Chrysler Bankruptcy

piezoe · Apr 30, 2009

Quote from trendy:

In 2000, GM bought a 20% stake in Fiat for $2.4B. However, those crafty Italians put in the contract that they could force GM to buy the remainder. By the 3rd Q of 2002, GM had written down its stake in Fiat to $220M. In 2005, GM paid Fiat $2B to get out of the deal. Tells you what GM thought of Fiat.

I believe the final payment to Fiat to get out of their obligation to buy Fiat was more on the order of 1 billion rather than two (actually 900+ million i believe, plus some exchange of tangibles). Nevertheless a very clever deal by FIAT.

I'm watching Chrysler closely these days, as i think that there is a possibility that after slimming down and shedding itself of unfavorables, Chrysler could emerge the strongest of the "Big Three" in about 3 to five years. I see the alliance with Fiat as a potentially brilliant rescue -- one that could turn Chrysler around more rapidly than either Ford or GM can achieve. Fiat already has small car engineering and technology in place. Their cars are very good actually. Where they failed previously in North America was in not being able to establish a strong dealer network, and perhaps in being a little too early. But now due to changing demographics and energy costs the time could be right. I would give Chrysler a standing 8-count at this point, and wait and see.

Mercor · Apr 30, 2009

Quote from piezoe:

, Chrysler could emerge the strongest of the "Big Three" in about 3 to five years. I see the alliance with Fiat as a potentially brilliant rescue -- one that could turn Chrysler around more rapidly than either Ford or GM can achieve. Fiat already has small car engineering and technology in place. Their cars are very good actually. Where they failed previously in North America was in not being able to establish a strong dealer network, and perhaps in being a little too early. But now due to changing demographics and energy costs the time could be right. I would give Chrysler a standing 8-count at this point, and wait and see.

Americans on whole do not like to drive small cars.
Had the market for small cars been there Fiat would have dealers knocking on their door. This is not Europe.

lindq · Apr 30, 2009

Quote from Mercor:

Americans on whole do not like to drive small cars.
Had the market for small cars been there Fiat would have dealers knocking on their door. This is not Europe.

LOL! Fiat and Chrysler? I can just imagine the quality.

A shotgun wedding if there ever was one.

One of their vehicles will be lucky to make it around the block on a test drive without rusting.

KINGOFSHORTS · Apr 30, 2009

Why is the taxpayer funding 8 billion dollars to this company? What a misuse of money.

So do taxpayers get a free car or dividends what exactly is the point of throwing good money after bad?

Ivanovich · Apr 30, 2009

Quote from Mercor:

Americans on whole do not like to drive small cars.
Had the market for small cars been there Fiat would have dealers knocking on their door. This is not Europe.

Just curious how you can throw around a general blanket statement like "Americans on whole do not like to drive small cars."

That may have been true in the 80s and 90s, but not today.

nassau · Apr 30, 2009

looks like another government bailout.

Obama pushing buy American should be interesting to see what news hits from Japan, Korea and Mexico, etc.

GMAC to fund and receive more funds, all is missing now is a speak in front of thousands providing a chicken in every pot.

Welcome to the Socialist USA

w

TGregg · Apr 30, 2009

Quote from KINGOFSHORTS:

Why is the taxpayer funding 8 billion dollars to this company? What a misuse of money.

So do taxpayers get a free car or dividends what exactly is the point of throwing good money after bad?

Cuz that's what we voted for. Massive, sprawling government everywhere, all paid for by the suckers who work for a living.

[Proximo] · Apr 30, 2009

Extremely bullish. Life is great, everything is beautiful. :]

Bankruptcies are awesome ES 1000.

KINGOFSHORTS · Apr 30, 2009

Quote from TGregg:

Cuz that's what we voted for. Massive, sprawling government everywhere, all paid for by the suckers who work for a living.

But even a Third bush term we would have bailouts left and right.

nutmeg · Apr 30, 2009

Quote from Ivanovich:

Just curious how you can throw around a general blanket statement like "Americans on whole do not like to drive small cars."

That may have been true in the 80s and 90s, but not today.

Most Americans won't fit in a small car. Many people tow stuff, boats snowmobiles, etc. If gas is reasonable people will choose a larger vehicle as they have buying suv's and p/u trucks.