Chrysler on it's death bed

[CHARGERSHED]

Well folks, it's just about over now... The Obama Administration has rejected Chrysler's restructure plan and has given the automaker 30 days to make a merger with Fiat happen or, it will be left for dead with no fed loans...On the other hand, Obama had GM CEO Rick Wagoner sacked over the weekend and has given GM 60 days to submit a new plan( think bankruptcy, where Obama's Admins can gain control over another iconic American Co. (the socialization of America continues) and something Mr. Wagoner was strongly opposed to...)
In a speech given today, Obama sighted awards GM has received over the last few years and how Chrysler hasn't had any awards and how their products aren't very good. Insiders believe the fact that Cerberus owns Chrysler and refuses to put it's own money behind the comapny, gives Obama a way to inflict some damage on the secretive private equity firm.

read more about it here: http://news.yahoo.com/s/bloomberg/20...g/arw6keyfqteg


The article states that since Obama did not have Nardelli removed as CEO, it is a strong indicator that Chrysler won't be around much longer.

My opinion; Obama wants Chrysler to go away so it can concentrate on restructuring GM and force whats left of the US auto industry into producing "green" vehicles to appease more of his left wing eviromentalists buddies... The folks running Ford know this, and that's why they refused to partake of any Government loans. While Obama claims he doesn't want to have Government run GM, he was the one who forced GM's CEO into retirement, one who just happend to oppose his administration singular focus, geting GM into bankruptcy court. Since Chrysler has stated that they would shut down rather than restrucure under some type of govn't run bankruptcy, Obama is willing to trade those jobs for the bigger GM, and then shift blame of Chrysler's failure squarely on Cerberus' shoulders for political gain. He has already set up a special administrator for stimulus funds to the upper midwest region, the only such region to have one.He has agreed to subsidize American manufacturers new car vehicle warranties in an effort to stimulate sales( his take), but really this is to assure the few Chrysler customers left that there will be a warranty on their purchase, even after Chrysler is no more.

Pretty much Black Monday as far as MOPAR fans are concerned. I feel for the 50,000 plus Chrysler employees( many of whom probably voted for Obama) who are being abandoned by the present administration while hundreds of millions of dollars are going to wall street executives in the form of tax-payer subsidised bonuses. The small business that support Chrysler will get pinched in this deal, along with dealers and all of those employees...a dark day indeed...

[DMAG]

Chrysler reaches deal with Fiat...that was quick.

Marketwatch

[Darthvader]

Deal with Fiat Is done

[DMAG]

Yup...deal is pretty much done:

http://www.msnbc.msn.com/id/29958784/

[MGM]

Well folks, it's just about over now... The Obama Administration has rejected Fiat's restructure plan and has given the automaker 30 days to make a merger with Fiat happen or, it will be left for dead with no fed loans...On the other hand, Obama had GM CEO Rick Wagoner sacked over the weekend and has given GM 60 days to submit a new plan( think bankruptcy, where Obama's Admins can gain control over another iconic American Co. (the socialization of America continues) and something Mr. Wagoner was strongly opposed to...)
In a speech given today, Obama sighted awards GM has received over the last few years and how Fiat hasn't had any awards and how their products aren't very good. Insiders believe the fact that Cerberus owns Fiat and refuses to put it's own money behind the comapny, gives Obama a way to inflict some damage on the secretive private equity firm.

read more about it here: http://news.yahoo.com/s/bloomberg/20...g/arw6keyfqteg


The article states that since Obama did not have Nardelli removed as CEO, it is a strong indicator that Fiat won't be around much longer.

My opinion; Obama wants Fiat to go away so it can concentrate on restructuring GM and force whats left of the US auto industry into producing "green" vehicles to appease more of his left wing eviromentalists buddies... The folks running Ford know this, and that's why they refused to partake of any Government loans. While Obama claims he doesn't want to have Government run GM, he was the one who forced GM's CEO into retirement, one who just happend to oppose his administration singular focus, geting GM into bankruptcy court. Since Fiat has stated that they would shut down rather than restrucure under some type of govn't run bankruptcy, Obama is willing to trade those jobs for the bigger GM, and then shift blame of Fiat's failure squarely on Cerberus' shoulders for political gain. He has already set up a special administrator for stimulus funds to the upper midwest region, the only such region to have one.He has agreed to subsidize American manufacturers new car vehicle warranties in an effort to stimulate sales( his take), but really this is to assure the few Fiat customers left that there will be a warranty on their purchase, even after Fiat is no more.

Pretty much Black Monday as far as MOPAR fans are concerned. I feel for the 50,000 plus Fiat employees( many of whom probably voted for Obama) who are being abandoned by the present administration while hundreds of millions of dollars are going to wall street executives in the form of tax-payer subsidised bonuses. The small business that support Fiat will get pinched in this deal, along with dealers and all of those employees...a dark day indeed...

The guy with GM probably should be canned along with a lot of the others. Now Mopar was through after Mercedes got through with it. They had sucked it dry before these guys got it.

[MY - HEMI]

Lets hope that things can be worked out and that Chrysler will be around for many more years to come...

I just found a vehicle in my Charger that I absolutely love and wouldn't want to lose at any cost. The only way you could get my hands of the wheel was if they were attached to a cold dead body! Right now I can't even imagine owning another brand of car or not be able to get another one...

[slvr bullet]

Would you keep your job if this was your legacy?

"Wagoner, who had presided over the company's rapid decline in the past five years and had run the automaker since 2000, was forced out at the request of the autos panel headed by former investment banker Steve Rattner. A majority of GM's board will also be replaced.
"We are left to look back and say that Wagoner's appointment as both chairman and CEO in 2003 was little more than an act to ensure the dynasty of GM boardroom arrogance and failure continued," said Howard Wheeldon, senior strategist at brokerage BGC Partners.
Wheeldon said Wagoner's departure had been all but inevitable since the automaker sought government funds and said he was disappointed the authorities had not insisted on an external replacement.
Wagoner protege and GM President and Chief Operating Officer Fritz Henderson was named as the new CEO. Wagoner's departure came as the Obama administration came under fire for not blocking bonuses to executives at American International Group Inc."

As far as Chrysler goes given the 30 day ultimatum it didn't take them long to form the alliance with Fiat.
I love my Charger but if all of the big three had given a green alternative maybe they would not be in the trouble they are in to-day. We used to have a saying in the trade I was in "Those who do the paying are the ones who do the saying" At this point the government is doing the paying so it should be expected they should be doing the saying. As far as GM goes when the consumer was doing the paying they did not want to listen and they are now paying the price. IMO

[sublime1365]

You are right on Erik.. this administration has, and will continue to, screw things up for this country by trying to squash capitalism. Its funny, Mr. O. probably cant even change a tire and he somehow thinks he knows whats best for an auto company that has been in business for over 100 years and was once the biggest company in the world...

[slvr bullet]

Sometimes when you are really sick the medicine you have to take doesn't taste too good!!

[MidnightSXT]

Obama wants Chrysler to go away huh....I guess that 300C he apparently owned that was for sale on ebay a few months ago was a lemon?

[viper3ez]

uhhh, i already see a trend of mild attacks on Mr O on this thread.

i hope we can discuss this thread with repect to the future of our LXes without making it political with our expressions of likes or dislikes for certain individuals.


i'm happy chrysler is staying.

i hope they can bring soe small interesting cars from europe with the fiat mariage.

nevertheless, its the retardedness of these same people in the 70s and 80s that got us all those awful cars that gave domestics a bad name (K cars i think)

i dont want to see that happen again.

[Sevenernine]

You are right on Erik.. this administration has, and will continue to, screw things up for this country by trying to squash capitalism. Its funny, Mr. O. probably cant even change a tire and he somehow thinks he knows whats best for an auto company that has been in business for over 100 years and was once the biggest company in the world...

lolwut?


The fact remains that the "Big 3" have been making lower and lower quality vehicles for the last 15-20 years.


There exists a thing called CAFE. Corporate Average Fuel Economy. Basically it states that you, as a company, have to reach an average MPG of X or better, otherwise you get fined for every car that isn't, that you sell.


It's been loosely enforced in the past, but has started becoming a bigger deal.

So, here's what we have:

Japanese automakers who make reliable, fuel efficient cars at low prices. They're already way above Cafe, and don't give a **** about it.

European manufacturers, who make somewhat reliable, piss poor fuel economy luxury cars at high prices. They sell to a wealthier market, who will swallow the cost, so they also don't give a ****.

And American manufacturers, who make low economy cars, with mediocre reliability, at a middle of the road price. They are trying to compete price-wise with Japanese manufacturers, but are having to pass along this cost to consumers, thus making their lower efficiency, lower reliability vehicles more expensive than the market in which they are trying to compete.


Now, European car manufacturers (Benz, BMW, Audi...etc) could give a **** less because they'll just pass that cost along to their customers, who have the money to buy a $70k Mercedes.

So, that leaves the rest of us. The middle class of people who want a good reliable car, and not to spend too much at the pump. I love my R/T, but the fact of the matter is that not everyone gives a damn about horsepower. If I'm a middle aged, middle income family in need of a new car, odds are I'm going to buy a cheaper, more reliable, more efficient Toyota Camry, than a Chevy Malibu, Dodge Avenger, or Ford Fusion.

So, with the exception of the people who hold on to the "Buy only american!" credo that is outdated becuase we, as a nation, are no longer producing the highest quality goods, most people are going to opt to buy foreign.


The bed they lay in is the bed that they have made. Don't get me wrong, I want the 3 to survive and prosper as much as anyone, but to sit here and throw out "Socialist!" nonsense because Obama's administration is trying to salvage these car companies before they die is absurd.

You don't like the methods he's implementing? Fine. But realize the alternative is that they get no money, and have to suffer for the failures they created. It's ****ty, but after the whole Wall Street fiasco with bonuses and ****, the government is going to be a lot more cautious about where this money goes. Yeah it sucks that Wall Street got away with it, but unless you can build a Delorean with a Flux Capacitor and get it up to 88 MPH to generate the required Gigawatts to go back in time to convince the government not to give Wall Street billions of dollars, there's no reason to bring it up as if it's going to make a difference now.


Furthermore, some of you act as if Obama has a personal stake in the bailout money being given, as if he's going to take over GM as CEO and let Chrysler drown.


I'm going to stop, now... Because everything else I have to say wouldn't be productive. But please stop listening to everything Fox News tells you.

Good day.

Oh, and I know there's some redundency in this post. Sorry.

[SnowgodCCR]

You are right on Erik.. this administration has, and will continue to, screw things up for this country by trying to squash capitalism. Its funny, Mr. O. probably cant even change a tire and he somehow thinks he knows whats best for an auto company that has been in business for over 100 years and was once the biggest company in the world...

[RANT]Are you kidding? You're actually inferring that GM knows how to run their company, a concept which I find laughable and nostalgic. If they knew how to run their company, they wouldn't be in the total mess that they're in. If they understood how things work, they would have been trying to compete with Toyota, Honda, Hundai, BMW, Mercedes and all the other foreign manufacturers instead of using 1970's era rhetoric about how "them thar furrign ve-hikkles ain't nuthin but trash" and selling their vehicles by convincing people that the competition was non-existant and that a GM product was the only way to go. The ONLY people that I know that have bought a Chevy (corvettes and camaros excepted) or Pontiac come from a long line of GM owners who won't buy anything else (or people in areas where there are no foreign car dealers). The people who shop around before buying tend to steer towards the foreign makes because they DON'T suck. I had it out for Chrysler until I got my 300C. Now I'm hoping they survive. But even after owning my Saab (which I loved dearly) I was cursing GM on a weekly basis and hoping that they would just sell Saab and end their reign of tyranny over them. Saab being sold to the Swedish government is a godsend to me, because now as far as I'm concerned GM can pay the price for producing garbage.
We also have a 2004 Cadillac Deville that I would LOVE to get rid of (it was inherited), because as far as I can tell it's a badge-engineered Impala with some nice leather and plastic wood on the dashboard. When Caddy is selling chevy's, you know it's time to let them die. [/RANT]

[sublime1365]

"The fact remains that the "Big 3" have been making lower and lower quality vehicles for the last 15-20 years."

Not true.. GM has had many vehicles in the top 10 in quality for many years. In fact.. BUICK surpassed LEXUS last week as #1 in quality. Saturn has been near the top for MANY years too...

I've owned many a GM car in my life... never had issues with any of them... chevies, buicks, oldsmobiles, even a GMC. Peoples perceptions have been tainted.. unfairly.
I only switched to an LX because of the great experience I had with a company vehicle that was an Intrepid.

Not trying to start an arguement or be too political... just wish the government would stay out of Private Business..thats all.. just let them fail or succeed on thier own if thats thier destiny. Let the market place determine thier fate...not government. Ford was smart to not take the bail-out bait.. they knew there would be too many strings attached.

[DMAG]

Easy on the attacks gents.

As for the Chrysler Fiat deal....well, the announcement was a bit premature.

UPDATE: Chrysler has released a corrected statement that says it's only agreed with Fiat on a "framework of a global alliance," but that no deal with the Italian automaker to partner up has been made yet. So they've basically agreed on what a Chrysler-Fiat mashup would look like, but not on whether they're going to do it.