Bailout Watch 525: Is Bob Lutz' Chrysler Pension Bankruptcy Proof?

Robert Farago
by Robert Farago

TheDetroitBureau.com (TDB) reports that GM’s lame duck Car Czar is a Chrysler creditor. The size and nature of Bob Lutz’ claim against the other zombie automaker is not yet known. But I reckon the ex-ChryCo exec’s pensions and bennies got sucked into the black hole. (Hey, I did warn him.) In fact, Lutz is going for a C11 triple: Exide, Chrysler and GM. While we await the official Chrysler court docs, the list of Auburn Hills’ other creditors is long and revealing. Number one: you, the taxypayer, dwarfing the second largest creditor by some $9.42 billion. So large, in fact, it’s not even on the list. Which leaves chassis maker Ohio Module Mfg. Co. as the largest non-governmental creditor. Ad agency BBDO Detroit Incorporated clocks in at number two most owed, at $58,055,133.44. As TDB observes, “Who would have thunk it! Well maybe it’s like American beer, the advertising and promotion cost more that the production of the stuff inside the can. Still, this is more money owed for advertising than steel, since U.S. Steel Corporation is owed only $16,182,772, as of April 30.” Looks like the spinmeisters got spun.

Robert Farago
Robert Farago

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  • KGrGunMan KGrGunMan on May 11, 2009

    I'm trying to figure out how these three great companys could go under, if only there was a common denominator between these 3 bankrupt companys...Exide, Chrysler and GM , i just can't connect the companys to a common problem/person...

  • PeteMoran PeteMoran on May 11, 2009

    @ KGrGunMan Common denominator! Ha! Well done KGrGunMan, beat me too it.

  • GS650G GS650G on May 11, 2009

    I don't think Maxi-Bob is worried about paying his bills.

  • Liveoilfree Liveoilfree on Aug 05, 2009

    Bob has probably done more than any other person to DESTROY the American car industry. The only healthy car company, Ford, didn't make use of Bob's questionable "services". It's almost as if a dark cloud of destruction follows Bob around, smothering and killing any company he's associated with. Bob's car, the "viper", is perhaps one of the worst examples of gas-guzzling stupidity. Bob presided over the bankruptcy of Exide, was associated with the bankruptcy of Chrysler, and was highly involved in the "decisionmaking" that bankrupted GM. Remember Bob claiming that buying Nissan would be like throwing money into the sea? Now, Nissan can buy GM with pocket change, thanks to Lutz.

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