Chrysler files for Bankruptcy Chapter 11

[LBARTLETT]

"GREEDY BANKERS" do not have the ability to package loans into marketable securities, that task was left to Freddie and Fannie, look to see who managed them over the last 15 years, look to see who truly tried to increase their regulation, who stalled that increased regulation and who in Congress got the political donations

 

[HBarlow]

I am pleased to read LBartlett's own personal experience as a banker cited above. It is widely known and understood by informed people that the problem that created our current economic disaster was set in motion by an arm of the federal government dictating to banks and mortgage lenders that they WOULD lend to unworthy borrowers.

As LBartlett wrote above, it began with the phony concern about redlining which has been smeared and distorted to make it a racial issue. It was not. Redlining was the way bankers/lenders identified unworthy borrowers and unworthy neighborhoods to lend in in order to limit their risk. The fact that the residents of those "low rent" neighborhoods were often but not always minorities had nothing to do with racism but everything to do with identifying and managing risk.

So, the government forced lenders to overlook minor issues like "how's your credit?", "do you have a job?", or " how much income do you have?" or "have you ever paid back a loan?" and loaned huge amounts of money to deadbeats. Duhh, they didn't repay the loans. Wonder how that could have happened.

 

[LBARTLETT]

Thanks for being well read and well informed Harvey, I need not say anything more of a political nature



I've driven nothing but Dodges since 1982 and bought the first Cummins sold in Ford Co. Kansas which was a 1989, I've owned 17 diesels, every year through 2004 and went back to my trusty 2001, I must say I don't know if I can ever bring myself to buy a Cummins made after March 09', the good news is as long as the Cummins last use when maintained I will probably be able to find good used "pre" March 09 trucks that will last me and long as the good Lord lets me live on this earth



although we can all at times disagree that's what America is about, we all have one thing in common here, we love our Dodge Diesels and are willing to help others, regardless of our differences with our Dodge Diesels



Long Live the TDR and the commonality it brings to us all!

 

[Gary - K7GLD]

For sure, unless something radically catastrophic and unplanned occurs, my '02 will undoubtedly outlive ME! I bought it specifically because it was the last of the 2nd generation trucks - I loved the body style, and trusted the Cummins of that generation more than the unknowns of the later generation - and have not been disappointed on either count. We all have specific personal choices for truck refinements outside what the makers provide, and I've finally reached all my goals in that regard - so should be well set regardless of where Chrysler and Co. ends up...

 

[bheiting]

the Copmmunity Reinvest Act forced banks to make a certain number of loans within their delineated territory that they would not have otherwise made, I ran a bank east of Dodge City but had farm loans west of Dodge City so I was forced by regulators to make home loans in Dodge City or get less than "satisfactory" on my CRA review, didn't matter what my underwriting standards were, if a certain number were not to minorities or single mothers I would be accused of discrimination; it didn't affect our credit quality as Freddie and Fannie were more than willing to book the loans, package them and sell them into the secondary market to investors

CRA started due to large banks "redlining" parts of Detroit, NY, Chicago and other large cities but came to impact even small ag banks across the country "GREEDY BANKERS"

Recently in our area (Minneapolis/St Paul) the local news interviewed
a small inner city banker. He required a substantial down payment
(probably 20%) and actually checked to see if the client had a job
that could support the mortgage. He had very few problem loans and
there was no whining about Community Reinvestment Act or
anything else. He just used the same common sense that he always
had. Now many banks, as you well know, made and resold
questionable mortgages because they could. The problem as it
relates to Chrysler, the tax payer, etc. is that these loan packages
were used as collateral for other loans and leveraged many, many times.
There was reportedly between 500 and 600 trillion dollars leveraged in the
international financial system with basically no regulation. A disaster
waiting to happen is a huge understatement.

 

[HBarlow]

Does Minneapolis/St. Paul even have any neighborhoods that bankers or mortgage lenders would redline?

 

[Grizzly]

Looks like GM may be going down the same path Chrysler did.

 

[HBarlow]

well you should remember that it was not Obama that was in office when thet got there money it was George w Bush so lets try to remember that HE did not give them money
he said you need to have a plane before you get any more money not the same old
sh__ that got you here. And now that there in bankruptcy lets see if they can poll it off or not. One thing you have got to do is make a quality car that people will buy and not a
pice of sh__ like chrysler has done with most of its cars. And if most of the people now
feel like you and will not buy a chrysler or gm then we all will be driving fords
NOW THATS A HAPPY TOUGHT.

You are simply mistaken or uninformed. The Bush administration with a democrat congress LOANED GM and Chrysler money with an obligation to repay it.

Nobama took over GM and Chrysler and began dictating how the privately-owned NON-GOVERNMENT auto companies would be run.

Can you grasp the concept..... SOCIALISM? Socialism means the government owns and controls the nation's means of production, etc.

 

[Gary - K7GLD]

You are simply mistaken or uninformed. The Bush administration with a democrat congress LOANED GM and Chrysler money with an obligation to repay it.



Nobama took over GM and Chrysler and began dictating how the privately-owned NON-GOVERNMENT auto companies would be run.



Can you grasp the concept..... SOCIALISM? Socialism means the government owns and controls the nation's means of production, etc.

Just wait until Obama and crew nationalize our infrastructure - energy, water, transportation (roads, etc. ), and then we turn that infrastructure over to the Asians and Saudi bankers who are financing Obama's bailouts and bonds, when we can't make the repayments...



Careful - what you say "can't happen here" - 20 years ago, we would have said what's happening NOW would never happen here - here's another sign of the times:



Couple: County Trying To Stop Home Bible Studies - San Diego News Story - KGTV San Diego

 

[surfbeetle]

... here's another sign of the times:



Couple: County Trying To Stop Home Bible Studies - San Diego News Story - KGTV San Diego

Yeah and they have done it before here in East San Diego County. There was a church that met in Eastern San Diego community of Guatay in a building that was originally a bar that served alcohol (what other type of bar is there?). SD County was trying to stop the church meeting because it wasn't zoned for that, but it was okay for people who had been drinking to be driving away from the establishment. Totally ridiculous!

 

[LBARTLETT]

well said Harvey, The Trends Research Institute® - Forecasting, Tracking and Analyzing Global Trends very scary predictions by 2012 and I would say he is right on and has a good record

 

[Grizzly]

Is Chrysler better off dead? This is interesting reading. Chrlysler/Fiat

 

[surfbeetle]

over on allpar.com, I read a something that says from a marketing standpoint, Chrysler may be better dumping the Chrysler name. I say, change it to the Plymouth name so we can have a new Plymouth Barracuda.

 

[Grizzly]

Actually I prefer the Dodge Challenger with a Hemi to the Plymouth Barracuda.



We could wind up with a Dodge Truck with a Fiat engine.

 

[MustangDiesel004]

The big O is gonna let Chrysler do the same thing as GM. Take money from retirement accounts and replace it with worthless stock. I don't always agree with the unions and that causes problems as I belong to the SteelWorkers but if it wasn't for the unions standing up to defend the workers we would all be in the same boat as the Chinese workers. But if we're gonna play the blame game lets blame the executives that take bonuses in the millions of dollars every year and really couldn't manage a lemonade stand on a street corner. How come none of them every offered to work for Lee Iacoca's salary when he took over Chrysler? He only worked for a dollar a year.

 

[LBARTLETT]

the problem as I see it even though they've taken retirement cash and turned it to worthless stock the taxpayer is still on the hook, in a normal bankruptcy without government involvement the retiree's would have gotten nothing just like the retirees of Enron and 99. 9% of the other companies

 

[Bob4x4]

A lil more info



Today marks a new beginning for Chrysler and the North American automotive industry, as Chrysler Group LLC, a new company formed in alliance with Fiat Group, has completed its acquisition of substantially all of Chrysler LLC’s assets and will begin operations immediately.



It is my great privilege to greet you as your new chief executive officer and to join all of you in building a great future for the new Chrysler. Although we have many challenges yet to overcome, there is no doubt in my mind that we will get the job done. Chrysler will be back—strong and competitive and a rewarding place to work.



You have been through a great deal of hardship and uncertainty over the recent past and I want to start by recognizing your commitment to Chrysler and acknowledge the many sacrifices you have made to help get an American icon back on its feet. Because of your commitment, and the hard work of a range of interested parties, including President Obama and his Automotive Task Force, Chrysler is now a more focused and nimble company that will benefit greatly from its new global strategic alliance with Fiat. The new company moves forward with significant strategic advantages, including a healthy balance sheet, a competitive cost structure, a leaner and more efficient dealer network, sound supplier agreements and significantly improved product quality and operational efficiency.



For those reasons, today is a day for optimism. Chrysler, Jeep and Dodge vehicles will once again roll out of our plants, into our dealers’ showrooms, and soon thereafter onto America’s roads and highways. We have much to look forward to. But we must also not forget what we have learned. The past few years have offered several painful lessons on what it will take to survive in the modern-day automotive industry. The alliance is a bold first step to implement those lessons we’ve learned, but it is only a first step. Now we must prove we can make it work.



We are already moving in that direction. Over the next several months, we will begin the process of transferring Fiat’s technology, platforms and powertrains for small- and medium-sized cars into Chrysler’s manufacturing facilities. This award-winning technology will be critical to helping Chrysler round out its product line and give the company a strategic advantage in many markets around the world. Work is already underway to develop new environmentally friendly, fuel-efficient, high-quality vehicles, including Chrysler’s electric-vehicle program. In the meantime, we will begin working together to find the most effective ways to combine our R&D and distribution networks so that we can begin to reap the many benefits this alliance will provide.



On the leadership side, we are very fortunate that Bob Kidder has agreed to serve as our board chairman. Bob is an experienced executive with a great track record of helping grow companies, and I’m looking forward to working with him. Several other Board seats will be filled in the coming weeks. We will keep you updated as appropriate.



As you know, Chrysler is now majority owned by the Voluntary Employee Beneficiary Association (VEBA). Fiat will initially hold a 20 percent ownership stake in Chrysler, with the ability to increase its ownership stake an additional 15 percent over time by delivering on its commitments to the company. The U. S. and Canadian governments own the rest.



Combined, Chrysler and Fiat today rank as the world’s sixth largest automaker, giving us the scale to compete and win in nearly every market in the world. But while this scale is critical, events have proven that only size managed well will be effective. I ask each one of you to take on a leadership role and work with me to restore Chrysler to being a fully competitive and profitable company once again. Numbers are important in assessing performance, but more important in my mind is how we lead people and lead change. .



Five years ago, I stepped into a very similar situation at Fiat. It was perceived by many as a failing, lethargic automaker that produced low-quality cars and was stymied by endless bureaucracies. But most of the people capable of remaking Fiat had been there all the time. Through hard work and tough choices, we have remade Fiat into a profitable company that produces some of the most popular, reliable and environmentally friendly cars in the world. We created a far more efficient company while investing heavily in our technologies and platforms. And, importantly, we created a culture where everyone is expected to lead.



We can and will accomplish the same results here. The people who will lead that charge are for the most part already at Chrysler. We plan to bring that same drive and commitment to innovation to Chrysler as we look to make it one of the driving forces again in our industry.



I am confident that we can get there together.



Thank you again for your commitment to Chrysler. I look forward to meeting and working with all of you in the months and years ahead.



Sincerely,



Sergio Marchionne





--------------------------------------------------------------------------------

 

[MustangDiesel004]

The retirment funds they're after are not based on company stock. These are pension plans the companies have paid into for the retirees. Obama and Congress have ok'd GM to get the money out of these pension plans and replace it with GM stock. No other companies in bad financial situations are allowed to touch these pensions because it is against the law. You are right we are on the hook to finance Government Motors and let the idiots who ruin this country ruin the auto business too.

 

[RVTRKN]

The big O is gonna let Chrysler do the same thing as GM. Take money from retirement accounts and replace it with worthless stock. I don't always agree with the unions and that causes problems as I belong to the SteelWorkers but if it wasn't for the unions standing up to defend the workers we would all be in the same boat as the Chinese workers. But if we're gonna play the blame game lets blame the executives that take bonuses in the millions of dollars every year and really couldn't manage a lemonade stand on a street corner. How come none of them every offered to work for Lee Iacoca's salary when he took over Chrysler? He only worked for a dollar a year.

UNIONS sucked the auto industry dry, I've been saying that for 20 years and that I'm now going to have to say they are now going to suck the tax payers dry. Obama just gave away the company to the unions that caused this in the first place. The employees have lived high on the hog for years, and now that their cash cow has finally ran out of food, they now want to graze in my pasture. If the auto company's were able to save money or buy other company's to invest in when they were profitable, they would not be in this mess. Then there is the US congress that are now sucking the unions dry, as the Unions lobby them for special protections, which have just now paid off, with their sweetheart deal from Obama.



As far as the unions helping the "little people" over the years, don't be fooled, in the early years when workers were abused by their employers, their were some sincere people that are innocent of the deals made in the early years. But if you look at communism in the pure form, they were also for the "little people", look what they got.



There will always be winners and losers, but when the government steps in, there will only be losers, the tax payer!



The steel industry is a good example of what will happen when unions control everything, as a Steelworkers member, how many job opportunities do you have now, compared to when the Steel industry was a giant, and was a mainstay in the building of our great Nation. Here in California, Kaiser Steel was huge until 1970, were the cheaper foreign labor put it out of business. The only thing that is keeping your job alive, is the protectionist policies from both political parties, that only drives up the costs to who? The auto industry!



So now they have gone to plastics were they can, and that has ruined the once long lasting autos that used to be built. Now the politician's need another cash cow, they now lobby the environmentalists who demand a fuel economical car that 80% of Americans don't want. So now stricter COLA laws that costs the auto industry more of their much needed revenues. And oil production halted in our own country, because they created a self imposed ban on drilling, throwing our money away into foreign markets draining us even more of our much needed cash.



Bottom line is, "get the &^%& out of my pocket", and wake up America your on the verge of being the "Once great Nation".



Remember, it was our industrial might that won WWII and made us the world power we now are today, and if we continue the path were on, it will be the Chinese tomarrow, thats a very water proof boat the Chinese workers are in right now, using your own words.

 

[Grizzly]

UNIONS sucked the auto industry dry, I've been saying that for 20 years and that I'm now going to have to say they are now going to suck the tax payers dry. Obama just gave away the company to the unions that caused this in the first place. The employees have lived high on the hog for years, and now that their cash cow has finally ran out of food, they now want to graze in my pasture. If the auto company's were able to save money or buy other company's to invest in when they were profitable, they would not be in this mess. Then there is the US congress that are now sucking the unions dry, as the Unions lobby them for special protections, which have just now paid off, with their sweetheart deal from Obama.



As far as the unions helping the "little people" over the years, don't be fooled, in the early years when workers were abused by their employers, their were some sincere people that are innocent of the deals made in the early years. But if you look at communism in the pure form, they were also for the "little people", look what they got.

I agree with you completely. The unions were needed in the 20's and 30's, but not anymore.



Toyota, Honda and Nissan manufacture cars in America just fine without unions.