat buying the valuable parts of Chrysler"...true? Meaning that Cerebrus did indeed do what they are designed to do and chop up and sell the assets of their temporary ward (Chrysler)?

[MoparDan]

I heard a media report refer to this deal as "Fiat buying the valuable parts of Chrysler"...true? Meaning that Cerebrus did indeed do what they are designed to do and chop up and sell the assets of their temporary ward (Chrysler)?

This is what I found on the AllPar site about Cerberus:
Though the Cerberus people portrayed themselves as patriots rescuing a great American automaker, Steve Feinberg did not invest his own money to rescue the company from bankruptcy, and tried to link up with numerous Chinese companies. They appear to have been willing to break up Chrysler despite statements that they were keeping the company whole. Tom LaSorda, in his court statements, wrote:

Chrysler sent letters to parties, primarily in China, whom we thought would be potentially interested in purchasing our assets. Over the next two months, several companies, including Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co., expressed interest in purchasing specific vehicles, powertrains, intellectual property rights, distribution channels and automotive brands.

Rumors surrounding an attempted sale to GM, which would have been disastrous for employees at both companies but would have kept assets in the United States, were true; Bob Nardelli called Rick Wagoner in January 2009 to try to restart the merger. GM was not interested.

LaSorda said that Chrysler tried to form alliances with Nissan, GM, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda, and Toyota. The alliance with Toyota suggested by LaSorda and Jim Press would have had Toyota using Chrysler factories to build new products. Toyota quickly rejected the proposal, as did Honda. Both companies have built their factories on farmland rather than re-using industrial land.

Talks with Nissan started in 2007, as rumored. In 2008, Nissan and Chrysler exchanged term sheets, but Nissan could not get the needed financing. They tried again later in 2008, with executives from both companies, but were unable to nail down financing; in January 2009, Nissan was no longer interested.

Talks with Fiat apparently began in March 2008, and were more fruitful.

[jiminnm]

8) Fiat will not, according to current plans, own a majority of Chrysler.
9) The UAW will not control Chrysler. People have been reporting this even though they know better. The UAW gets no voice. The VEBA, which is accepting less “cents on the dollar” for its debts than the secured vendors, will end up with 55% ownership but no control other than a single board member. That ownership is worth roughly $1 billion by my seat of the pants valuation, and is meant to substitute for over $10 billion. Do you still think the UAW is being put “above” the secured creditors, who got $2 billion plus some ownership in exchange for $7 billion in debts? And were you aware that many of those creditors appear to have purchased the debt at a substantial discount?

Dan, these points are not necessarily so.

Fiat may well end up with a majority stake in Chrysler.
http://online.wsj.com/article/SB124218648848214101.html

It's true that the UAW will likely get one Board seat, but the VEBA will initially control the majority of stock and the UAW will control the VEBA. That gives the UAW plenty, if not most, of power typically associated with ownership. The UAW has indicated that it intends to sell much of the stock sooner rather than later, but my guess is that the value may be depressed for some time. So, who knows?

As for the distributions in bankruptcy, well established law places secured creditors at the front of the line for available funds (regardless of what those creditors paid for their debt) or for the property that secures that debt. An unsecured creditor, like the UAW, in the another bankruptcy might get nothing at all. As I've stated before, without the availability of the funds obtained by the secured debt, Chrysler could not have functioned and would have had to file bankruptcy sometime in 2008 (with a very different result than the current filing is likely to produce). When the current holders of that debt acquired it, the discounted price they paid was likely based on their assessment of the secured property's value and not the likelihood of ever being paid back by Chrysler.

[ccbatson]

Will not own a majority....but the largest share? And the only large stockholder in the business of making and selling automobiles...semantics....like "a merger of equals"

VEBA is a intermediary/holding company for UAW assets (in particular the medical benefits of the UAW)...how is that not the same as the UAW owning that 55%?

[ccbatson]

Nope....designed and manufactured while their still was an American automaker behind the wheel.

Besides that...the major determinant for me is the features/performance/utility/value and cost. If the vehicle has an optimum mix, then I am interested.

[otter]

FWIW, the Cherokee was created by AMC, not Chrysler.

O.

[ccbatson]

The name was...this generation is the third (or fourth) after the death of AMC.

[MoparDan]

A nugget of good news.

Chrysler Could Exit Bankruptcy by Next Week
http://www.cnbc.com/id/30948933/site/14081545?__source=yahoo%7Cheadline%7Cquote%7Ctext% 7C&par=yahoo

[otter]

Bats,

The current and previous-genertion Libertys are sold as Cherokees in most of the rest fo the world, but in the US, the Cherokee that was discontinued in the early 2000s or so was the same Cherokee that AMC/Jeep introduced in 1983. DCX did a refresh in the early 90s or so with a new fascia/lights/bumpers, wider tailgate opening and new interior, but this was just a mild facelift. The Cherokee really is a classic design. I brought it up b/c your use of the word 'still' suggested that you thought it was originally developed by Chrysler, before the Daimler takeover. The Cherokee came out in 1983 but Chrysler didn't buy AMC until 1987. OK, that is my anorak moment for today.

O.

[ccbatson]

Already old news as investors rebel against the terms of bankruptcy.

[MoparDan]

http://finance.yahoo.com/news/Chrysler-fights-for-deal-as-apf-15365384.html?.v=6

"The three funds bought Chrysler debt last year and hold a combined $42.5 million of the company's total $6.9 billion in secured debt."

Less than 1%; I doubt the judge is going to hold up progress over these guys. :cool:

[ccbatson]

Don't be so sure...if they are standing on solid legal grounds, the process could easily be derailed. Fortunately, the system does not allow for criminal seizure of someone's property as spelled out in contractual agreements...no matter if it is 1%, or 99%.

[MoparDan]

If it happens, it happens, but I wouldn't hold my breath. Even if they bring the whole shooting match down, they'd be lucky to recoup a fraction even after a liquidation. I realize it's the "principle"...I can't recall how many times I've seen that stance fail against what's practical or feasible.
We'll just have to see how this plays out.

[mjs]

Don't be so sure...if they are standing on solid legal grounds, the process could easily be derailed. Fortunately, the system does not allow for criminal seizure of someone's property as spelled out in contractual agreements...no matter if it is 1%, or 99%.

Which criminal statute are you referring to? You do know that violating a contract is not a criminal activity and that bankruptcy courts routinely cancel contracts. If everyone got what was in their contract, bankruptcy wouldn't be very effective, now would it?

[jiminnm]

Which criminal statute are you referring to? You do know that violating a contract is not a criminal activity and that bankruptcy courts routinely cancel contracts. If everyone got what was in their contract, bankruptcy wouldn't be very effective, now would it?

Bankruptcy courts do cancel and modify contracts, but well established law gives properly recorded security liens precedence over unsecured debt in bankruptcy (and much of chrysler's debt is secured). That frequently means secured creditors in bankruptcy get the property that secures their debt. If this court decides otherwise, I expect those secured creditors to appeal and delay finalization.

[oladub]

I told my wife about this article and her comment was that its probably just that more Republicans own car dealerships than Democrats. Something to watch anyway.

Furor grows over partisan car dealer closings (http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Furor-grows-over-partisan-car-dealer-closings-46261447.html)

"Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans."

However, even one person quoted in the article agrees with my wife. "My hypothesis is that Chrysler dealers, being small businessmen, are more likely to donate to Republicans than Democrats, for predictable reasons. Like any small businessmen, car dealers want lower taxes, a lower minimum wage, fewer regulations, etc."

[ccbatson]

Bankruptcy courts modify contracts...yes, in a controlled fashion determined by precedent and established legal pecking orders as to who is first in line and etc. Obama is trying to circumvent this process...in other words to circumvent the rule of law.

[MoparDan]

http://finance.yahoo.com/news/Judge-OKs-sale-of-most-apf-15396361.html?sec=topStories&pos=2&asset=&ccode=

Judge OKs sale of most Chrysler assets to Fiat
NEW YORK (AP) -- A federal bankruptcy judge late Sunday approved the sale of most of Chrysler's assets to Italy's Fiat, moving the American automaker a step closer to its goal of a quick exit from court protection.

Judge Arthur Gonzalez said in his ruling that a speedy sale -- the centerpiece of a restructuring plan backed by President Barack Obama's automotive task force -- was needed to keep the value of Chrysler from deteriorating and would provide a better return for the company's stakeholders than if it had chosen to liquidate.
"Any material delay would result in substantial costs in several areas, including the amounts required to restart the operations, loss of skilled workers, loss of suppliers and dealers who could be forced to go out of business in the interim, and the erosion of consumer confidence," Gonzalez wrote in his opinion.
"In addition, delay may vitiate several vital agreements negotiated amongst the debtors and various constituents."
As a result, the proposed sale must be approved in order to preserve the value of Chrysler's business and what is ultimately left for its stakeholders, Gonzalez said.
Chrysler has maintained that selling the bulk of its assets to Fiat Group SpA is the only way it can avoid selling itself off piece by piece. If a deal does not close by June 15, the Italian automaker has the option of pulling out.
But a trio of Indiana state pension and constructions funds, which own $42.5 million of Chrysler's $6.9 billion in secured debt, aggressively objected to the sale, saying that it does not provide a big enough return for secured debt holders, while paying off unsecured stakeholders, such as the United Auto Workers union.
The Indiana funds bought their debt in July 2008 for 43 cents on the dollar. Their attorneys have said they would appeal the decision to U.S. District Court if Gonzalez approved the sale.
As part of Chrysler's government-backed restructuring plan, a UAW trust that will provide health care for hourly Chrysler retirees will receive a 55 percent stake in the new company, while Fiat will get a 20 percent stake that can ultimately grow to 35 percent. The remaining 10 percent of the company will be owned by the U.S. and Canadian governments.
In the days leading up to Chrysler's Chapter 11 filing, the automaker struck a deal with the majority of secured lenders to give them $2 billion in cash, or 29 cents on the dollar, to erase the $6.9 billion in debt. But some of the debtholders balked and the automaker was forced to file for bankruptcy protection on April 30.
Besides the Indiana funds, a group of over 300 Chrysler dealers slated to lose their franchises under the company's restructuring also objected to the sale. A separate hearing to address Chrysler motion to terminate 789 franchises is scheduled for Wednesday.
Objections were also filed by the automaker's suppliers, former employees and people with product-related claims against the company.

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/windsor-brampton-re-opening-imminent/

Windsor, Brampton re-opening imminent

June 2nd, 2009
by DaveAdmin
The Windsor Star reported that the minivan plant could be open within two weeks, with Brampton opening later, to refresh the stock of minivans in Canada. CAW Local 444 leader Rick Laporte said management is considering a three-shift operation due to supply constraints, which would avoid a Saturday shift premium and postpone payments to laid-off employees.

Laporte also said that Fiat officials were taking advantage of the break in production to inspect and measure plant equipment.

Leon Rideout, leader of CAW Local 1285, said that supplier issues, including the bankruptcy of the floor pan supplier, could hold up re-opening of the plant, which makes the Challenger, Charger, and 300.

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/chrysler-could-exit-bankruptcy-by-thursday/

Update: Chrysler to exit bankruptcy on Friday

June 2nd, 2009
by Bill Cawthon
Chrysler has asked Judge Arthur Gonzalez to waive an automatic ten-day waiting period to allow the sale of its assets to NewCarCo Acquistions to proceed as quickly as possible and allow the new Fiat-led Chrysler Group LLC to commence operations.

“We are filing a request this afternoon to close the sale as early as Thursday afternoon,” said Chrysler spokeswoman Shawn Morgan. She added the company hopes to get a hearing “between now and Wednesday.”

Judge Gonzalez approved the sale on Sunday and there would normally be a statutory ten-day period between the approval and the actual sale. The waiver was granted on June 2 and Chrysler will exit bankruptcy on Friday.

[MoparDan]

I told my wife about this article and her comment was that its probably just that more Republicans own car dealerships than Democrats. Something to watch anyway.

Furor grows over partisan car dealer closings (http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Furor-grows-over-partisan-car-dealer-closings-46261447.html)

"Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans."

However, even one person quoted in the article agrees with my wife. "My hypothesis is that Chrysler dealers, being small businessmen, are more likely to donate to Republicans than Democrats, for predictable reasons. Like any small businessmen, car dealers want lower taxes, a lower minimum wage, fewer regulations, etc."

She was spot on. In addition, here is an article from AllPar with some interesting statistics.
http://www.allpar.com/news/index.php/2009/06/obama-revenge-hoax-continues-to-spread/

"The 25% of dealers being dropped accounted for 14% of Chrysler’s overall sales; but sales are not the entire story, because many of the dealers are competing directly with other Chrysler (http://www.allpar.com/news/index.php/2009/06/obama-revenge-hoax-continues-to-spread/#)(e.g. a Dodge dealer literally across the street from a Chrysler dealer). Much of this is a legacy of the days when Chrysler-Plymouth, Dodge (http://www.allpar.com/news/index.php/2009/06/obama-revenge-hoax-continues-to-spread/#), and, in particular, AMC/Jeep (http://www.allpar.com/model/jeep/jeep-history.html) sold largely unique product lines."

[ccbatson]

Wouldn't surprise me for a Statist like Obama to target the opposition party.

[MoparDan]

And now, back to the news.
This from AllPar.
http://www.allpar.com/news/index.php/2009/06/dealers-get-another-day-to-prepare-chrysler-drops-planes/

Dealers get another day to prepare; Chrysler drops planes (http://www.allpar.com/news/index.php/2009/06/dealers-get-another-day-to-prepare-chrysler-drops-planes/)

June 3rd, 2009
by DaveAdmin
Judge Arthur Gonzalez has delayed a hearing on Chrysler’s request to terminate 789 of its dealers (http://www.allpar.com/news/index.php/2009/06/dealers-get-another-day-to-prepare-chrysler-drops-planes/#) until Thursday, to give dealers more preparation time; the Senate Commerce Committee is questioning Jim Press and Fritz Henderson about Chrysler (http://www.allpar.com/news/index.php/2009/06/dealers-get-another-day-to-prepare-chrysler-drops-planes/#) and GM’s dealer-dropping plans today. While Chrysler plans to terminate 789 dealers’ franchise agreements, GM is planning to drop around 2,000 dealers in upcoming years.
Judge Gonzalez granted Chrysler’s request to cancel its leases on two Gulfstream aircraft, which are based near Auburn Hills. The leases were signed in 2007.

[ccbatson]

That's nice of the State....having second thoughts on the last election yet libs?

[MoparDan]

More on the dealership situation from Yahoo.
http://finance.yahoo.com/news/GM-Chrysler-say-slashing-apf-15433623.html?sec=topStories&pos=3&asset=&ccode=

GM, Chrysler say slashing dealerships necessary

Chiefs of GM, Chrysler say they regret wholesale closing of dealerships, but had no choice


Ken Thomas and Tom Raum, Associated Press Writers
On Wednesday June 3, 2009, 8:52 pm EDT
WASHINGTON (AP) -- Partners no more, bankrupt automakers and small-town car dealers who are being stripped of their livelihood brought the anguish of their sinking fortunes into the halls of Congress on Wednesday and sparred over the companies' plans to slash franchises nationwide.

"This is our last chance to get it right," General Motors Corp. President Fritz Henderson warned testy lawmakers. Countering GM and Chrysler LLC executives in a Senate hearing room, two dealers who are soon to have their franchises wrenched away appealed for help.
"I am the face of GM and Chrysler in my town," said Peter Lopez, a Spencer, W.Va., dealer unlucky enough to be selling the brands of both fallen automakers.
Russell Whatley, a Chrysler-Dodge-Jeep dealer in Mineral Wells, Texas, said his grandfather opened the business in 1919. "A 90-year investment is just gone," he said. He called Chrysler's actions "wasteful and devastating."
Lawmakers expressed sympathy for the dealers and some impatience with the automakers. But retrenchment is inevitable as taxpayer-supported GM and Chrysler fight to stay afloat once they emerge from bankruptcy protection.
Chrysler President James Press told the hearing of the Senate Commerce Committee his company was "working hard to achieve a soft landing" for dealers. But if underperforming dealers aren't selling cars, the company can't return to profitability, he said.
"I think `soft landing' is wishful thinking," Sen. Frank Lautenberg, D-N.J., said as committee members channeled a multitude of complaints from homestate dealers spurned by GM and Chrysler.
Committee Chairman Jay Rockefeller, D-W.Va., suggested both companies were abandoning customers and dealers.
"I don't believe that companies should be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real plan, no real notice and no real help," Rockefeller told the automakers. "That is just plain wrong."
Those dealers "are looking into a black hole right now," while companies seem to be implying "that the dealers themselves are responsible for the companies' problems," Rockefeller said.
Henderson told the committee that 500 dealers had appealed GM's decision to sever ties. As of now, GM has reversed itself on 11 of them, he said. More than 2,700 dealerships are in line to lose their franchises.
"It's unbelievable how we have been treated." Lopez said. He said he had met every financial obligation put forth by Chrysler and GM but still "they want to shut me down."
The auto executives said there are too many dealers, with many representing the same company often competing with each other for sales. Many dealerships date to the 1940s and 1950s, when motorists lived farther apart and Detroit automakers led the world in sales, they said.
After hemorrhaging customers for decades and losing market share to foreign competitors, the two automakers said their companies need to scale back all their operations to become leaner and return to profitability.
Chrysler is expected to emerge from bankruptcy protection within the next few days. GM filed for Chapter 11 protection on Monday and its officials said they hope to be able to emerge as a new company in 60-90 days.
To save money, GM, perennially one of the biggest spenders in Washington on lobbying, said it has terminated contracts with a dozen lobbying firms it has used to help make its case in Washington. The company reported spending $2.8 million on lobbying for the first three months of 2009, $500,000 of which went to outside lobbying firms, according to the nonpartisan Center for Responsive Politics.
GM spokesman Kerry Christopher said the company would retain its in-house lobbyists, who work on health care, tax, trade, safety, environmental and other issues.
A GM statement also said the company's political committee stopped making campaign contributions to federal candidates in January and plans to continue the freeze all year.
Lawmakers argued that the dealership closings will put thousands of people out of work and offer few savings to GM or Chrysler, which have received billions of dollars in federal aid. The industry, in response, says taxpayers' investment is best protected by shedding unprofitable operations and strengthening the bottom line as fast as possible.
"It's not our place to change your decision," Sen. Kay Bailey Hutchison, R-Texas, told the auto executives. "But it is our place ... to make sure that everyone is treated as well as can be in these circumstances."
Chrysler has identified 789 dealerships it plans to close next week, about a quarter of the company's dealership network. Dealers received only three weeks' notice.
General Motors told 1,100 dealerships it does not plan to renew their franchise agreements in late 2010 and expects to shed an additional 900 dealerships through attrition and by selling or discontinuing its Hummer, Pontiac, Saab and Saturn brands.
Chrysler says its departing dealerships have resold or redistributed about 90 percent of their inventory and parts through a company program. But dealers being let go want the Obama administration to give them more time.
"We have an eight-month supply of vehicles and only three weeks to clear them out," Whatley told the committee.
GM said the dealers it's not renewing are being given until October 2010 to close.
Meanwhile, a group of Republicans distressed by the Obama administration's temporary nationalization of GM is proposing that congressional approval be required before money from the Troubled Asset Relief Program is used to buy a stake in a company.
The lawmakers complained that Congress had no opportunity to review the Obama administration's decision to take a 60 percent ownership of GM.
"General Motors needed a real bankruptcy, not a political bankruptcy," said Sen. Jim DeMint, R-S.C.
"We end up owning 60 percent of the stock and not a single vote was cast on that plan," said Sen. Mike Johanns, R-Neb. Johanns said the amendment, which they hope to consider Thursday, would apply to any money provided after May 29.
The third Detroit automaker, Ford Motor Corp., has not filed for bankruptcy protection and has not taken any federal bailout money. It has also not announced widespread dealership closings.
Car dealers are a potent political force, contributing more than $9 million to federal candidates for the 2008 elections.
Associated Press writers Jim Kuhnhenn and Alan Fram contributed to this report.

[ccbatson]

Why is the automaker so involved in the dealership operation. Aren't they privately owned franchises?

[MoparDan]

http://news.yahoo.com/s/ap/us_chrysler_bankruptcy (http://news.yahoo.com/s/ap/us_chrysler_bankruptcy)

Judge: Chrysler has good case for franchise cuts

http://www.detroityes.com/mb/images/misc/progress.gif

[mjs]

Why is the automaker so involved in the dealership operation. Aren't they privately owned franchises?

I asked somone in the industry that question. Where's the savings to the manufacturer? Its because the manufacturer needs to service the dealerships. Twice as many dealerships means more people in billing, more people confirming warranty claims, more people settling dealer disputes, and more people assisting the dealership with repairs. I assume the decisions regarding who will be cut will depend heavily on volume, how well they get along with the manufacturer, and location.

[lilpup]

Dealerships are the local public face of the manufacturer. If the dealership provides poor customer service or is shady or underperforming it hurts the manufacturer.

[mjs]

Exactly. Its why they put so much into the dealer support and why they are looking for a way to reduce what they spend on it without reducing the value of the service. If a manufacturer has to show each shop how to fix a warranty issue, it will take half as many reps if there's half as many shops. They can also eliminate the bad reps and the shops that struggle with doing what the reps tell them to do.

[MoparDan]

Dealerships are the local public face of the manufacturer. If the dealership provides poor customer service or is shady or underperforming it hurts the manufacturer.

I want to say my source was from an article on AllPar:
It basically stated that "too many dealerships competing for the same customers usually leads to the high pressure approach by sales personnel."

My own take is I can see where it would; at the same time, most people I know who are in sales of any sort usually have an "in-your-face" attitude on everything.
And quoting from a message I posted yesterday:
"The 25% of dealers being dropped accounted for 14% of Chrysler’s overall sales; but sales are not the entire story, because many of the dealers are competing directly with other Chrysler (http://www.allpar.com/news/index.php/2009/06/obama-revenge-hoax-continues-to-spread/#)(e.g. a Dodge dealer literally across the street from a Chrysler dealer). Much of this is a legacy of the days when Chrysler-Plymouth, Dodge (http://www.allpar.com/news/index.php/2009/06/obama-revenge-hoax-continues-to-spread/#), and, in particular, AMC/Jeep (http://www.allpar.com/model/jeep/jeep-history.html) sold largely unique product lines."

We're going to see a lot of politicans & idealogues trying to play both sides of the fence on this:
They're going to complain that both GM & Chrysler need to trim down in order to be competitive; then they're going to complain when both of the companies actually do it. They'll wet their panties with glee when union workers take a hit but have a rash when non-union workers do.

There is no real cut & dried approach to this situation. And I hate to say a lot of good people are going to be out of jobs.

[ccbatson]

Competition done right results in better service at lower costs, not the opposite

[4real]

breaking news, sale blocked
Supreme Court makes the right decision to hold off on sale to Fiat
The country hasn't totally turned into socialism yet. A win for investors

[MoparDan]

http://online.wsj.com/article/BT-CO-20090608-708555.html

Chrysler: Indiana Funds Will Lose Only $5M If Fiat Deal Approved


DETROIT (Dow Jones)--The Indiana pension funds objecting to Chrysler LLC's acquisition by Fiat SpA (FIATY) would lose about $5 million if the deal is completed.
The funds, which stalled the deal after appealing to the U.S. Supreme Court, would receive $12.2 million once the merger takes place, Chrysler disclosed in a filing. The funds spent $17 million to buy the auto maker's distressed debt.
Chrysler wants the Supreme Court to reject an emergency motion from the pension fund group to stop Chrysler from transferring its assets to a new company operated by Fiat.
The auto maker said it would be forced to liquidate if the deal is delayed beyond June 15.
Currently, the merger is on hold until 4 p.m. EDT to give the Supreme Court an opportunity to review the case. The court could issue a decision before then or let the deadline pass without a ruling. In that instance, the appeals court stay would expire and the sale could close late Monday.
================================================== ========

Chances are, if Chrysler is liquidated, they'll get nothing in the end. Then they'll want to sue someone. It's the American Way.

[MoparDan]

http://finance.yahoo.com/news/High-court-blocks-Chrysler-apf-15469093.html?sec=topStories&pos=main&asset=&ccode=

High court blocks Chrysler sale to Fiat
Justice Ginsburg delays Chrysler sale to Fiat

WASHINGTON (AP) -- Supreme Court Justice Ruth Bader Ginsburg has temporarily delayed Chrysler's sale to Fiat.

Ginsburg says in an order Monday that the sale is "stayed pending further order."
The action indicates that the delay may only be temporary.
Chrysler has said a delay could scuttle the deal.
A federal appeals court in New York had earlier approved the sale, but gave opponents some time to file an appeal with the Supreme Court.
================================================== ======
Note the statement, "The action indicates that the delay may only be temporary." This is window dressing as the sale will go through. Feasibility & practicality will win the day.

[ccbatson]

Pesky rule of law...it will take Obama and his cronies some time to break them and get away with it.

[mjs]

Pesky rule of law.

Alex, What is the phrase heard most often in the Bush White House?

[mjs]

Pesky rule of law...it will take Obama and his cronies some time to break them and get away with it.

Not if they use the attorneys that Bush and Cheney carefully selected from thousands of entries.

[MoparDan]

http://finance.yahoo.com/news/Fiat-commits-to-Chrysler-deal-apf-15474020.html?sec=topStories&pos=main&asset=&ccode=

Fiat commits to Chrysler deal despite court delay

Fiat says it won't walk away from Chrysler deal despite US Supreme Court delays

http://www.detroityes.com/mb/images/misc/progress.gif

[MoparDan]

It's a go! :D

http://www.allpar.com/news/index.php/2009/06/chrysler-sale-to-take-place-this-morning/

Chrysler sale to take place this morning (http://www.allpar.com/news/index.php/2009/06/chrysler-sale-to-take-place-this-morning/)

June 10th, 2009
by Bill Cawthon
With the last legal obstacle overcome, Chrysler (http://www.allpar.com/news/index.php/2009/06/chrysler-sale-to-take-place-this-morning/#) plans to close the sale of its “good” assets to NewCarCo Acquisition LLC by 9:00 AM Eastern Time today, clearing the way for it to exit bankruptcy.
To finalize the deal, Chrysler first must transfer $2 billion supplied by the Treasury to its creditors. The Supreme Court’s decision rejecting the challenges by the Indiana pension funds and consumer groups came after the deadline for making the necessary wire transfers had passed, requiring the sale to be put off until today.

[Papasito]

I heard Ferrari bought Chrysler, is that true?
Better them than the Libyans in my opinion

[MoparDan]

I heard Ferrari bought Chrysler, is that true?
Better them than the Libyans in my opinion

Chrysler is being sold off to Fiat. I believe Ferrari is majority owned by the Fiat Group.
I figure the Italians can't do or be any worse than the Germans or Cerberus.

[ccbatson]

Ownership is/will be Obama, then the UAW, then Fiat. Doomed unless the first 2 are ousted, and on shaky ground even then.

[Papasito]

Cerberus Capital Management beat out Magna International and Blackstone Group to buy 80.1 percent of Chrysler from Daimler for $7.4 billion. Cerberus is the private equity firm that hired Wolfgang Bernhard to help set up the deal. Look for Bernhard to head the new Chrysler Holding LLC. The deal leaves the remaining 19.9 percent of Chrysler with the German automaker, which announced the deal today in Stuttgart. Chrysler Corporation - not the new company, Chrysler Holding - retains the pension and health care obligations. And DaimlerChrysler changes its name to Daimler AG (no "Benz").



We'll see how Cerberus handles the ups and downs of the auto industry, an anathema to Wall Street investors. The "merger of equals" between Daimler and Chrysler cost Daimler about $36 billion nine years ago.
http://blogs.motortrend.com/6208520/corporate/sold-chrysler-bought-by-cerberus-for-74-billion/index.html

Interesting. I clicked on their website, and it shows they invested in GMAC.
Either these guys have money to burn, or they are really like companies that have been run into the ground.
http://www.cerberuscapital.com/

[Stosh]

Ownership is/will be Obama, then the UAW, then Fiat. Doomed unless the first 2 are ousted, and on shaky ground even then.

It's inconcievable that someone supposedly well-educated can be this obtuse. Really.

[MoparDan]

From AllPar.
http://www.allpar.com/cars/adopted/fiat/chrysler-fiat-alliance.html

Chrysler-Fiat Alliance: Chrysler Group Reborn
by David Zatz, Organizational Change Consultant (http://www.toolpack.info/)
The new Chrysler Group
(http://www.allpar.com/cars/adopted/fiat/chrysler-fiat-alliance.html#)
Chrysler Group LLC now exists, 55% owned by a pension fund, 20% by Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html), the rest by the U.S. Treasury and Canadian government. Contrary to published reports, Fiat will not own more than 20% of Chrysler at first, and will receive a maximum of 35% of equity unless they choose to buy more on the open market. The pension fund, which has no voting rights, plans to sell their equity as soon as it is economically feasible. These facts must be emphasized due to unreliable pundits’ hysteria over “union to control Chrysler” and “tax dollars spent to give Chrysler to Fiat.”
================================================== ======
That was the opening paragraph. More information in the article after that.

[ccbatson]

55% by the UAW pension fund (heavily beholden to the government), 25% by the government, and 20% by Fiat....Obtuse, am I?

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/petty-leaves-dodge/

Petty leaves Dodge (http://www.allpar.com/news/index.php/2009/06/petty-leaves-dodge/)

June 11th, 2009 by DaveAdmin
Richard Petty Motorsports (http://www.allpar.com/news/index.php/2009/06/petty-leaves-dodge/#) has, according to the AP, laid of nine employees and cut salaries of the remaining staff, due to interruptions in payments from Chrysler related to its bankruptcy. The article noted that Petty “is widely believed” to be negotiating with Toyota (http://www.toyoland.com/) for 2010.
Kasey Kahne, Elliott Sadler, A.J. Allmendinger, and Reed Sorenson race on the Petty team in the Sprint Cup series.
================================================== ======
While being a solid Mopar fan, for some reason this doesn't surprise or disappoint me so much. For starters NASCAR instituted their Car of Tomorrow (COT) program & the cars are almost indistinguishable from each other. There really is no "stock car" in Stock Car racing anymore. Another is that Richard Petty Motorsports(RPM) is in disarray to begin with. They haven't been competetive for years; Kyle Petty is a fan favorite & does a lot of charity work but he rarely finished in the top 20 of any given race. After the merger of GEM Racing & Petty Enterprises was Kyle finally pulled from the seat of #45. Penske Racing uses Dodge & has Kurt Busch in the top 10 with Sam Hornish breaking into the top 25. One reason is the use of Dodge's R-6 engine which Petty Motorsports only recently started using; that would explain Kasey Kahne's sudden improvement. But Kahne has made it clear he isn't happy with RPM & may jump ship to another team. Why RPM is looking at Toyota is a good question. The only real solid Toyota team is Joe Gibbs Racing(JGR) & that's primarily due to it being a well run organization. Although I can't stand Kyle Busch, he makes JGR look even better. RPM is not in the same league with JGR & will probably have a serious learning curve with the "Camry". Despite GM's bankruptcy, the majority of teams use Chevy; I find it surprising that RPM isn't talking to them. Then again, Toyota may be willing to cough up $$ just to secure the contract & use the Petty name.

[ccbatson]

Government Motors and Chrysler are not going to be involved in racing for very much longer...a shame.

[MoparDan]

Without the stickers, could you honestly say the "Avenger", "Impala", "Fusion" or "Camry" bear any true resemblance to the actual
car coming off the line?
NOTE: Dodge currently runs the "Charger".

http://www.nocaroftomorrow.com/images/nocot.bmp

We use Impalas as fleet cars; trust me, the COT version looks nothing like it.

[ccbatson]

Very little resemblance, if any. However, developments like efficient and high performance engines, durable suspension and drivetrain components, etc, most definitely derive from, and/or are enhanced by involvement in racing.

[MoparDan]

Very little resemblance, if any. However, developments like efficient and high performance engines, durable suspension and drivetrain components, etc, most definitely derive from, and/or are enhanced by involvement in racing.

I'll give you points for that. However, to the casual NASCAR fan, they don't see any of that. What they see is the wrapping & if there is nothing distinctive, all the engineering underneath is a moot point. GM & Chrysler will still be involved in racing to a certain extent. It doesn't help Dodge that Chevy has dominated for the past 25+ years & they weren't actively involved during most of that time. Ford put a lot of money towards racing but their overall success in that same time frame is mediocre at best despite fielding good teams & drivers.
My take with the RPM situation is, no matter who the manufacturer is, they're an organization in chaos. For too long, Petty Enterprises relied on the legacy of Richard Petty & fell to the wayside. To be honest, I feel the switch to Toyota will not give them the instant rewards they expect. In the long run, perhaps, but that means Toyota spending a huge chunk of money towards a team that is basically starting from scratch. Maybe they think they'll get the same results they did with JGR, but comparing the two organizations is laughable at best. Tony Stewart jumped from JGR because he did not like racing Toyotas & wanted to go back to Chevy, which he has done with his own team(Ryan Newman being the other driver). The two have had tremendous success so far this season.
A sticking point with a lot of us in Mopar Nation is how NASCAR changes up the rules that basically put Dodge/Plymouth at disadvantages back in the 70s. If you made a certain number of a production vehicle, it could be raced. Mopar put that 426 Hemi in the Daytona/Superbird & dominated...the France family had a fit so they altered the rules to prevent the 426 from being employed in those bodies. A few years back when Dodge introduced the new Charger, they were still working out the bugs. One problem was the rear spoiler which they were able to resolve. After the season started, NASCAR changed the spoiler rule which then affected the aerodynamics of the car. While they worked it out, a few of the Dodge teams pulled out their old Intrepid cars & used them in the meantime.
Ok, that's enough writing for the time being. I have a yard that needs to be mowed. :D

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/

Jim Press attacks dealer myths (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/)

June 12th, 2009
by DaveAdmin
Jim Press attacked several "dealer myths” in front of Congress, defending Chrysler’s actions:

Despite completing a painful restructuring, the New Chrysler (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/#)will retain 86% of Chrysler dealers by volume, and 75% by location.I can empathize with the dealers who were not brought forward into the new company, and can understand their disappointment. This has been the most difficult business action I have personally ever had to take.

He answered four questions which he claimed he heard most in Washington:
Was discontinuing these dealers really necessary to Chrysler’s survival? Press noted that the company’s sales had fallen dramatically, that the dealer channel as a whole was losing money, and that without profits, dealers could not invest in training, people, or facilities, hurting customer satisfaction. He noted that they needed a realigned, new dealer network on the first day of the new Chrysler (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/#) Group. Judge Gonzalez endorsed the move, saying it was “an exercise of sound business judgement” and “appropriate and necessary.”
Do dealers really cost anything? The answer is, yes, primarily due to extra marketing,advertising, and administrative costs (together, $183 million per year according to Press), as well as the need to have “sister vehicles” (Dodge and Chrysler (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/#) or Jeep (http://www.allpar.com/model/jeep/jeep-history.html) and Dodge versions) which he claimed added $1.4 billion in product engineering costs over four years.
My dealer said he was profitable, why not keep him? Press said that in general the dropped dealers were the least profitable in the network. Those that were profitable were often losing money on their new car business and making it up from used cars (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/#).
Many were in poor locations
555 were standalones, not viable in the future without all three brands
Half sold fewer than 101 vehicles per year
44% sell competing brands in teh same showroom; of those, Chrysler is only 12% of their business (as an example, on dealer is profitable, but sold only 24 new Dodges (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/#), with 210 used vehicles; he also sold Buick, Pontiac, Subaru, and Isuzu (http://www.allpar.com/news/index.php/2009/06/jim-press-attacks-dealer-myths/#), and Dodge was only 3% of his new car total).

Are you leaving your dealers “high and dry?” Press answered that every dealer was contacted; financing was arranged to redistribute inventory, including parts and tools; buyers for every unsold vehicle were found; dealers have commitments for 80% of their parts inventory already.

[ccbatson]

So reform the manufacturer's role in dealerships and allow these private business owners to decide what they should do by themselves.

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/iacocca-welcomes-fiat/

Iacocca welcomes Fiat, retirees volunteer (http://www.allpar.com/news/index.php/2009/06/iacocca-welcomes-fiat/)

June 12th, 2009
by DaveAdmin
Former Chrysler (http://www.allpar.com/news/index.php/2009/06/iacocca-welcomes-fiat/#)chairman and CEO Lee Iacocca has signalled his approval of the Fiat-Chrysler alliance (http://www.allpar.com/cars/adopted/fiat/chrysler-fiat-alliance.html), and co-write a welcome letter to Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) and Chrysler (http://www.allpar.com/news/index.php/2009/06/iacocca-welcomes-fiat/#) CEO Sergio Marchionne. The 19,000-retiree-strong National Chrysler Retirement Association publicly offered its assistance as volunteer advisers in a Detroit News (http://www.detnews.com/) advertisement, which stated, “we would be willing to meet with the Chrysler human resources team to determine where help is needed and to identify historically top-producing volunteers to assist you. Just put us to work.”

[ccbatson]

FIat isn't the problem...Obama and the UAW are.

[turkeycall]

mjs, June 4 : Its because the manufacturer needs to service the dealerships.

Is this something like when a farmer takes his bull to a neighbor and says, "I'm here to service your cow"?

I see some similarity there.

[MoparDan]

http://www.allpar.com/weblogs/2009/06/04/two-sides-to-the-dealer-story/

Two sides to the dealer story (http://www.allpar.com/weblogs/2009/06/04/two-sides-to-the-dealer-story/)

June 4th, 2009
by DaveAdmin
On the one hand, dealers employ large numbers of mechanics and salesmen, and more dealerships means more choices for customers. If you’ve been burned by one Chrysler or GM dealership, you can try another nearby, in most of the country. If you need to get something fixed, the proliferation of shops means you can usually find a repair shop nearby – unlike, say, a Subaru owner.
But the dealerships being dropped are ingenuous when they try to rely on their reputation as honest small-town businessmen who have deep roots in the community. Sure, some of them are. As far as I can tell. None of the ones I personally know of which are being booted can make that claim. Some of them have been around for a long time, but they’re run by sleazy characters and make life hard on their customers and employees.
Honest mechanics have told me stories about how they’d charge a customer for parts and never install them. How they’d charge each customer for fluids and supplies that were spread across dozens of people. Stories of untrained kids botching warranty repairs (http://www.allpar.com/fix/index.html) that Chrysler had to pay for. Then there’s the parts markup of 100% – 300% above list price, at least according to the parts counter guy at one of the dealerships losing their franchise.
Of course, there are also the customer stories (http://www.allpar.com/lies.html). Dealers pretending the warranty didn’t cover something so they could charge an outrageous fee. Constantly-botched jobs. High-pressure sales pitches. Stealing customers’ keys. Contracts that change or don’t reflect the verbal deal. Far too many dealers engage in these sleazy tactics. The ability for dealers to be profitable without them is a big reason why Chrysler is dropping so many dealers.
I’m sure there was some politics involved, though not the conspiracy-theorist type of politics. Internal Chrysler politics are much more likely to be an issue. Did the dealer scoff at the idea of carrying another Chrysler marque? Did they stand up and demand higher quality product during the Daimler years? Did they protest the wrong program or refuse to buy extra stock when the company was pushing it? I suspect those are potent issues.
It would probably have helped if Chrysler had made every dealer’s customer ratings, including the fix-it-the-first-time scores, public. I haven’t heard any stories (yet) about five star dealers being closed down.
In the end, it’s hard to say whether every decision was right and proper. I doubt it, but I think the majority probably were. The news media don’t have time to really investigate the stories of each individual tearjerker, to find out whether the sobbing or angry dealership owner really was a pillar of the community – or a guy who’d be should’ve been turned into a pillar of salt.
Dealers are exceedingly important, and I think Chrysler and GM know that. Customers don’t know anything about Chrysler or GM; they know about the dealer they have. If the dealer treats them like dirt, they don’t say “my Chevy dealer treats me like dirt.” They say, “Chevy treats me like dirt.”
If a dealer repeatedly fails to fix a problem, or breaks a car when fixing something else, the customer blames the manufacturer, not the dealer.
Chrysler and GM have had poor communications around the dealer franchises, but they have good reasons for wanting to be able to cast off the dealers that give them a bad rep. I, for one, am hoping they are actually casting off those dealers – and only those dealers.

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/

MultiAir system production announced (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/)

June 15th, 2009
by DaveAdmin
Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) will be fitting the Romeo (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/#) MiTo with MultiAir engines (http://www.allpar.com/mopar.html) and a start-stop system to increase gas mileage by shutting the fuel supply to the engine when the car (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/#) is stopped, and seamlessly restarting the engine when needed. The 1.4 liter engine will be available in 105, 135, and 170 horsepower (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/#) versions.
MultiAir engines (http://www.allpar.com/mopar.html) have 10% more horsepower and 15% more torque than standard gasoline engines (http://www.allpar.com/mopar.html) of the same design; they also reduce particulates and nitrides of oxygen dramatically.
MultiAir is a trademark for an electro-hydraulic valve control system currently used on gasoline (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/#) engines (http://www.allpar.com/mopar.html), and planned for Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) diesel engines (http://www.allpar.com/mopar.html).
Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) is planning to share key technologies with Chrysler (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/#) in the near term, and MultiAir is very likely to make it to mid-sized Chrysler Group vehicles as well as Fiats (http://www.allpar.com/news/index.php/2009/06/multiair-system-production-announced/#) sold in the US (regardless of branding).

[ccbatson]

Big brother Obama shuts off your engine...like it, or not.

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/more-defaults-on-car-loans/

More defaults on car loans (http://www.allpar.com/news/index.php/2009/06/more-defaults-on-car-loans/)

June 15th, 2009
by DaveAdmin
The Detroit News (http://www.detnews.com/) reported that the rate of car payments 60 days or more late has risen 28% in the first quarter, compared with the first three months of 2008. The rate continues to be fairly low, at 0.83% (eight loan payments out of a thousand). Customers seem to have a larger problem making mortgage payments, with 60-day nonpayments rising 62% to 5.22% – five people out of a hundred failing to make payments for at least 60 days.
The hardest hit states for car loans are Mississippi (1.5%), Louisiana (1.4%), California (1.3%), and Nevada (1.3%). Michigan, despite numerous layoffs and factory closures, had a much better rate of 0.55% – better than the national average. These figures predate Chrysler’s two months in bankruptcy, but do reflect the tightening of credit which started in 2008.
The data comes from TransUnion, from random samples of 27 million credit reports. The company expects the number of late payments to get higher, hitting the 1% level experienced during the recession of 2001.

[MoparDan]

http://www.allpar.com/cars/adopted/fiat/fiat-cars.html

Fiat Cars: Making Small Big Again

"Automotive News learned that Chrysler plans to use six Fiat models. One is the Fiat Panda Cross, a 1.3-liter-diesel powered off-road vehicle that gets nearly 40 mpg and would likely be sold as a Jeep in 2011 with a 1.2 or 1.4 liter gasoline engine."
================================================== ==
More information plus pics in the article.

[Detroitej72]

FIat isn't the problem...Obama and the UAW are.

More nonsense from the right wing.

Question: In, say, one year, Chrysler is once again thriving, will you be sad to see that happening? Or, are you hoping for failure, as it would enable you to gleefully boast "see, I told you so"?

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/viper-line-up-and-running-again/

Viper line up and running again (http://www.allpar.com/news/index.php/2009/06/viper-line-up-and-running-again/)

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/

Chrysler inventories lower, still high (http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/)

June 16th, 2009 by DaveAdmin
Chrysler inventories fell during its bankruptcy period, with all factories (http://www.allpar.com/corporate/factories.html) shut down, but were still high by import standards – and close to GM’s inventories. This data was provided by Automotive News (http://www.autonews.com/), covers the United States, and was current as of June 1.
Overall, Chrysler ended the month with 86 days’ supply, or 260,400 vehicles. Dodge trucks (http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/#) were the most plentiful (97 days) followed by Chrysler (http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/#) (93 days), though since many sales (http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/#) are to fleets and there were few if any fleet buys during the shutdown period, those figures might be somewhat misleading. Dodge had 68,700 Rams in stock on June 1 – compared with 42,600 Doge cars and 63,900 Jeeps.
The largest inventory for a true Chrysler vehicle continues to be the PT Cruiser (http://www.ptcruizer.com/), with 158 days’ supply – beaten only by the Mercedes (http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/#)-built Sprinter (http://www.allpar.com/trucks/sprinter.html). The lowest supply of a currently produced vehicle was for the Challenger (http://www.allpar.com/cars/dodge/challenger.html), at 28 days (2,900 units); it was followed by Wrangler (http://www.allpar.com/model/jeep/wrangler.html), with 38 days. Durango and Pacficia continue to be sold down, with just 500 Pacificas left and 2,800 Durangos, and 1,500 Aspens.
A plentiful supply of minivans (http://www.allpar.com/model/m/minivans.html) remains in the U.S. (though Canadian supply is said to be constricted), with 16,000 Caravans (http://www.allpar.com/news/index.php/2009/06/chrysler-inventories-lower-still-high/#) and 18,800 Town & Countries.
The effects of closing dealers’ fire sales will likely not be seen in these figures. Days’ supply must be taken with a grain of salt since sales were artificially depressed by lack of fleet sales, and increased by people hoping to get a bargain from bankruptcy and those dealers which were able to sell off vehicles at low prices before June 1.

[ccbatson]

Good, albeit temporary news about Viper.

[MoparDan]

Good, albeit temporary news about Viper.

Cerberus wanted to sell the operation but I haven't heard what Fiat wants to do with it.

[Bigb23]

That Panda cross looks pretty small for the American off road market.

1804

;)

[MoparDan]

That Panda cross looks pretty small for the American off road market.

1804

;)

You better be peddling fast to reach highway speed. Excellent MPG though... :D

[MoparDan]

Some good news!
http://finance.yahoo.com/news/Chrysler-to-restart-7-apf-15553581.html?sec=topStories&pos=4&asset=&ccode=

Chrysler to restart 7 assembly plants

Chrysler to restart 7 assembly plants June 29 after emerging from bankruptcy protection


By Tom Krisher, AP Auto Writer
On Wednesday June 17, 2009, 5:02 pm EDT
DETROIT (AP) -- Chrysler Group LLC plans to restart seven assembly plants at the end of June after shutting down all of its factories during its six-week stay in bankruptcy protection.

The company on Wednesday confirmed that factories in Sterling Heights and Warren, Michigan; St. Louis; Toledo, Ohio; Brampton and Windsor, Ontario; and Toluca, Mexico, would restart operations June 29. A plant in Detroit that makes the Dodge Viper sports car restarted Monday.
In addition, parts stamping, engine and transmission factories that feed those plants also will restart June 29, Chrysler said in a statement.
The company had shut down all of its manufacturing operations May 4, shortly after filing for bankruptcy protection April 30. But inventories of vehicles made by the eight plants have started to shrink, said spokeswoman Dianna Gutierrez.
The assembly plants that are restarting employ about 15,000 workers, according to Chrysler's Web site.
Restart of the rest of the company's factories will be announced later, the statement said, probably after the normal two-week summer break in which all factories will be closed the weeks of July 13 and 20.
When the factories come back on line, their work will be done under a different manufacturing system, one used in Europe by Fiat Group SpA called "World Class Manufacturing."
Chrysler emerged from bankruptcy protection on June 10, the same day most of its assets were transferred to a new company run by Fiat, which now controls the Auburn Hills, Michigan-based automaker.

[ccbatson]

I think the Viper is a poster child for what liberals want to eliminate in the market, as such, I expect it will go away pretty soon.

[MoparDan]

Back to the topic at hand...
http://finance.yahoo.com/news/Fiat-restructuring-of-auto-apf-2168086156.html?x=0&sec=topStories&pos=3&asset=&ccode=

Fiat calls for restructuring of auto industry in the face of crisis

Thursday June 18, 2009, 7:12 am EDT
ROME (AP) -- Fiat, which has recently taken a controlling stake in Chrysler, called Thursday for a "serious restructuring" of the auto industry, saying the global crisis has worsened the problem of production overcapacity.

Chief Executive Sergio Marchionne held a meeting with the Italian government and unions at the premier's office in Rome to illustrate the group's mid-term program. Premier Silvio Berlusconi attended the talks.
Earlier in June Fiat took on most of Chrysler's assets in exchange for technology and management know-how. The alliance created the 6th largest automaker worldwide, according to Fiat.
"The global crisis has further aggravated the problem of production overcapacity that has been plaguing the automotive industry for years," said a statement released by Fiat after the talks. "A serious restructuring of the automotive industry is now absolutely necessary if it is to be economically viable."
Fiat also said that "far-reaching strategic measures are necessary to achieve an adequate level of critical mass, increase volumes produced for each platform and expand geographic presence." It said the deal with Chrysler was part of that strategic approach.
During the talks, Fiat outlined its production plans in Italian plants. Marchionne called for a concerted effort, saying that "maintaining equilibrium in employment levels in the face of these extremely difficult market conditions is no easy task."

[Detroitej72]

I think the Viper is a poster child for what liberals want to eliminate in the market, as such, I expect it will go away pretty soon.

Some fringe left elements probably would love to see it die, but that is not the opinion of the majority of liberals and moderates like myself.

[jams]

Nope, our plan was to kill Oldsmobile, only 50+ year olds white people drove those......

Are you really a doctor with cognitive ability?

[ccbatson]

Nor I Detroitej72 (you have no idea how much so). The real question is what authority does this "fringe element" have? Obama being a leader of this radical movement is very concerning given the significant share he/the government holds in Chrysler (and more so with GM).

[Bigb23]

The real question is what authority does this "fringe element" have? Obama being a leader of this radical movement is very concerning given the significant share he/the government holds in Chrysler (and more so with GM).

If this is his bedside chatting as a physician, than euthanize me now.

[ccbatson]

Never give up hope that easily BigB.

[MoparDan]

Off topic, but since I started this thread...sorry CC but you left yourself wide open on this one.


Never give up hope that easily BigB.

http://www.adpulp.com/archives/2008/02/26/BARACK-hope-POSTER.jpg

[MoparDan]

And now, back to on topic stuff...

http://www.allpar.com/news/index.php/2009/06/hxc-hemicuda-to-debut-at-sema-in-november/

HXC Hemi Cuda to debut at SEMA in November (http://www.allpar.com/news/index.php/2009/06/hxc-hemicuda-to-debut-at-sema-in-november/)

HXC Performance, a Chicago-based automotive (http://www.allpar.com/news/index.php/2009/06/hxc-hemicuda-to-debut-at-sema-in-november/#) design, manufacturing and consulting firm, will show its new 2011 HXC Hemi ‘Cuda (http://www.allpar.com/model/cuda.html) Convertible at the Specialty Equipment Market Association (SEMA) show to be held November 3-6 in Las Vegas.
===============================================
More info in the article & a few artist rendering pics.

[ccbatson]

The modifiers are still true American enterprises to be applauded. Of course, if they have little or nothing to modify, that would be problematic for them and for the enthusiast consumers.

[MoparDan]

http://www.allpar.com/news/index.php/2009/06/iacocca-to-chrysler-repay-loans-quickly/

Iacocca to Chrysler: Repay loans quickly (http://www.allpar.com/news/index.php/2009/06/iacocca-to-chrysler-repay-loans-quickly/)

June 22nd, 2009
by Bill Cawthon
Lee Iacocca, Chrysler’s CEO the last time it needed financial help from Washington, says the new Chrysler (http://www.allpar.com/news/index.php/2009/06/iacocca-to-chrysler-repay-loans-quickly/#)needs to repay billions of dollars in federal loans as fast as it can.

Iacocca, now 84 and living in California, was not happy to see Chrysler (http://www.allpar.com/news/index.php/2009/06/iacocca-to-chrysler-repay-loans-quickly/#) under government control again, but admitted the alternative was probably liquidation. He said the government’s intervention and new influence should be a powerful motivator to get the loans repaid.
“They’re on you day and night. Their oversight is just too extreme,” Iacocca told the Associated Press. “That’s why our 10-year loan, we paid it back in three years. We couldn’t stand the government. The bureaucracy kills you.”
Iacocca went on to say he has faith in Sergio Marchionne, the new CEO of Chrysler Group and Fiat (http://www.allpar.com/cars/adopted/fiat/fiat-cars.html) SpA, and he’s glad to see Ford (http://www.allpar.com/news/index.php/2009/06/iacocca-to-chrysler-repay-loans-quickly/#), another of his previous employers, getting by without government aid. He added that he would invest in Chrysler if the stock was available and would invest in Ford, but he has reservations about General Motors. Iacocca says GM has more serious problems than Chrysler did.

[ccbatson]

Iacocca has it right...but too late, Cerebrus is out, Fiat, the Union, and Obama are in...it is too late.

[reddog289]

MoparDan , Thanks for the pix of the Hemi Cuda. Eversince the the Challenger came out I have been wondering about the "What If" deal with the Cuda.

[ccbatson]

I suppose, for what it is worth, we could root for Fiat, and hope that they succeed after which they pay back the government (getting them out of the business). However, they are stuck with the Union ownership problem.

[Stosh]

I suppose, for what it is worth, we could root for Fiat, and hope that they succeed after which they pay back the government (getting them out of the business). However, they are stuck with the Union ownership problem.

An obvious case of lack of reading comprehension, or just plain pig-headedness?

I'm going to state this as s l o w l y a s I c a n. T h e y w i l l s e l l t h e s t o c k.

[ccbatson]

Who? Too whom? Why would anyone buy it? Why would the UAW give up control?

[Detroitej72]

Who? Too whom? Why would anyone buy it? Why would the UAW give up control?

I'm sure investors somewhere will be willing to gamble on the stock.

And the UAW would, I'm sure, want to make a profit just like everybody else, thus they would sell their stock.

[douglasm]

I think I've heard this story before. Anyone remember Conrail? It took some time to turn the failed Penn Central around, but the government made a tidy profit when all was said and done.

[Detroitej72]

I think I've heard this story before. Anyone remember Conrail? It took some time to turn the failed Penn Central around, but the government made a tidy profit when all was said and done.

Don't tell that to the right wing, they are happily inebriated in their false logic.

[mjs]

Anyone remember Conrail?

No, but I do like a good story. Please tell it and explain its relevance.


And the UAW would, I'm sure, want to make a profit just like everybody else, thus they would sell their stock.

Are you saying the Ford family dislikes making a profit? Batson, for whatever reason, it never occured to me that this likely means permanent UAW control over management policies. Something they only get now because the management is so weak willed. Up until now, it was possible a real mangement team could have came in and worked around the UAW.

[Detroitej72]

Are you saying the Ford family dislikes making a profit?

I think the Ford family likes to retain control of the company. They have plenty of money without having to resort to selling their stock. I have read that a couple times a year they meet to discuss their vision and perhaps if one member wanted to sell, they would sell to another family member.

I could see the UAW being more like, say Kirk Kerkorian, selling when they will receive a huge payday.

[ccbatson]

The UAW is not likely to sell given that it would just be a matter of time before they became extinct after a sale. The high wages and benefits relative to productivity is unsustainable as is now in very clear evidence.

If they remain in power (thanks to Obama), these companies will be perpetually propped up by tax dollars and falter over time in the absence of true competitive incentives.

[Detroitej72]

We'll just have to wait and see.

All folks who think the UAW is so evil and destructive, I ask, why were times so great in the 50's and 60's with the unions and auto companies? Could it be because people made a decent wage, thus they could afford to buy new cars?

[ccbatson]

Lack of competition, and lack of competition with the unfair advantage of much lower requirements for wages and benefits.

[MoparDan]

No, but I do like a good story. Please tell it and explain its relevance.

This should give you a start.
http://en.wikipedia.org/wiki/Conrail

[mjs]

I fail to grasp how that shows that a company under union control is going to bounce back from bankruptcy. Chrysler needs a new management team that will fire every single one they find drinking, sleeping, or reading the paper or fire the lower level managers that can't. It is only a small percentage of the work force afterall and there is no reason it can't be done while being kind and respectful to the rest of the workforce. Then they need to negotiate deals where management can assign anyone they feel is qualified to do a job to that job. No more operators resting while maintenance guys are called in for OT. Make the operators assist the maintenance guys during an unexpected down time or at least do something that was scheduled to be done during a down shift. Get that and OT and manpower needs will go down and you can afford to give the union guys more per hour. I can't see that happening while the Union has the votes to replace the management team.

[Stosh]

The UAW is not likely to sell given that it would just be a matter of time before they became extinct after a sale. The high wages and benefits relative to productivity is unsustainable as is now in very clear evidence.

If they remain in power (thanks to Obama), these companies will be perpetually propped up by tax dollars and falter over time in the absence of true competitive incentives.

Christ. Obtuse as always, aren't you?

I suppose that the arificially high wages you command versus your actual productivity makes you sooo much more special.

The UAW does not have voting rights or management rights.

[jiminnm]

The UAW does not have voting rights or management rights.

Actually, they will have both in the "new" Chrysler and GM. If they receive common stock, they will have the right to vote those shares. If the shares go to the VEBA, the UAW has the right to appoint those who will administer the VEBA and, thus, vote those shares.

I think the UAW also gets at least one seat on the new boards of the two companies (although, with their majority holdings, more could be added if they're dissatisfied with the operation of the company).

All that said, I suspect that the VEBA may sell a bunch of their shares if the value increases in the short term and reinvest elsewhere for diversification (as well as protecting themselves from having their main asset mostly in the stock of a company that may not survive).

[Stosh]

Actually, they will have both in the "new" Chrysler and GM. If they receive common stock, they will have the right to vote those shares. If the shares go to the VEBA, the UAW has the right to appoint those who will administer the VEBA and, thus, vote those shares.

I think the UAW also gets at least one seat on the new boards of the two companies (although, with their majority holdings, more could be added if they're dissatisfied with the operation of the company).

All that said, I suspect that the VEBA may sell a bunch of their shares if the value increases in the short term and reinvest elsewhere for diversification (as well as protecting themselves from having their main asset mostly in the stock of a company that may not survive).

All in all the UAW has no voting rights. The VEBA has 1 seat. The VEBA is not the UAW. The structure of the new Chrysler board of Directors is heavily slanted toward the Fiat and Treasury directors, 3 for Fiat, four for Treasury, and 1 each for Canada and VEBA. Sounds to me like they are quite outvoted, and realistically, no one will be giving them another seat, even if they moan about the direction of the company.

Of course all this can change if there's some movement on basic health care in the USA.

[MoparDan]

All in all the UAW has no voting rights. The VEBA has 1 seat. The VEBA is not the UAW. The structure of the new Chrysler board of Directors is heavily slanted toward the Fiat and Treasury directors, 3 for Fiat, four for Treasury, and 1 each for Canada and VEBA. Sounds to me like they are quite outvoted, and realistically, no one will be giving them another seat, even if they moan about the direction of the company.

Of course all this can change if there's some movement on basic health care in the USA.

From AllPar
http://www.allpar.com/weblogs/2009/05/22/keeping-the-hysteria-down-the-dirty-dozen/

"9) The UAW will not control Chrysler. People have been reporting this even though they know better. The UAW gets no voice. The VEBA, which is accepting less “cents on the dollar” for its debts than the secured vendors, will end up with 55% ownership but no control other than a single board member. That ownership is worth roughly $1 billion by my seat of the pants valuation, and is meant to substitute for over $10 billion. Do you still think the UAW is being put “above” the secured creditors, who got $2 billion plus some ownership in exchange for $7 billion in debts? And were you aware that many of those creditors appear to have purchased the debt at a substantial discount?"

[mjs]

Thank you MoparDan. Now I understand the reference to Conrail and understand it as a good sign. Now, with more facts, whether the UAW holds or sells its shares seems mostly irrelevant to their chances of rebounding. Though I hope they eventually sell to add more diversity and stability to their retirement funds.

[Det_ard]

From AllPar
http://www.allpar.com/weblogs/2009/05/22/keeping-the-hysteria-down-the-dirty-dozen/

"9) The UAW will not control Chrysler. People have been reporting this even though they know better. The UAW gets no voice. The VEBA, which is accepting less “cents on the dollar” for its debts than the secured vendors, will end up with 55% ownership but no control other than a single board member. That ownership is worth roughly $1 billion by my seat of the pants valuation, and is meant to substitute for over $10 billion. Do you still think the UAW is being put “above” the secured creditors, who got $2 billion plus some ownership in exchange for $7 billion in debts? And were you aware that many of those creditors appear to have purchased the debt at a substantial discount?"

Please correct me if I'm wrong, but I understand that under bankruptcy law the VEBA and other unsecured creditors only get paid after all the secured creditors get paid in full. So if there wasn't enough to pay off the secured creditors in full, the unsecured creditors all get zero. That's the benefit of being a secured creditor, and why banks and others are willing to loan money to companies at low interest rates if the loans are secured by the assets of the company.

The fact that the VEBA got anything at all is a nod to the union's close relationship to the current administration. I was an unsecured creditor when one of my customers went bankrupt. I got zero, Comerica (the only secured creditor) got everything, which worked out to about 60 cents on the dollar.

[ccbatson]

No correction necessary, you have it exactly right

[MoparDan]

Chrysler Labs Website back up & running
http://www.chryslertestservices.com/

Chrysler Scientific Labs and Proving Grounds is an industry leader in engineering, validation and testing services. With vast experience in automotive testing, we are uniquely positioned to understand and meet your specific requirements with an overall turn-key approach. Our highly skilled and experienced staff of engineers, mechanics and technicians, combined with state of the art testing facilities, offer unsurpassed capabilities allowing us to offer you premium customer service in engine and powertrain dynamometer testing, stress and durability development, energy management development, hybrid and electric vehicle battery testing, full scale aero-acoustic wind tunnel analysis and emission and fuel economy testing, in addition to more than 7,500 acres of proving grounds with over 150 "lane miles" of road.

Scientific Labs offers you:

"One stop shopping" for virtually any testing need
Secure, world-class facilities
State of the art equipment
Dedicated, experienced, and knowledgeable personnel
Complete understanding of customer needs and requirements

[ccbatson]

I don't get the point of that post Mopardan. What are you trying to say there?

[MoparDan]

Chrysler ready for plant re-launch

http://www.detnews.com/article/20090627/AUTO01/906270395/1148/Chrysler-ready-for-plant-re-launch

Seven assembly plants and the powertrain and other plants that support them are being dusted off after a temporary shutdown that began April 30 when Chrysler LLC filed for bankruptcy.
The vehicles that will be built again starting Monday are for the new Chrysler company that was formed with Fiat June 10.

[ccbatson]

Now, if they can just get the UAW and Obama out of their business, Fiat (an automaker owner of Chrysler) might have a chance.

[MoparDan]

http://www.bloomberg.com/apps/news?pid=20601087&sid=ab4NLHunBM7k

Chrysler Installs Fiat Production System Before Plants Restart

"Successful implementation of Fiat’s system may cut costs and give the new Chrysler a better chance at profitability when auto sales in the U.S. rise from their lowest rates in almost three decades. Fiat’s plants in Italy and South America have improved efficiency in the past two years, she(Michelle Hill) said."

[ccbatson]

Umm, shouldn't they start with the concept of producing goods and services that customers (Not just Al Gore, Obama, Pelosi, and the other liberal environmentalist wackos) want at the best prices

[MoparDan]

Three Dodges make top ten finish at Lenox Industrial Tools 301 in Loudon, NH.
http://sports.yahoo.com/nascar/sprint/races/10/results?year=2009

3 Kurt Busch (http://sports.yahoo.com/nascar/sprint/drivers/156) (2)
8 Sam Hornish Jr. (http://sports.yahoo.com/nascar/sprint/drivers/1034) (77)
10 Kasey Kahne (http://sports.yahoo.com/nascar/sprint/drivers/396) (9)

[ccbatson]

other than the stickers and badges, these race cars resemble the sponsor's street cars as much as a 707 resembles a F117.