BREAKING- Obama Administration Preparing Bankruptcy Filing for Chrysler
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BREAKING- Obama Administration Preparing Bankruptcy Filing for Chrysler
http://www.foxnews.com/politics/firs...ling-chrysler/
The Times, citing sources familiar with the process, reports that an agreement was reached with the United Automobile Workers union to protect pension and retiree health care benefits
FOXNews.com
Thursday, April 23, 2009
The Treasury Department is preparing a bankruptcy filing for Chrysler, the New York Times reports, though it wasn't immediately clear how serious the Obama Administration is about following through with that plan.
The Times, citing sources with knowledge of the process, reports that an agreement was reached with the United Automobile Workers union to protect pension and retiree health care benefits in the planned Chapter 11 filing, which could come next week.
An administration official reached by FOX Business urged caution on concluding a bankruptcy was imminent.
"It should surprise no one that the administration is planning on contingencies, but we remain focused on the goal and engaged with all stakeholders to bring Chrysler and Fiat to a working partnership," the official said.
Chrysler, one of the Big Three U.S. automakers, has been hit hard by the economic downturn and has continued to struggle despite receiving $4 billion in federal aid and despite talk of an alliance with the Italian automaker Fiat. The Obama administration has suggested it would provide more aid to Chrysler if a deal with Fiat were reached to stop the American company from failing.
GM, which has received $13.4 billion in federal loans to stay afloat, also is under continued financial stress and plans to temporarily close 13 of its plants in the United States and Mexico into the summer to save money.
The move is a result of slumping sales, but some analysts and dealers fear the plant closings could further scare car buyers already made nervous by talk of a GM bankruptcy.
GM faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn't meet the deadline, the company's CEO has said it will enter Chapter 11 bankruptcy protection.
Ford is considered to be in much better shape than its two major American competitors, and it has yet to receive federal bailout money.
The Associated Press contributed to this report.
FOXNews.com
Thursday, April 23, 2009
The Treasury Department is preparing a bankruptcy filing for Chrysler, the New York Times reports, though it wasn't immediately clear how serious the Obama Administration is about following through with that plan.
The Times, citing sources with knowledge of the process, reports that an agreement was reached with the United Automobile Workers union to protect pension and retiree health care benefits in the planned Chapter 11 filing, which could come next week.
An administration official reached by FOX Business urged caution on concluding a bankruptcy was imminent.
"It should surprise no one that the administration is planning on contingencies, but we remain focused on the goal and engaged with all stakeholders to bring Chrysler and Fiat to a working partnership," the official said.
Chrysler, one of the Big Three U.S. automakers, has been hit hard by the economic downturn and has continued to struggle despite receiving $4 billion in federal aid and despite talk of an alliance with the Italian automaker Fiat. The Obama administration has suggested it would provide more aid to Chrysler if a deal with Fiat were reached to stop the American company from failing.
GM, which has received $13.4 billion in federal loans to stay afloat, also is under continued financial stress and plans to temporarily close 13 of its plants in the United States and Mexico into the summer to save money.
The move is a result of slumping sales, but some analysts and dealers fear the plant closings could further scare car buyers already made nervous by talk of a GM bankruptcy.
GM faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn't meet the deadline, the company's CEO has said it will enter Chapter 11 bankruptcy protection.
Ford is considered to be in much better shape than its two major American competitors, and it has yet to receive federal bailout money.
The Associated Press contributed to this report.
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CL Community Team
Joined: Oct 2003
Posts: 4,335
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From: California
True, my brother owns a Jeep Wrangler Rubicon...the only problem he had with it was the shifter. He replaced it after the warranty expired. His Jeep is already paid off and it's more of a fun 4X4 vehicle. He's got over 100,000 miles on it too...
Last edited by Trexus; Apr 23, 2009 at 08:19 PM.
Lexus Fanatic
Joined: Oct 2003
Posts: 94,472
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From: Virginia/D.C. suburbs
Jeep was actually the one Chrysler division that did consistantly make money over the years (or at least didn't lose big amounts). It had a very loyal cadre of American fans, starting with the Cherokee of the 1980s, the Grand Cherokee of the 90's (which, for a while, trailed only your own Ford Explorer in SUV sales), and, of course, the ever-popular Wrangler, which many owners, unlike may other SUV's, DO take off-road consistantly.
If you look back at Jeep's history for the last 30-40 years (not necessarily to its military World War II origins), the Jeep Division was eagerly sought out by buyers for its profitability. Kaiser owned it in the 60's, then American Motors bought it, then Renault in the 1980's when they owned American Motors, then Chrysler when AMC went under, then Mercedes in 1999, then, of course, Cerebrus just recently. While all the other Chrysler divisions had problems (witness the deaths of Plymouth and Eagle), Jeep just kept plugging along, selling SUVs to its loyal base. Jeep's only real flop (and I'll admit it, based on my review of it) was the recent Compass, which, in a number of ways and for a number of reasons, was, IMO, a POS.
If you look back at Jeep's history for the last 30-40 years (not necessarily to its military World War II origins), the Jeep Division was eagerly sought out by buyers for its profitability. Kaiser owned it in the 60's, then American Motors bought it, then Renault in the 1980's when they owned American Motors, then Chrysler when AMC went under, then Mercedes in 1999, then, of course, Cerebrus just recently. While all the other Chrysler divisions had problems (witness the deaths of Plymouth and Eagle), Jeep just kept plugging along, selling SUVs to its loyal base. Jeep's only real flop (and I'll admit it, based on my review of it) was the recent Compass, which, in a number of ways and for a number of reasons, was, IMO, a POS.
Last edited by mmarshall; Apr 23, 2009 at 08:26 PM.
Lexus Champion
Joined: Jun 2008
Posts: 3,054
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From: Alberta
Why do you think Jeep is going anywhere?
From what I've read on this "proposal", it's only Chapter 11 and the gov't is going to fund them for the interim anyways. This will be the gov't funded restructuring that some of us have suggested and talked about for months now.
I would be extremely shocked if Chrysler is going anywhere.
From what I've read on this "proposal", it's only Chapter 11 and the gov't is going to fund them for the interim anyways. This will be the gov't funded restructuring that some of us have suggested and talked about for months now.
I would be extremely shocked if Chrysler is going anywhere.
