Latest Chrysler News

[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...043001639.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/20090...-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

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 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.
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

April 30th, 2009
by DaveAdmin
The Detroit Free Press wrote that the new Chrysler will not include eight factories 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 plant, Viper and associated machinery, Newark [[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, one of the truck plants, Belvedere, etc. The former Outer Drive Stamping Plant [[Mt. Elliott Tool and Die) may also be included.

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-...01-704043.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

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.
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...asset-auction/

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 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 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 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 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.
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?
May 4th, 2009
by DaveAdmin
Fiat 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, Opel, Saab, Vauxhall, and its share of Chrysler. In return for keeping most of GM Europe’s plants running, Fiat has asked for around $7-9 billion in financing from countries with Opel and Fiat 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 Group would retain Ferrari and Maserati. [[information from Automotive News)

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. 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...rysler-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.

[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

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

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

May 6th, 2009
by Bill Cawthon
The Detroit News 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

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

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 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 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.