Chrysler Shutting Down During Bankruptcy?
Fiat’s explanation of its deal with Chrysler states, “Pending (the transactions) approval, the 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.” But according to The Detroit Bureau, this isn’t the case. “During the bankruptcy proceedings, which are expected to last from 30 to 60 days, most of its manufacturing facilities will be closed. It is only when the New Chrysler emerges from bankruptcy that production will gradually resume. Workers will be eligible for supplemental unemployment benefits, worth about 80% of pay. Some additional plant closings are anticipated.” Which means either The Detroit Bureau has its facts wrong, or Fiat does. 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?
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I should have said superpower. Everything is pretty crappy right now.
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!
Unemployment at 80% pay. Nice. Most laid off workers are lucky to get 20 or 25% at best. And guess who pays for that?
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?