Chrysler Bankruptcy Plan Is Announced

[Stijloor]

Breaking News Alert
The New York Times
Thursday, April 30, 2009 -- 12:09 PM ET
-----
Chrysler Bankruptcy Plan Is Announced

Chrysler, the third-largest American auto company, will seek bankruptcy protection and enter an alliance with the Italian automaker Fiat, the White House announced Thursday. The bankruptcy case, which officials envisioned as a swift, "surgical" process, was set to be filed in United States Bankruptcy Court in New York.

Read More:
http://www.nytimes.com/?emc=na

 

[Craig H.]

Breaking News Alert
The New York Times
Thursday, April 30, 2009 -- 12:09 PM ET
-----
Chrysler Bankruptcy Plan Is Announced

Chrysler, the third-largest American auto company, will seek bankruptcy protection and enter an alliance with the Italian automaker Fiat, the White House announced Thursday. The bankruptcy case, which officials envisioned as a swift, "surgical" process, was set to be filed in United States Bankruptcy Court in New York.

Read More:
http://www.nytimes.com/?emc=na

So, all the money thrown at them resulted in bankruptcy anyway.



Who saw this one coming.....

 

[SteelMaiden]

Who saw this one coming.....

Indeed. I need a bigger eye roll emoticon.

 

[db]

My main concern is for all of the mom and pop companies in their supply chain. Bankruptcy means those shops won’t get paid. And most (that I personally know of) will have no choice but to close. I know of about half a dozen, employing an average of about 50 folks that will be forced to shut down.

 

[bobdoering]

So, all the money thrown at them resulted in bankruptcy anyway.

Perhaps. But, it might have bought enough time to make it Chapter 11 rather than Chapter 7. We will see how much more the Feds can meddle with it.

Just imagine the shape Ford will be in if the Feds succeed in killing off GM and Chrysler with the loan limitations and meddling. Good call, Ford!

 

[SteelMaiden]

My main concern is for all of the mom and pop companies in their supply chain. Bankruptcy means those shops won’t get paid. And most (that I personally know of) will have no choice but to close. I know of about half a dozen, employing an average of about 50 folks that will be forced to shut down.

And these are the poor folks that automotive has already cut to the bare minimum with their required annual cost cuts, etc. Sure is funny how all the suppliers are expected to cut costs but the price of cars always goes up. hmmm.....I wonder who has been pocketing the difference?

 

[bobdoering]

The White House expects the bankruptcy case to take 30 to 60 days.

But, we have a decent model as to how quickly a large automotive company can come out of bankruptcy: Delphi.

Nowhere near 60 days. October, 2005 was when Delphi started its bankruptcy...

Reality versus fantasy?

 

[wmarhel]

GM needs be in line right behind Chrysler for bankruptcy filings. According to the Wall Street Journal, there were some Hedge Funds that just weren't willing to accept the scraps left behind after the restructuring.

Wayne

 

[SteelMaiden]

My oldest son was discussing the whole bankruptcy issue with me the other day. This was something they have been following in his business classes at college. Unfortunately, from the comments that he made, I wonder just how much his teachers actually know. They hadn't talked about legacy costs, he was told that if GM went into bankruptcy they would close down, there would be no replacement parts available, the market would collapse further because all the people driving GM would have vehicles that would fall apart due to the lack of replacement/maintenace parts. Good grief, and we wonder why this country is in the shape it is in.

We have a family saying at our house. We use it whenever krap like this is bandied about. It is: "I see stupid people.":mg:

 

[bobdoering]

...there would be no replacement parts available, the market would collapse further because all the people driving GM would have vehicles that would fall apart due to the lack of replacement/maintenance parts. Good grief, and we wonder why this country is in the shape it is in.

How is it I can still get parts for my 1963 Oldsmobile and 1951 Dodge? I guess the faculty never heard of aftermarket.