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Chrysler Bankruptcy ?

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cowboy43

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Will the bankruptcy affect Dodge products, nowhere is Dodge mentioned in the bankruprcy ,I thought Dodge was made by Chrysler but I have been told no. I talked to a mechanic that can no longer get certain parts from Dodge trucks made in the 90's from the dealer and the parts are not made afermarket.
 

lavacarancher

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Dodge is a branded Chrysler product just like Mercury is to Ford and Pontiac is to GM.

As far as getting parts if the gov't ever bought any of the vehicles you are interested in then the supplier must continue to supply parts for the product for ten years after the model year purchased is past. At least that's how it used to be. But there is no mention of the cost of those spare parts. A part purchased for $100 one year after the model year may cost $1000 in ten years.

Difficult and confusing times! Even filing for bankruptcy (Chapter 11) doesn't mean the company is going out of business. It just gives them some protection from creditors while they try to piece everything back together. (I think)

Herefordshire could probably explain that better than I can.
 

DiamondSCattleCo

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Here's an NYT article that kind of explains things:

http://www.msnbc.msn.com/id/30366383/

Chapter 11 does not mean that Chrysler or Dodge will cease to exist, nor that parts will become unavailable. Bankruptcies aren't all that black and white, as the Chapter 11 conditions can be "negotiated" as to who gets what and when. Failing the Chapter 11 proceedings then means the company will cease to exist, creditors will seize assets, etc etc.

You guys can thank the UAW for the current mess. They refused to back down on pensions and wages, forcing these proceedings. Personally, I think the UAW (and unions in general) need to be outlawed and right quick. They're driving the economy into a shambles. I'd actually like to see Dodge completely fold, sell the name and designs as an asset, then restart back up again as something like Dodge Motor Company. Only this time make sure the UAW stays completely out of the picture. If employees threaten to unionize, then simply fold up shop again until people get some brains...

Rod
 

lavacarancher

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DiamondSCattleCo":1ronul8u said:
Here's an NYT article that kind of explains things:

http://www.msnbc.msn.com/id/30366383/

Chapter 11 does not mean that Chrysler or Dodge will cease to exist, nor that parts will become unavailable. Bankruptcies aren't all that black and white, as the Chapter 11 conditions can be "negotiated" as to who gets what and when. Failing the Chapter 11 proceedings then means the company will cease to exist, creditors will seize assets, etc etc.

You guys can thank the UAW for the current mess. They refused to back down on pensions and wages, forcing these proceedings. Personally, I think the UAW (and unions in general) need to be outlawed and right quick. They're driving the economy into a shambles. I'd actually like to see Dodge completely fold, sell the name and designs as an asset, then restart back up again as something like Dodge Motor Company. Only this time make sure the UAW stays completely out of the picture. If employees threaten to unionize, then simply fold up shop again until people get some brains...

Rod

Well said, Rod. And I couldn't agree with you more on the union thing.
 

Alberta farmer

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Not sure if the union is totally to blame? I think management can easily take their fair share too?
I would like to see both Chrysler and GM go bankrupt and sell off the assets to someone who can run a business without crying to the government for money and make a decent product.
I would think the Japanese companies could buy up the truck divisions and start up again with no union and some quality control. We might get a truck that wasn't a piece of junk.
 

DiamondSCattleCo

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Alberta farmer":r580kcge said:
Not sure if the union is totally to blame? I think management can easily take their fair share too?

I was only blaming the union for the "current mess", as in Chrysler likely having to claim bankruptcy. If the CAW/UAW would have went for a $20/hr wage/pension/benefits reduction, Chrysler would have secured funding from the government, the Fiat merger would have steamed on full speed and things would be fine.

Now Chryslers creditors are being offered 20 cents on the dollar, all thanks to the greed of the CAW/UAW.

Management can definitely take their share of the blame for the events leading up to the current situation :) The last time the CAW/UAW went on strike, they should have had some stones and did what Federated Co-op did up here: Hired a whack of "temporary" workers and let the strike fund run out of money. 14 years later, the strike ended with dissolution of the local chapter of the union, and everyone went back to work. Non-unionized of course.

Rod
 

grannysoo

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There's plenty of blame to be shared by all with Chrysler. Blame management, blame the unions, blame the engineers, blame the workers.

Management made bad decisions.
Unions made too many demands.
Engineers designed cars/trucks that were p.o.s. designs complete with too many flaws.
Employees manufactured cars/trucks that were p.o.s.

Spread the blame......
 

Cowdirt

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Here's my take on the situation. For years the union made unreasonable demands. The auto management caved-in. They simply tacked the cost on to the price of the vehicle. As long as the economy was rocking along; the consumer, most of whom were operating on much lower wages than the UAW, paid the price increase, though reluctantly. When the economy tanked the buyers were no longer there. This is when the "chickens came home to roost" for both union and management. What's really unfair though is that those of us with less income are now bailing out those who started the whole mess.
 

hurleyjd

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If Chrysler had not sold to Mercedes then the company would still be solvent. When the sell took place Chylser was awash with money. Mercedes siphoned it off.
 

Bonsman

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As an owner of a dodge or chrysler vehicle, I would not be too concerned about a bankruptcy. They will file a chapter 11 reorganization rather that a chapter 7 liqidation. However, if you are a dealer, stockholder, or have a pension with Chrysler then I would have a lot of concern. Also, all the entities that are owed money by Chrylser should be concerned.

A chapter 11 will allow them to reject a lot of their executory contracts and get better deals. The union contracts are very complicated in bankruptcy. But the unions will get a haircut.

You can use the airlines as an example. Typically, in a chapter 11 they will exchange stock for debt. So all the stockholders will get wiped out and the creditors (bondholders, gov't, and unions) will become the new stockholders in exchage for the money they are owed. That will reduce debt. The wildcard is always the pre-petition lenders, Chrylser's ability to use cash collateral, and obtain post-petition financing. Usually, the secured creditors will provide the post-petition financing because they have too much invested in the company. Also, early in the bankruptcy, motions will be filed to allow Chrysler to honor warranties on the vehicles they have sold.

Chrysler could sell off some brands--like jeep--to raise money. It will likely be a pre-packaged plan wherein most of the major issues will be resolved before the bankruptcy is filed. The bottom line is that the ordinary consumer will not have much to worry about. Most of the brands will survive; they will just have new ownership.
 

DiamondSCattleCo

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Heres a little more on it:

http://news.yahoo.com/s/nm/20090428/bs_ ... bGVybGVuZA

Quite frankly, no-one is really sure whats going to happen until it really happens. However, as Bonsman said, several Dodge entities _will_ survive no matter what, with Jeep and RAM Truck leading the way. There are simply too many buyers for either of these entities. In other words, the parts supply will be secure for these brands for at least a decade.

Rod
 

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