Chrysler Loan Repay Update

[George Farris]

http://www.autoblog.com/2011/05/19/chrysler-repaying-all-7-5b-in-government-loans-by-next-week/


Somebody is doing a helluva job in Auburn Hills ....

 

[Bill Pemberton Woodhouse]

George,

Having been here for 18 years I can honestly say I have never seen such a quality line up as what Chrysler Corp. has right now. It is rewarding for past customers to come in and be blown away by the current offerings and it is unique in my automotive experience to see so many import trades for the machines " Imported from Detroit!'

In just the past couple of months we have had 2 X5 BMWs traded in for new Jeep Grand Cherokees, and Mercedes S55 for a Durango Citadel, a 5 Series BMW for a Chrysler 200, an Infiniti G35 for a new 300c, 530xi for a new Charger, and three or 4 Land Rover/ Range Rovers for Jeeps and Durangos. In years past it was hard to even remember one car of this genre being traded in and now it is a flood. The looks are drawing them in , but the super impressive interiors and ride are doing the selling. It is really not a surprise to see how quickly the loan will be paid off, as it is a different world at a our Franchise, and I am sure others are seeing the same reactions.

Sincerely,
Bill Pemberton
Woodhouse Chrysler, Dodge, Jeep, Ram, Viper

 

[01sapphirebob]

 

[daytonprowler]

"We at Chrysler borrow money the old-fashioned way. We pay it back." ​

"Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can't miss."

Lee Iacocca​

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​

 

[DarcShadow]

Not to be a downer, but a $3.5 billion bond offering, and a $2.5 billion term loan...kind of like robbing Peter to pay Paul isn't it? Then Fiat is throwing in $1.3 billion, so Chrysler has only actually paid $0.2 billion on the $7.5 billion loan.

 

[Bill Pemberton Woodhouse]

Darcshadow,

Just think of it as essentially doing what GM did. Paying off the Government, and now it is in the hands of bondholders,etc. like most Companies and they have a much more ability to do what they want without intervention.

 

[shooter_t1]

Darcshadow,

Just think of it as essentially doing what GM did.

I sure hope not. GM "payed" the taxpayer loan back with money from another taxpayer loan. Then made a commercial bragging about it that got pulled when people learned the truth.

 

[daytonprowler]

Maybe the goverment should not have given the loans to GM or Chrysler. ????? Lets put a couple hundred thousand people out of work, but not at just those companies, let's figure in the parts manufacturers, all the dealerships, etc. If GM or Chrysler had went under, Ford - who did not take any money would have been destroyed because most of the parts companies/suppliers would have gone out of business. You can't build cars without parts.

Then we all could be driving "meat and potato" cars like Camrys, Accords, Accents. ****! I see those cars at shows and at the track all the time. LOL

And, thank goodness for Fiat stepping in and helping us out.

Long live Chrysler.

 

[Kevan]

I'll bet the interest rate is better now too.

Nice job, Ralph and the folks with the calculators!!!

I sure hope not. GM "payed" the taxpayer loan back with money from another taxpayer loan. Then made a commercial bragging about it that got pulled when people learned the truth.

Heh heh...that was pretty comical. I remember seeing the ad and saying, "There's no way they sold that many Camaros!".

 

[v10enomous]

Maybe the goverment should not have given the loans to GM or Chrysler. ????? Lets put a couple hundred thousand people out of work, but not at just those companies, let's figure in the parts manufacturers, all the dealerships, etc. If GM or Chrysler had went under, Ford - who did not take any money would have been destroyed because most of the parts companies/suppliers would have gone out of business. You can't build cars without parts.

Then we all could be driving "meat and potato" cars like Camrys, Accords, Accents. ****! I see those cars at shows and at the track all the time. LOL

And, thank goodness for Fiat stepping in and helping us out.

Long live Chrysler.

Maybe the Democrats should stop taking campaign bribes from the unions and telling companies that they can't move to right to work states. Maybe Obama should stop borrowing money from China that American taxpayers have to pay back with interest to aid foreign companies that we compete with. Maybe if these Commies didn't undermine the the entire free market system American cars would be so good and affordable that nobody would give the inferior and more expensive imports a second look the way it used to be. Maybe when this is all said and done they will go bankrupt anyway because their business model is even worse now then when they did the bailouts.

The new lineup does look good though especially the 300 so enjoy them because you're financing them for everyone that leaves the lot. The American auto industry is just artificially propped up like the housing market and there is probably no real long term recover in site for either.

http://www.youtube.com/watch?v=1hhJ_49leBw

 

[shooter_t1]

Heh heh...that was pretty comical. I remember seeing the ad and saying, "There's no way they sold that many Camaros!".

Yep, I'm behind Dodge on this too. Just don't try to pull the same slight of hand B.S that GM did.

 

[viper067]

Maybe the goverment should not have given the loans to GM or Chrysler. ????? Lets put a couple hundred thousand people out of work, but not at just those companies, let's figure in the parts manufacturers, all the dealerships, etc. If GM or Chrysler had went under, Ford - who did not take any money would have been destroyed because most of the parts companies/suppliers would have gone out of business. You can't build cars without parts.

Then we all could be driving "meat and potato" cars like Camrys, Accords, Accents. ****! I see those cars at shows and at the track all the time. LOL

And, thank goodness for Fiat stepping in and helping us out.

Long live Chrysler.

This is one of those myths that just won't stop .... if Chrysler and GM went under the world would not have come to an end. Worst case (or best depending) would be that someone would have bought the pieces of the companies and formed a new company(ies) without all the baggage associated with the existing. Other companies would have also taken the places of those companies that failed. There is no such thing as to big to fail and if that is the case, all the more reason they should be allowed to fail. When you know you can't fail you will take risks that you wouldn't normally take.

All that being said, I do like the new products .... just tired of the argument that the world would have ended if they failed

 

[Slithr]

This is one of those myths that just won't stop .... if Chrysler and GM went under the world would not have come to an end. Worst case (or best depending) would be that someone would have bought the pieces of the companies and formed a new company(ies) without all the baggage associated with the existing. Other companies would have also taken the places of those companies that failed. There is no such thing as to big to fail and if that is the case, all the more reason they should be allowed to fail. When you know you can't fail you will take risks that you wouldn't normally take.

All that being said, I do like the new products .... just tired of the argument that the world would have ended if they failed

+1 ^^^^ This ..... That's what our bankruptcy laws/courts are for! My wife and I, are both doing fine now after loosing our Enron jobs 3 weeks apart in 2001 The World did not end

 

[John N]

I haven't been paying that much attention to Chrysler corporate matters. Did they really have a bond offering??? What investing fools would ever buy a bond with Chrysler's name on it after they just screwed the bondholders less than 2 years ago?

As for the bailout that should never have been. There is merit to keeping some manufacturing capacity in the US. The govt could have accomplished this without the bailouts. The govt could have simply provided the debtor in possession financing for the companies as they went through regular bankruptcy proceedings and restructuring. That would have preserved the companies and the manufacturing base, and allowed them to break contracts. That is why Obama & the Democrats would never do it, since the first contracts thrown out the window would have been with the unions.

I have said it before and will say it again, the entire bailout scam was simply a payoff for the unions that came at the expense of the company's owners and creditors. It would have been illegal 10 years ago, it is still immoral. It disgusts me.

Thank God Texas doesn't operate like Michigan.

 

[PatentLaw]

Maybe the Democrats should stop taking campaign bribes from the unions and telling companies that they can't move to right to work states. Maybe Obama should stop borrowing money from China that American taxpayers have to pay back with interest to aid foreign companies that we compete with. Maybe if these Commies didn't undermine the the entire free market system American cars would be so good and affordable that nobody would give the inferior and more expensive imports a second look the way it used to be. Maybe when this is all said and done they will go bankrupt anyway because their business model is even worse now then when they did the bailouts.

The new lineup does look good though especially the 300 so enjoy them because you're financing them for everyone that leaves the lot. The American auto industry is just artificially propped up like the housing market and there is probably no real long term recover in site for either.

http://www.youtube.com/watch?v=1hhJ_49leBw

Said by the guy living in the most Communist state in the union. Nice.

As for the new lineup.....there are some nice vehicles, but the overall cost structure of the organization has to improve before sales can skyrocket.