Latest Chrysler News

[MoparDan]

http://www.freep.com/article/2009042...04200312?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...returns-to-us/

Marchionne returns to U.S.

April 20th, 2009
by Bill Cawthon
With time running out to reach an alliance agreement and agreements with unions and creditors, Fiat 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’s first-quarter results on Thursday.

================================================== =========
http://www.allpar.com/news/index.php...ysler-demands/

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/Chrysl...510.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...ations-status/

Chrysler lenders’ counter-offer

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 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=

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
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 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
April 27th, 2009 by DaveAdmin
Kurt Busch became the first Dodge driver to lead the NASCAR Sprint Cup standings since the 2008 Daytona 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, 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%
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, 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
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 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
April 26th, 2009 by Bill Cawthon
The United Auto Workers union today announced it had reached an agreement with Chrysler, Fiat 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.
I missed this opinion about Cerberus which was posted on the Allpar site on the 22nd.
http://www.allpar.com/weblogs/2009/0...eds-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/

Post: Chrysler creditor deal concluded

April 28th, 2009
by DaveAdmin
According to the Washington Post, 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 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.

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. 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...eal-confirmed/

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 SpA.

[ndavies]

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

http://www.bloomberg.com/apps/news?p....wQ&refer=home