Chrysler News

[MoparDan]

Didn't mean it as an attack on you or the reporting. I appreciate your updates and figured you'd know the background of the Chrysler CEO. I meant it as a criticism of him and background on why for those that didn't already know it.

No prob. I need to get out of the defensive mode due to the environment at times. But you're right about him. Couple that with the Daimler fiasco & it's a real barn burner with the current situation.

[jiminnm]

I understand what you're saying, but the initial creation of these funds were through legacy wealth- unless you are part of that class, they you don't get to play.

The sludge funds INVEST in the mediums you mention, which in better days was forbidden, due to the tenuous nature of who they represent. They were designed for quick in and out profits, and through the dereugulation of the markets, they were allowed to blossom.

Not to minimize the effect their failure would have on the economy, but again, they shouldn't have been allowed to exist in the first place.

I think you misunderstand. The mediums [[pension funds, charities endowments, insurance companies, etc.) that I mentioned invest in hedge funds and represent about 60% of the investments in hedge funds. The remaining 40% are Accredited Investors. Look at the losers from the Bernie Madoff swindle and you'll find college endowment funds, pension funds, charitable organizations and more. It is not the other way around.

Hedge funds began in the late 1940s or early 1950s. Initially, investors were primarily Accredited Investors, but that quickly changed. Legacy wealth is irrelevant. Whoever has accredited status [[http://www.sec.gov/answers/accred.htm )can invest in a hedge fund. It's been estimated that 8-9% of US households would qualify as accredited.

[mjs]

The hedge funds, per se, aren't the problem and the ownership is irrelevant. The reason both Clinton and Bush won so many arguments was that they could stay on topic and get others off of it so they could control the answer by controlling the question.

The proper question to pose is whether a group should be allowed to short a stock while controlling its debt? Its simple and easily enforceable. Its not should we outlaw hedge funds? They escape an enforceable definition. Its not should we open up accredited investors? It would be a disaster to allow unsophisticated people with very little money to become involved in ultra high risk unregulated investments. Its not should hedge funds fall under SEC scrutiny? They didn't want it because they can't effectively regulate something ultra high risk.

If you don't propose a workable solution, you're just another cry baby. Don't let them make you a cry baby.

[Lorax]

I think you misunderstand. The mediums [[pension funds, charities endowments, insurance companies, etc.) that I mentioned invest in hedge funds and represent about 60% of the investments in hedge funds. The remaining 40% are Accredited Investors. Look at the losers from the Bernie Madoff swindle and you'll find college endowment funds, pension funds, charitable organizations and more. It is not the other way around.

Hedge funds began in the late 1940s or early 1950s. Initially, investors were primarily Accredited Investors, but that quickly changed. Legacy wealth is irrelevant. Whoever has accredited status [[http://www.sec.gov/answers/accred.htm )can invest in a hedge fund. It's been estimated that 8-9% of US households would qualify as accredited.

It looks as though you've made my argument for me- based on these figures, 8-9 % of households may qualify for accreditation, a smaller percentage would actually invest, which roughly equates to the elite upper percentile of those with disposable income to invest- I feel no compunction for those who lose their gambling money.

As far as hedges investing in other media- I am right that with deregulation, these riskier organizations were allowed at an accellerated pace during the last 10 years, and in fact were encouraged by government, to invest in derivatives and other riskier investments.

Madoff was a private investor, and I blame the heads of these charitable organizations and pension funds for clubbing around with the likes of a Madoff [[there are others) and it goes back to this legacy wealth argument.

Those who head foundations and pension funds are largely well-connected elitists who really believe that with impunity they have the bill of fare for the rest of us. Look where it got us.

[FlyingJ]

This is awfully creepy & stinks of Chicago Machine;

http://gatewaypundit.blogspot.com/20...-chrysler.html

[MoparDan]

Chrysler Could Exit Bankruptcy by Next Week: Source

http://www.cnbc.com/id/30948933/site...t%7C&par=yahoo

[MoparDan]

From AllPar
http://www.allpar.com/news/index.php...ehicle-grants/

Chrysler applies for electric vehicle grants

May 26th, 2009
by DaveAdmin
According to the Scoop, Chrysler has submitted three proposals for $448-million in grants to the U.S. Department of Energy [[DOE), to rapidly bring vehicles and plug-in hybrid-electric vehicles to market. The proposals fall under the DOE’s Electric Drive Vehicle and Component Manufacturing Initiative, and its Transportation Electrification Initiative. The programs represent a 50/50 cost-share.
John Bozzella, Senior Vice President—External Affairs and Public Policy, Chrysler , proclaimed, “Without U.S. innovation and production capacity, we will simply trade batteries for oil in the pursuit of transportation energy.� China has been actively seeking and developing sources of lithium, which is unevenly distributed with large supplies discovered in Asia, South America, and North America.
The $365-million submission for the Transportation Electrification Initiative would to establish a nationwide demonstration fleet of more than 365 test-fleet vehicles, using 100 minivans and 100 Rams across a range of climates and customer types. Partnerships with utilities, governments, and companies have already been established. The remainder of the 365 vehicles would be minivans used by the Post Office in delivering mail in four regions; agreements with utilities have already been established for charging.
Another grant for up to $83 million would establish a new technology and manufacturing center in Michigan, to house development, testing and electric-drive component manufacturing, along with final assembly of electric vehicles. The complex would be functional by 2010 and produce more than 20,000 units per year.

[MoparDan]

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.

[Novine]

"This is awfully creepy & stinks of Chicago Machine;"

Fake controversy. Most car dealers are Republicans and donated to Republican candidates. The majority of dealerships that are closing are going to be Republicans. People who actually understand statistics have analyzed the claims and called them phony.

http://www.fivethirtyeight.com/2009/...publicans.html

[econ expat]

fake controversy, yep
Advertising=sales
Dealerships=visibility
every dealer sign= visibility, the more the better
Car dealers flock to 'dealer rows' for that very reason[[ex.- former Livernois strip)
Cost to manufacturer for dealerships very little
The manufacturer mandates redesigns, etc to keep their 'advertising profile' modern and improved.
Pity the dealers that built all the new showrooms, hired large crews and suddenly are told they are not needed any more, good bye, you and your employees are out of luck.
That article did make one 'interesting phrase'- the real story is the dealers that will remain'
Think about it- look at the list of dealers around Detroit that are scheduled to close- then read between the lines. What dealers are remaining? And how many of those dealers do you really trust?
No need to mention names, but there are some reputable high volume dealers on the list to close and some that remain would never get my business.
Looking at the Detroit area closings, one can see who the 'politically powerful' dealers are, and it looks as if they may have had a little input.
Sales volume- ha! Why is neither dealer in Lapeer County on the list? A county that size with 2 dealers.

[MoparDan]

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.

[4real]

Chrysler sale is on hold.
Supreme court makes correct decision. The law is followed, not politicized.
The country isn't totally socialist yet.

[MoparDan]

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.
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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.

[MoparDan]

http://finance.yahoo.com/news/Fiat-c...n&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

[Novine]

"Chrysler sale is on hold.
Supreme court makes correct decision. The law is followed, not politicized.
The country isn't totally socialist yet."

There are two outcomes for Chrysler, the partnership with Fiat or liquidation. The Indiana pension funds want to see Chrysler liquidated which will cause tremendous damage to Indiana and Michigan. Daniel Howes is trying to play the game of being Mr. "Conservative Principles" while refusing to acknowledge that the actions of Indiana and others would destroy Chrysler. Someone needs to call him on his unwillingness to be honest with his readers.

http://detnews.com/article/20090609/...new-legal-road

[MoparDan]

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


Chrysler-Fiat Alliance: Chrysler Group Reborn
by David Zatz, Organizational Change Consultant

The new Chrysler Group
Chrysler Group LLC now exists, 55% owned by a pension fund, 20% by Fiat, 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.

[MoparDan]

http://finance.yahoo.com/news/Chrysl...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.

[MoparDan]

http://www.allpar.com/news/index.php...-headquarters/

Magna to build on former Chrysler headquarters
July 21st, 2009
by DaveAdmin
Canadian parts supplier Magna International, which is currently bidding for Opel, will build a new seating plant on the former site of the Chrysler Corporation headquarters in Highland Park, Michigan. The site was abandoned after the corporate offices were built in Auburn Hills.
Automotive News reported that the new plant will start production in May 2010, and will employ around 400 full time people; customers are expected to be GM and Chrysler. Michigan will provide a state tax credit of $4.5 million over seven years.

[MoparDan]

More info on the Magna situation.
http://www.bloomberg.com/apps/news?p...d=a7ect0_RcjUY

Magna Plans Michigan Plant to Make GM, Chrysler Seats [[Update2)

July 21 [[Bloomberg) -- Magna International Inc., Canada’s largest auto-parts maker, said it will establish a new plant with more than 400 workers in Michigan to supply seats to General Motors Co. and Chrysler Group LLC.
The Highland Park factory will open in May, the Aurora, Ontario-based company said today in an e-mailed release. Magna will get a state tax credit valued at $4.5 million over seven years and may receive a $1.5 million abatement from Highland Park, Michigan Economic Development Corp. said in a statement.
Magna is moving to gain business in the U.S., where parts suppliers are struggling because of lower production of cars and trucks as vehicle sales tumble. Lear Corp., the world’s second- largest maker of auto seats, is in bankruptcy reorganization.
GM accounted for 21 percent of Magna’s revenue last year, while Chrysler provided 12 percent, according to an annual regulatory filing. Magna has been picking up business from partsmakers that are liquidating or restructuring, Co-Chief Executive Officer Donald Walker said in a June interview.
“This will create employment, and the key to us right now is jobs,” said Robert Ficano, chief executive of Wayne County, where Highland Park is located.
Ficano said in an interview that he has been speaking with Magna executives, including founder and Chairman Frank Stronach, since 2005 about doing business in the county, which also includes Detroit. The state tax incentives are worth it to bring development to the region, Ficano said.
The new plant may provide 994 indirect jobs, Michigan Economic Development Corp., a state-local agency, said.
The company said 15 of its 240 plants and 4,900 of its 70,000 employees are in Michigan.
Magna rose C$1.11, or 2.2 percent, to C$52.52 at 4:10 p.m. in Toronto Stock Exchange trading. The shares have gained 40 percent this year.
To contact the reporter on this story: Alex Ortolani in Southfield, Michigan, at aortolani1@bloomberg.net.
Last Updated: July 21, 2009 16:21 EDT