Chrysler Files for Bankruptcy
President Barak Obama today announced that Chrysler has entered Chapter 11 bankruptcy, but will emerge stronger from the filing. He also announced that Fiat and Chrysler have entered a partnership, and that Daimler is out.
hard to imagine being bossed by a bigger bunch of a**h**es than those Germans, but Fiat is trying.
There is already rumours that suppliers are wary about supplying Canadian operations until things become clearer, and that some operations could close down for more temporary lay-offs. In case the media get this one wrong as well, Brampton is already scheduled to be down next week, look for more than one week before you believe anyone who tells you Chrysler is down because of the filing.
Here’s President Obama laying blame and taking credit.
And a little analysis. Note: hedge funds represent small investors, compared to the Presidents blame gaming.
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Update: David Akin’s On the Hill: Governments of Canada and Ontario will give $2.42B and have a 2% stake in Chrysler.
Ah yes … that should really work well for Chrysler sales.
” … Consumers Won’t Buy Car From Bankrupt Co.
http://www.foxnews.com/story/0,2933,179821,00.html
CHICAGO — Nearly three-quarters of Americans wouldn’t buy a car from a bankrupt company, according to a recent survey.
In a nationwide survey by the Cincinnati-based research firm Directions Research Inc. published Friday, only 26 percent of respondents said they would purchase or lease a new car from a manufacturer that had declared bankruptcy. …”
If we are going to throw away all these billions on car companies, let’s go totally diesel as cars are in Europe. At least we will get some pollution reduction for our money, plus the fact that most of the oil that is left is heavier oil so less refining to be done.
Good post Brian. I think in the ed this filing will be a good thing for the company. The most exciting part is it wipes Cerberus right off the books. Their goal when they aquired Chrysler was the same they had done with other companies. sell it off piece by piece, reap a quick profit, and to hell with everyone who loses their jobs.
People think Daimler was smart to dump Chrysler, and in effect they were. That is, after they raided Chrysler’s accounts to the tune of $7 billion at the time of the so-called merger, and agian 9 years ago to the tune of almost $10 billion. Our Brampton plant has an excellant track record of making money. The first generation Intrepids and Concordes saw great sales. The second generation saw even greater sales, that was, until Daimler decided to run production a further two years to avoid having to spend money on R&D for the new models.
When the 300C hit the market, we again had record sales of a high profit margin vehicle. The second generation 300, Charger, and the new 200C appear to be winners again, starting in about a year. And I had the opportunity to drive one of the hybrid-electric mini-vans. Very impressive.
Good point Nicola. We were supposed to tart making 300C diesels, but Daimler pulled out as they thought their belove name would be tarnished by putting their diesel engines in a Chrysler
Sounds like a recipe for success. Two failed auto companies run by bureaucrats. Maybe they can pick up Lada too.