Bailout Watch 333: Chrysler Seeks an Additional $3b From Treasury and Chrysler Financial Bailout– by Friday

Robert Farago
by Robert Farago
bailout watch 333 chrysler seeks an additional 3b from treasury and chrysler

The day after threatening to extend its production shutdown, Chrysler has officially announced it’s hitting-up Uncle Sugar for another $3b– on top of the $4b recently transferred to its account. At the same time, it’s asking for an as-yet-unspecified amount of U.S. Treasury “investment” in Chrysler Financial. As duly appointed guardians of the public trust, the Treasury Department “declined to discuss the talks.” “We’re in touch with the automakers and their financing sources and continue to evaluate their financing needs,” Treasury spokeswoman Brookly McLaughlin said on Sunday. Speaking to reporters at the don’t call it the Detroit Auto Show, ChryCo CEO Bob Nardelli was equally tight-lipped. According to The Detroit News, Boot ’em Bob refused to say how much Chrysler Financial was seeking, but said he hoped “it would provide the kind of support for us in a similar fashion that GMAC was able to provide to GM.” So, what, another six billion? By Friday? Before the automakers try and make the case that they can pay the money back? The raid on the public purse continues.

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  • Ralph SS Ralph SS on Jan 12, 2009

    Wow, menno, happy little article THAT was. But yes, and as George Carlin once said: ...and you and me ain't in the club". It still kinda baffles me that good ol' "W" can say "I'm a 'Free Market' guy" and then play along with this and the irony isn't pointed out to everyone everywhere. Whether your a Detroit cheerleader or hater or anywhere in between becomes moot when the rules are changed to protect the guilty.

  • Menno Menno on Jan 12, 2009

    Well, Ralph, our Federal Deficit is in reality something along the lines of $27 TRILLION ($20 TRILLION "hidden" but still reality, apparently). Just after Ronny Ray-gun was inaugurated in 1981, the deficit was $1 TRILLION, and that had taken 204 years to "accomplish". As of a few months ago, the not-hidden deficit was under $4 TRILLION. Anyone with any math skills beyond 2nd grade arithmatic should be able to figure out quickly enough, that running up debts this big, this fast, is simply not sustainable. History says that foolishness catches up with nations. It certainly catches up to people and organizations, as well. From a Christian perspective, this entire picture could be seen in another light. Note: Non-Christians will not only not understand the attached article, but will be infuriated. So, don't even bother looking. May as well keep your blood pressure in control. Suffice to say that the Roman Empire, the Weimar Republic of Germany (1920-1923 hyperinflation) and Argentina (before dollar par / after dollar par) are all stories which historians note that we Americans might be interested in learning about as we move on.

  • Windswords Windswords on Jan 12, 2009

    Does anybody remember how much Chrysler originally asked for? Anybody? Bueller? 7 Billion. Does anybody remember how much Chrysler originally got? Anybody? Bueller? 4 Billion. They are asking for the rest of their original request (and so is GM now). So the article title really is "Chrysler Seeks the rest of it's requested loan from Treasury". By the way, in this past absolutely terrible year Chrysler sold 1,450,000 vehicles in the US. More than Honda. But worldwide they sold 2,007,081. On a global basis in 2008, Chrysler’s sales were down 25% I thought Mr. Lauer said nobody likes their cars? Before you say it was all fleet sales, last year they cut their fleets sales by 200,000 units.

  • Ingvar Ingvar on Jan 12, 2009

    Isn't it obvious? Cerberus made a bad bet, and now gets the government to cover their loss, before they jump ship and sink it in the ocean.