Dodge is down, Chev next?

[DiamondSCattleCo]

http://content.usatoday.net/dist/custom ... 1351.story

With the UAW being the majority shareholder, one of two things is going to happen:

1) The UAW will still be greedy and drive the newly restructured Chrysler out of business for good (which I suspect will happen)

2) The UAW will finally realize that its members have to compete on a world stage and that 70 or 80 bucks an hour is not a realistic wage

It'll be interesting to see what happens to Chevrolet. Their losses were even higher than Chrysler's, and they had no real plan in place to move forward.

Rod

 

[grannysoo]

The fat lady is warming up her voice in the dressing room now.........

 

[lavacarancher]

I'm not sure if the rank and file of the UAW are smart enough to figure out that no GM or Chrysler means no job and no pay. But that's OK, UAW will keep paying them for about thirty seconds.

 

[KenB]

I'm not sure if the rank and file of the UAW are smart enough to figure out that no GM or Chrysler means no job and no pay. But that's OK, UAW will keep paying them for about thirty seconds.

I believe the UAW came to terms, it was the bond holders that wouldn't come to terms.

 

[DiamondSCattleCo]

Actually the UAW and Chrysler did manage an "agreement", however it wasn't acceptable to the government and Chrysler's debt holders, so it forced the Chapter 11. Now Chrysler's bond holders are giving them grief over the Chapter 11 proceedings and may end up forcing Chapter 7...

I actually don't blame the bondholders (and other debt holders) for their reluctance. The UAW got a substantial amount of cash for agreeing to the Chapter 11 terms, whereas Chrysler's other debt holders get a few pennies on the dollar. It doesn't really seem fair.

Rod

 

[Tatertot]

I'm not sure if the rank and file of the UAW are smart enough to figure out that no GM or Chrysler means no job and no pay. But that's OK, UAW will keep paying them for about thirty seconds.

I believe the UAW came to terms, it was the bond holders that wouldn't come to terms.

What did the UAW give up?

 

[Jogeephus]

On the news tonight it said that the employees were getting 80% of their regular paychecks while the plants were idling. From this, it doesn't look like they gave up much. Pay me 80% to sit at the house and I'll be mopping the floors and taking in Opera with a SE grin on my face.

 

[Cowdirt]

Actually the UAW and Chrysler did manage an "agreement", however it wasn't acceptable to the government and Chrysler's debt holders, so it forced the Chapter 11. Now Chrysler's bond holders are giving them grief over the Chapter 11 proceedings and may end up forcing Chapter 7...

I actually don't blame the bondholders (and other debt holders) for their reluctance. The UAW got a substantial amount of cash for agreeing to the Chapter 11 terms, whereas Chrysler's other debt holders get a few pennies on the dollar. It doesn't really seem fair.

Rod

Folks who own Chrysler bonds were offered 29cents on the dollar. Some agreed to accept that; others didn't. I certainly wouldn't jump on that offer too quickly.

 

[jcummins]

On the news tonight it said that the employees were getting 80% of their regular paychecks while the plants were idling. From this, it doesn't look like they gave up much. Pay me 80% to sit at the house and I'll be mopping the floors and taking in Opera with a SE grin on my face.

EXACTLY. Has anyone heard what happens to the pensions....and WHO covers their backside on that cost?

Bond holders 29%, UAW 80%.....remember those bond holders are investors...like other peoples 401Ks. It's obvious some in government see that as balanced.

 

[Bonsman]

I am awful busy, as one could expect in this economy. But I did take a peek at Chrysler last night. The first day orders were issued allowing for a number of things, closing of dealers, rejection of other contracts, pre and postpetition payments for critical vendors.

It appears to be a pre-packaged plan financed post-petition by the government. The end result is that Fiat will be the majority owner followed by the Unions and the goold old USA. Yes we will own about 8% of the reorganized company while Canada will also own 2% of the new compnay. The bondholders ownership share of the company will debend on the value of the company. I suspect they will get much less than they were previously offered.

This bankruptcy will move quickly. We lost two dealers in a 15 mile radius. The governments involvement in this bankruptcy is unprecedented.

GM will likely file on or about June 1. My advice, buy a ford.

 

[TexasBred]

I'm not sure if the rank and file of the UAW are smart enough to figure out that no GM or Chrysler means no job and no pay. But that's OK, UAW will keep paying them for about thirty seconds.

I believe the UAW came to terms, it was the bond holders that wouldn't come to terms.

I don't blame them one bit...They've got a secured interest. That means they come first even in bankruptcy court. Barracko is trying to strong arm them and one has already caved. All the dealers in Central Texas are bein shut down. You''ll now have to go to DFW or Austin to buy Chrysler. Doesn't seem to matter that all the dealers were "profitable" and had nothing to do with Chrysler except a contract to sell their cars. I really don't think what the "O" is doing is constitutional regardless of how much money the gov't pumped in.

 

[TexasBred]

I am awful busy, as one could expect in this economy. But I did take a peek at Chrysler last night. The first day orders were issued allowing for a number of things, closing of dealers, rejection of other contracts, pre and postpetition payments for critical vendors.

It appears to be a pre-packaged plan financed post-petition by the government. The end result is that Fiat will be the majority owner followed by the Unions and the goold old USA. Yes we will own about 8% of the reorganized company while Canada will also own 2% of the new compnay. The bondholders ownership share of the company will debend on the value of the company. I suspect they will get much less than they were previously offered.

This bankruptcy will move quickly. We lost two dealers in a 15 mile radius. The governments involvement in this bankruptcy is unprecedented.

GM will likely file on or about June 1. My advice, buy a ford.

Or a Toyota. Don't want no car built by the US Gov't.

 

[Wormy Coyote]

I suppose vehicles currently under warranty will have to be taken to DFW or Austin for repairs as well, and what does this mean in terms of aftermarket parts ? Theres a possibility that small parts stores could do really well in this environment or am I wrong ?

 

[Bonsman]

I do not think Toyota makes a one-ton chasis. I may be wrong, however.

In three days our town of 12,500 people lost its Chrysler/Dodge dealer and its Chevrolet/GMC dealer. We have a Ford dealer left, for now. Unbelievable.

 

[Tatertot]

I do not think Toyota makes a one-ton chasis. I may be wrong, however.

In three days our town of 12,500 people lost its Chrysler/Dodge dealer and its Chevrolet/GMC dealer. We have a Ford dealer left, for now. Unbelievable.

How far do you have to go to get a GM or Chrysler serviced now?

 

[Bonsman]

I do not think Toyota makes a one-ton chasis. I may be wrong, however.

In three days our town of 12,500 people lost its Chrysler/Dodge dealer and its Chevrolet/GMC dealer. We have a Ford dealer left, for now. Unbelievable.

How far do you have to go to get a GM or Chrysler serviced now?

About 20 miles east or 30 miles west. Just far enough to where it is a real pain waiting or getting a ride back home. Plus, unless you are from their town, you are not on the top of the list. We have all Fords except one Duramax six speed one ton diesel that breaks down quite often.

 

[DiamondSCattleCo]

From Automotive News:

Chrysler to replace Nardelli with former Duracell chief

Kidder to get chairman title; Fiat's Marchionne has said he'll be CEO

Dave Guilford
and Chrissie Thompson
Automotive News | May 20, 2009 - 3:54 pm EST

DETROIT -- C. Robert Kidder, former chairman of Borden Chemical Inc. and
of Duracell International Inc., will become chairman of Chrysler Group
LLC after it enters an alliance with Fiat S.p.A.

Kidder, 64, will succeed Robert Nardelli when Chrysler Group completes
its acquisition of the operating assets of its bankrupt predecessor and
completes the Fiat partnership.

Kidder will not take the CEO post. A board of directors to be selected
after the alliance is complete will choose a CEO with Fiat's
concurrence, Chrysler said. Fiat CEO Sergio Marchionne has said he will
become Chrysler's chief executive.

Kidder is chairman and CEO of 3Stone Advisors LLC, an investment firm
that focuses on clean-tech companies. Kidder serves on the boards of
Morgan Stanley, where he is the lead director, as well as
Schering-Plough Corp. and Microvi Biotech Inc.

A former Ford Motor Co. consultant, Kidder holds a master's degree in
industrial economics from Iowa State University and a bachelor's degree
in industrial engineering from the University of Michigan.

"I am confident that Chrysler will emerge from Chapter 11 a lean and
powerful competitor, combining its own rich history of innovation with
Fiat's technology and expertise to invigorate the American car market
and to challenge other car companies around the globe," Kidder said in a
statement.

Nardelli was installed as Chrysler's chairman and CEO when Cerberus
Capital Management LP bought the automaker in August 2007. He announced
his plan to leave the company on April 30, the day it declared
bankruptcy. He will return to Cerberus as an adviser.

Kidder and his family live in Columbus, Ohio.

 

[DiamondSCattleCo]

So what does all the above mean? Probably not much. We'll go back to the old status quo, with the UAW dictating terms to the new Chrysler Group LLC which will end up living on government handouts for awhile, then fold up and die, leaving someone to pick up the profitable pieces like Jeep, Ram trucks, and the minivans.

Rod

 

[Txwalt]

http://www.sun-sentinel.com/features/ti ... 9513.story

Automobile prices will plummet. Used and new for a while.

Walt