Comments on: Chrysler Shutting Down During Bankruptcy?

By: cardeveloper

cardeveloper — Fri, 01 May 2009 08:56:58 +0000

I want to understand more about the Obama covered warranty plan? Is his statement in any way legally binding? What is the govt warranty plan? Anybody?

By: GS650G

GS650G — Fri, 01 May 2009 06:16:15 +0000

Unemployment at 80% pay. Nice. Most laid off workers are lucky to get 20 or 25% at best. And guess who pays for that?

By: toxicroach

toxicroach — Fri, 01 May 2009 04:41:18 +0000

Here’s what I don’t get: GM and Ford are struggling to survive. The market it is just too small.

So what do the “We must have a transportation industry” guys advocate? Keeping the weak sister around to suck up 10% of the market just long enough to kill the other two. It’s really clear thinking!

Cause AIG got a bailout! Or something!

By: akear

akear — Fri, 01 May 2009 03:04:09 +0000

I should have said superpower. Everything is pretty crappy right now.

By: psarhjinian

psarhjinian — Fri, 01 May 2009 02:53:30 +0000

This is a joke industry. A nation that cannot produce its own transportation is not really a nation at all.

Define “cannot produce it’s own transportation”? Neither Canada nor Finland have native auto industries, do they count as nations?

By: akear

akear — Fri, 01 May 2009 02:04:37 +0000

Poor Obama will be dragged down by Detroit.

This is a joke industry. A nation that cannot produce its own transportation is not really a nation at all.

By: lahru

lahru — Fri, 01 May 2009 00:59:30 +0000

you know i like what has happened today. all involved are trying to do their best to weather the storm created by others. Yes, mistakes have been made. But there are many domestic automobiles out there with as many miles as any foreign owned companies cars and trucks. Watched a portion of the webcast tonight and my take is that yes management of domestics has led all to seek tomorrows profit instead of next years. I believe when its all over we will all be glad for the angst we’ve all been put through.

29 year veteran of auto sales.

By: indi500fan

indi500fan — Thu, 30 Apr 2009 22:34:34 +0000

The union folks are gonna get 80% pay during the shutdown (recently renegotiated from 95%). The company supplements the state unemployment sum up to the 80% amount. So that will burn some of the DIP.

By: guyincognito

guyincognito — Thu, 30 Apr 2009 22:29:29 +0000

“And if Fiat is wrong and Chrysler will halt operations during bankruptcy, what does Auburn Hills need $3.5 billion in government DIP financing for?”

Bob Nardelli’s severance package.

By: lw

lw — Thu, 30 Apr 2009 21:42:43 +0000

Another thought.. Say you just bought a Chryco last week, and it needs something fixed…

Should be fun to watch the dealers decide if they are going to do warranty work until the judge makes a ruling on paying for it.

Anything near Chrysler is going to get jacked up ASAP… The GM boys are going to be pissing their shorts over the next week or two watching it all happen.

By: lw

lw — Thu, 30 Apr 2009 21:37:25 +0000

Seems like Chryco would need a few billion just to cover legal fees and to give the judge some cash to spread around.

If I understand things, Chryco takes the money for cars once they are financed by the dealer. So my thinking is that every single car on every lot could sell tomorrow and Chryco wouldn’t get a dime.

In fact they would owe money to pay for incentives and such. So without a few billion, I would guess that they the entire supply / sales chain would implode and leave nothing for Fiat to work with.

By: onewheeldrive

onewheeldrive — Thu, 30 Apr 2009 21:17:17 +0000

The rumor floating about the steel industry is that US Steel demanded COD for its steel yesterday, which would cause the stamping plants to go down.

By: OverheadCam9000

OverheadCam9000 — Thu, 30 Apr 2009 21:00:59 +0000

Can GM be far behind? (As in tomorrow, May Day (!))

By: JG

JG — Thu, 30 Apr 2009 20:22:02 +0000

“…current Chrysler will continue its normal business operations and the US Treasury and the Canadian government will provide the company with financing in order to allow the performance of all its obligations towards the employees and to fund its on-going needs.”

“Normal business operations” = sucking money out of government coffers.

“allow the performace of all the obligations towards the employees and to fund its on-going needs.” – make payroll, keep the heat on so the pipes don’t freeze, and keep the raiders and bandits out of the plants.

By: no_slushbox

no_slushbox — Thu, 30 Apr 2009 20:20:43 +0000

Does this mean I won’t be able to buy my special edition “Rattlesnake” Viper, with loose bolts dropped in all the hidden crevices.

By: indi500fan

indi500fan — Thu, 30 Apr 2009 19:55:54 +0000

Looks like the shutdown already happened:

http://freep.com/article/20090430/BUSINESS01/90430058/Chrysler+s+filing+triggers+shutdown

By: daveJ

daveJ — Thu, 30 Apr 2009 19:44:21 +0000

“And if Fiat is wrong and Chrysler will halt operations during bankruptcy, what does Auburn Hills need $3.5b in government DIP financing for?”

word up, Ed. i’m curious if the Detroit Bureau piece is the only one to contradict what’s in the corporate press releases… search engines, here i come!