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At a mid-day press conference President Barak Obama made the official announcement that Chrysler will in fact file for Chapter 11 bankruptcy protection. Included in the announcement was the news that Chrysler has also reached an agreement with Fiat.

"I can report that the necessary steps have been taken to give one of America's most storied automakers a new lease on life," Obama said.

Praising Chrysler's storied history and saying that the company helped make the 20th Century an American Century, he also chastised the numerous poor decisions made by all parties involved. Chrysler has "for too long, moved too slowly, building less popular cars, that are less reliable and less fuel efficient," Obama said.

The President praised Chrysler management, the UAW and the company's major lender JP Morgan for their "unprecedented sacrifices," and blasted the small group of holdout hedge funds that have refused to budge and accept the Federal government's offer. That offer would see the U.S. government pay out lenders $2 billion in cash for $6.8 billion in debt.

The official Chapter 11 paperwork is expected to be filed as early as today and in the restructuring process the Federal government will provide additional loans to Chrysler. Those loans are not open-ended, however, and will have to be repaid in full before Fiat can take a majority stake in the U.S. automaker.

In the mean time Chrysler operations are expected to continue as normal with one major change. The finance arm of General Motors, GMAC, will finance car loads at the dealership level.

More: Chrysler Officially Bankrupt: Merger With Fiat A Done Deal on AutoGuide.com
 

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Thats kinda what I thought. Plus wondering how many engines Cummins are going to want to sell Chrysler after they lose 47million due to this deal.

Chrysler has "for too long, moved too slowly, building less popular cars, that are less reliable and less fuel efficient," Obama said.
?? Huh ??
 

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also wonder how much we are getting back from bailing them out. that was nice of them though, lend them money to get out of the hole, and they go bankrupt instead.
 

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Well when guns in Cummins coveralls come knocking on your door, telling you they are here to repo your engine, you know yours wasn't paid for haha
 

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And why is Obama running this process?
 

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I wonder how many of us own engines that haven't been paid for??
Heck with that much owned i wonder if mine is paid for lol
 

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Chrysler's top 50 creditors | Freep.com | Detroit Free Press

Here is a link to who Chryslers owes and the amounts, Cummins is #5. Chrysler ONLY owes them $43,912,930.30

I wonder how many of us own engines that haven't been paid for??:shock:
Thats kinda what I thought. Plus wondering how many engines Cummins are going to want to sell Chrysler after they lose 47million due to this deal.



?? Huh ??
WELL hello there gentlemen:hi:

ok back to topic
 

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I’d be willing to bet that now Obama has his hands all over this that this is going to be much different then anyone thinks. The US agreed to give 8 billion of our tax dollars to Fiat to take Chrysler off his hands. I’m sure there are strings attached just like everything else our new socialist government is doing.
He is a global warming believer and supporter. Cap and trade translates in taxes for carbon. So we might not even see them build trucks anymore.

If you voted for “Change” I hope you’re proud of yourself.
:doh:
 

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I’d be willing to bet that now Obama has his hands all over this that this is going to be much different then anyone thinks. The US agreed to give 8 billion of our tax dollars to Fiat to take Chrysler off his hands. I’m sure there are strings attached just like everything else our new socialist government is doing.
He is a global warming believer and supporter. Cap and trade translates in taxes for carbon. So we might not even see them build trucks anymore.

If you voted for “Change” I hope you’re proud of yourself.
:doh:
The 8 billion we are going to give Fiat is much better than the government trying to operate a car company and throw 25 billion at the problem. We had roughly 3 choices with Chrysler. 1. Let it go out of business. 2. Let the government run it. 3. Let somebody purchase it. Fiat will not get rid of there most profitable vehicle because of cap and trade. That would be the equivalent of Paccar getting rid of the Peterbuilt brand.
Shockwave you sound like a guy that is about smaller government. What would you want Obama to do as your President with Chrysler?
 

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I was really tired last night when I wrote that. I am more upset with what Obama is doing to the country more than anything! Please understand that I believe Obama has screwed Chrysler up more than he has helped.
If they would have let them file for Chapter 11 months ago tax payers would have saved money. And Chrysler might be able to salvage what is left.
I think our trucks might be the last ever made.

:banghead:
 

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I was really tired last night when I wrote that. I am more upset with what Obama is doing to the country more than anything! Please understand that I believe Obama has screwed Chrysler up more than he has helped.
If they would have let them file for Chapter 11 months ago tax payers would have saved money. And Chrysler might be able to salvage what is left.
I think our trucks might be the last ever made.

:banghead:
If Chrysler was allowed to file for bankruptcy when the credit markets were still shutdown, only thing we would be talking about is liquidating Chrysler's assets. You have to remember 8 billion dollars is a drop in the bucket to the government look here at the waste during the war in Iraq.. Don't be mad at Obama he just inherited a mess he didn't create the mess. What about management like Tom LaSorda, the management of Daimler Benz that actually drove the company into the ground. What did Obama have to do with the bland vehicles that Chrysler produced. You have to remember this is a long term turn around not over a few months. Shockwave I'm not trying to make this a political discussion but what don't u like about Obama and his leadership( u can pm so we keep this on topic). I believe Dodge will come out with better products because of this merger.
 

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I believe Dodge will come out with better products because of this merger.
Agreed. Frankly, Chrysler has no choice. If the products don't get better, they'll die off.

The (extreme) alternative is that they keep only the crappy products. I hope nobody here is suggesting that as the best course of action.
 

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If Chrysler was allowed to file for bankruptcy when the credit markets were still shutdown, only thing we would be talking about is liquidating Chrysler's assets. You have to remember 8 billion dollars is a drop in the bucket to the government look here at the waste during the war in Iraq.. Don't be mad at Obama he just inherited a mess he didn't create the mess. What about management like Tom LaSorda, the management of Daimler Benz that actually drove the company into the ground. What did Obama have to do with the bland vehicles that Chrysler produced. You have to remember this is a long term turn around not over a few months. Shockwave I'm not trying to make this a political discussion but what don't u like about Obama and his leadership( u can pm so we keep this on topic). I believe Dodge will come out with better products because of this merger.



Oh man you need to do your research. I can understand the need for optimism but there is a real need to seeing it for what it is. The Obama Gov backed by the liberal power is behind the failures of GM and Chrysler. They could still make the cars they have without retooling but the new “global warming agenda” has killed the US car market. It is too expensive for them to meet the new ridiculous demands.
We all know that the Unions are behind the failures just like our politicians are. The UAW gave the Obama DNC 1 billion for campaign contributions. Now as the new administration is regulating EVERYTHING they have removed oversight on the union dealings!? What does that tell you?
I find it funny that you even brought up War spending. What is that 500 billion over how many years…. Obama has made the Bush white house look like school kids, they have spent and pledged over 13 TRILLION!!!!!! And look what it has done man, -nothing. Everything is still failing and no one can show me numbers that anything is turning around.
Obama leadership, can you say the biggest power grab in American history? Cap and trade, national police force, impending high taxes, gun control on the horizon, unending spending. Remember the bailout? What ever happened to transparency in government when he forced 700 billion to be signed without 1 person reading it? Then he took off with his wife for days then returned to sign it.
Nation healthcare is very much connected to the car company’s failure. As when the union dies and 3 million have no health care will be his event for implementation.
I recommend reading the 1000 year leap and see the connections to what is happening.
GM is next. If we had an economy thread I can lay it out how the Gov knows all it is doing is still going to fail. They are just placing themselves in positions to pick up the pieces.
 

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Oh man you need to do your research. I can understand the need for optimism but there is a real need to seeing it for what it is. The Obama Gov backed by the liberal power is behind the failures of GM and Chrysler. They could still make the cars they have without retooling but the new “global warming agenda” has killed the US car market. It is too expensive for them to meet the new ridiculous demands.
We all know that the Unions are behind the failures just like our politicians are. The UAW gave the Obama DNC 1 billion for campaign contributions. Now as the new administration is regulating EVERYTHING they have removed oversight on the union dealings!? What does that tell you?
I find it funny that you even brought up War spending. What is that 500 billion over how many years…. Obama has made the Bush white house look like school kids, they have spent and pledged over 13 TRILLION!!!!!! And look what it has done man, -nothing. Everything is still failing and no one can show me numbers that anything is turning around.
Obama leadership, can you say the biggest power grab in American history? Cap and trade, national police force, impending high taxes, gun control on the horizon, unending spending. Remember the bailout? What ever happened to transparency in government when he forced 700 billion to be signed without 1 person reading it? Then he took off with his wife for days then returned to sign it.
Nation healthcare is very much connected to the car company’s failure. As when the union dies and 3 million have no health care will be his event for implementation.
I recommend reading the 1000 year leap and see the connections to what is happening.
GM is next. If we had an economy thread I can lay it out how the Gov knows all it is doing is still going to fail. They are just placing themselves in positions to pick up the pieces.
The liberal party didn't cause the death of the US auto industry. Bad Management was the cause. With a bad product mix along with sub par vehicles. I wasn't commenting on the spending during the war, I was commenting about the waste during the war. Obama's total campaign contributions totaled 745 million and McCain raised 368 million so how did the UAW give 1 billion dollars. The tax increase will only affect 2% of the US population which earn 24% of income of all income here is a link to the real tax increase. Now I have cited responsible and legitimate sources to substantiate my argument where is your research?
 
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