Thursday, April 30, 2009

Bankrupt!


Chrysler will announce they are filling for bankruptcy this morning.
This is due to broken down talks with it lenders.

(I don't really get why people would rather get a company bankrupt than getting at least some of their money...)

This doesn't mean the end for Chrysler, they will use the bankruptcy to reorganize and actually move forward with their deal with Fiat.
So I guess it's not so bad, unless Chrysler owes you money...

27 comments:

Anonymous said...

About time.

Anonymous said...

good riddens... I just hope Obama doesn't decide to put tax payers on the hook for pension plans from these failing auto companys. I will be so pissed.

Anonymous said...

An so the Union Albatros is lifted from around Chrysler's neck. NOW they are on an even playing ground with foreign-run competitors.

Anonymous said...

Because the creditors will get MUCH more than was offered by the hopenchange goof in bankrupcy court.

Anonymous said...

"Anonymous said...
good riddens... I just hope Obama doesn't decide to put tax payers on the hook for pension plans from these failing auto companys. I will be so pissed."

You do realize that the auto workers had nothing to do with the failure of Chrysler, right? It was upper management and the beancounters that ruined the corporation.

Chrysler has been junk since the late 70's and only had a glimmer of hope when Daimler merged.

Anonymous said...

It just all needs to be all over and done with.

Anonymous said...

Management takes the heat but don't forget the UAW and the line workers are to blame too. It is the 'culture' that needs to change.

Anonymous said...

Not much people are talking about the american dream nowadays...

Anonymous said...

Vince - The reason some creditors didn't want to settle is because they bought something called a Credit Default Swap, essentially an insurance policy they pay for, and if there is a "credit event" aka a default/bankruptcy, they collect on that insurance policy. So by letting Chrysler default, they triggered an event that lets them collect more than they would if Chrysler hadn't gone bankrupt.

Anonymous said...

Fiat will never survive here and should call it quits now. I hope they don't waste to much of our tax dollars!

Anonymous said...

What about the companies who are owed money??
I might be diffcult for chrysler to find suppliers, ie parts, wheels, etc who would be interested.
It could be a case of once bitten, twice shy.

parboiled said...

i hope toyota goes bankrupt too.

Anonymous said...

Pity, I was hoping GM would go bankrupt first. I guess the market is finally cutting loose sub-par American auto manufacturers.

Anonymous said...

In reality that isnt going to happen. Unless 90% of other car manufacturers go bankrupt first.
Toyota is one of the few car manufacturers that have alot of money still stockplied away.

Anonymous said...

I just hope that the new fiat management will bring back the beautiful and luxurious Chrysler Cardoba with its fine Corinthian Leather seats!

Anonymous said...

"Anonymous said...
Pity, I was hoping GM would go bankrupt first. I guess the market is finally cutting loose sub-par American auto manufacturers."

Why GM???

At least they have some nice products out now. Everything that Chrysler has is shit, really. They do not have a single nice product aside from the 300 which is outdated and the Challenger.

Pasta Pie said...

it's riddence, and they are not gone anywhere. as a competitor, I wish they had, but this is better truely for our economy. Fiat supplies efficient small to mid, chrysler handles the big stuff ...simple. Hey many of you already drive a Fiat. The Fiat sedici ( google it now), is the suzuki sx4 here. Fiat wanted to come back here, just like renault did through venerable Nissan ( that has worked great).

Anonymous said...

"You do realize that the auto workers had nothing to do with the failure of Chrysler, right? It was upper management and the beancounters that ruined the corporation.

Chrysler has been junk since the late 70's and only had a glimmer of hope when Daimler merged."

It doesn't matter who's fault it is, I still dont think the TAXPAYER should pay for these pensions unless every other company that goes under gets the government to pay for their pensions too and if we do that, where is the money going to come from, oh right, people like me who pay $20000 in taxes every year already will be paying $30000.

Anonymous said...

"I just hope that the new fiat management will bring back the beautiful and luxurious Chrysler Cardoba with its fine Corinthian Leather seats!"

Too bad Ricardo Montaban is no longer with us

Anonymous said...

Actually its "riddAnce" with an A, not riddence or worse yet riddens. Sheesh people. What's next? Riddinz?

Anyway, as for Chrysler and GM, they both are now at the very bottom of my list of companies I will buy from. The bankruptcies don't bother me, but the involvement of the federal government does. The government does nothing right and efficiently, and they are not about to start now. Screw them - I'd sooner buy a Geely.

Anonymous said...

I thought long and hard and the only current Chrysler product worth anything to me is the Challenger, but then I compared it with the new Camaro and the Camaro has it beat in every way in my book. So no wonder they are going bankrupt I just wish it was chapter 7 and not 11. Then we would never have to see "NEW" still crappy cars from this Maker.

Anonymous said...

no one asks ... will the name be changed once more?

I googled it said...

its reedenz

iQuack said...

This is some kind of out-of-court bankruptcy that gives too much to the UAW which is a major reason why Chrysler (and GM) are failing.

The current loons in Washington are trying to save UAW jobs with taxpayer money and it stinks because the UAW caused much of the problem.

Do you want your taxpayer dollars to bail out the union drones with their ruinous work rules, job bank, featherbedding and crap? I don't!

Anonymous said...

"it stinks because the UAW caused much of the problem."


How?

iQuack said...

How? The union held a gun to the heads of GM, Ford, and Chrysler under strike threats. The car companies caved and raised prices which they could do because imported cars were few in the '50's, '60s and '70s.

But when Toyota, Honda, and others began importing better cars for lower prices, and later built factories in the U.S. to produce DOMESTIC Toyotas, Hondas, Nissans, etc., GM, Ford, and Chrysler couldn't compete because of high union wage rates and benefits.

The truth is that union workers were way overpaid to the extent that every domestic car had a $2000 price disadvantage compared with Japanese brands.

So, UAW greed caused much of the problem. Yes, domestic car managements were nitwits, too, but the UAW deserves at least half of the blame for GM and Chrysler's current mess.

Anonymous said...

IQUACK SAID: "The truth is that union workers were way overpaid to the extent that every domestic car had a $2000 price disadvantage compared with Japanese brands.

So, UAW greed caused much of the problem. Yes, domestic car managements were nitwits, too, but the UAW deserves at least half of the blame
I SAY: "More like $3500/vehicle" & 95% of the blame! While GM is paying $80 Billion/ year in (UAW PENSIONS ALONE!)-- JUST IN THE US -- JUST to the Retired who aren't even working-- Toyota spends about 8 billion -- WORLDWIDE! Now add the fact that a GM or Chrysler worker gets 85% of his paycheck WHILE THEY"RE LAYED OFF and you really have to wonder how in the world GM & Chrysler ever made it THIS long! So now we see all kinds of cuts and the Pres of GM working for nothing. Everybody is feeling the pain EXCEPT the UAW HIGHER_UPs that STILL rake in 6 & 7 figures!!! --You don't see Obama replacing ANY UAW Heads (like he did the head of GM). The Union hasn't been there for the WORKERS for years-- it's there SOLELY for the wealthy Union Bosses that have been pumping the UAW funds they control into the pockets and campaigns of Senators, Congressmen, (and now a President) for YEARS. Lets FINALLY wake up and smell the Politics!