Chrysler to pay off fed loans

[daytonprowler]

Chrysler to pay off fed loans | detnews.com | The Detroit News

As it was said years ago, and still holds true today...

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

Lee Iacocca​

​

 

[JohnnyViper]

true to their word

 

[RPHJR]

at basically loan shark rates...

 

[Slithr]

Questions:

1) Was the UAW given any ownership in Chrysler at the expense of private investors (like GM)?

2) How much was "borrowed" and how much repaid?

3) Is Chrysler 100% privately held (publically traded), or does the Gov. now have a piece?

 

[01sapphirebob]

Great news!!

 

[viper067]

Questions:

1) Was the UAW given any ownership in Chrysler at the expense of private investors (like GM)?

2) How much was "borrowed" and how much repaid?

3) Is Chrysler 100% privately held (publically traded), or does the Gov. now have a piece?

according to the article about $2 billion was written off the the gov't

The repayment of Chrysler's government loans will reconfigure its ownership: A UAW health care trust currently has 59.2 percent; Fiat 30 percent; the U.S. Treasury 8.6 percent; and Canadian governments 2.2 percent. By year's end, however, Fiat will have 51 percent; the UAW trust 41.5 percent; the U.S. Treasury 6 percent and Canada 1.5 percent.

 

[Slithr]

Thanks viper067,

Not what I wanted to hear, personally I don't think governments (any) should be in 'business'

 

[fqberful]

Questions:

1) Was the UAW given any ownership in Chrysler at the expense of private investors (like GM)?

2) How much was "borrowed" and how much repaid?

3) Is Chrysler 100% privately held (publically traded), or does the Gov. now have a piece?

And the US govt totally screwed the Chrysler bond holders [ who are normally fist in line at a bankruptcy hearing ] and gave a big piece to the UAW. So a big YES to #1 . NO to #3 and probably not for quite some time.

--FQB

 

[Coloviper]

Like the UAW hasn't been screwing the consumer for years? The fact that the UAW owns that much is a recipe for major concern over a fractional government ownership.

 

[John N]

So tell me, are they now going to go back and make whole the bond holders that they screwed? What an embarrassment.

 

[John N]

As it was said years ago, and still holds true today...

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

Lee Iacocca

That should read; We at Chrysler do things the new fangled way. We take from the bond and common stock holders and give to the unions and government.

 

[jerseydave]

Like the UAW hasn't been screwing the consumer for years? The fact that the UAW owns that much is a recipe for major concern over a fractional government ownership.

Agree 100%!

 

[Chuck 98 RT/10]

The government might as well own all the car companies considering all the government restrictions and regulations manufacturers have to abide by.

 

[PatentLaw]

And the US govt totally screwed the Chrysler bond holders [ who are normally fist in line at a bankruptcy hearing ] and gave a big piece to the UAW. So a big YES to #1 . NO to #3 and probably not for quite some time.

--FQB

The US government screwed the bond holders? You are wrong my friend. The inept management of the previous Chrysler management team screwed the bond holders. The company was run into the ground. No new products. Poor quality products.

I did not see Ford take a payout. Were their bond holders hurt? No. In fact, if you educate yourself, you will see that Ford has been dealing in the "junk" bond market for some time. Last week, they sold off another billion. They pay higher rates because of it, but they pay off what they owe.

They are paying "loan shark" rates, but are honest and pay the money back when due.

Chrysler was lucky the government was there to bail them out.

What about all the small mom and pop companies that provided GM with parts, etc., that never got paid? They had to eat it. If the same went for Chrysler, there would be no more company.

 

[fqberful]

The US government screwed the bond holders? You are wrong my friend. The inept management of the previous Chrysler management team screwed the bond holders. The company was run into the ground. No new products. Poor quality products.

I did not see Ford take a payout. Were their bond holders hurt? No. In fact, if you educate yourself, you will see that Ford has been dealing in the "junk" bond market for some time. Last week, they sold off another billion. They pay higher rates because of it, but they pay off what they owe.

They are paying "loan shark" rates, but are honest and pay the money back when due.

Chrysler was lucky the government was there to bail them out.

What about all the small mom and pop companies that provided GM with parts, etc., that never got paid? They had to eat it. If the same went for Chrysler, there would be no more company.

Then perhaps you should ask / talk to all those pension folks that got totally hosed when the govt put the unions first and the bond holders last. They got only a few cents on the $ if any in some cases. I'm not wrong, you're lacking information / misinformed.

As for the company being poorly run, that's another issue completely, and no argument there, the management did ****. Far, far too much union input and unsustainable benefits. Ford to their benefit has a better handle on that. Better management, maybe, more profits from non-union plants, you bet. But the same fate awaits them if they let it get out of hand, it's a very thin line.

The point is NOBODY should have gotten bailouts, period. But in this case the feds decided to play favorites and in addition, gave huge pieces of GM and Chrysler to the unions *first* rather than the bond holders and other creditors.

The current regime is so overtly pro-union if you can't see that, my friend there's no hope for you. How about the NLRB siding with the unions and TELLING Boeing where they can and can't build a plant ? Really !?!?! Really !!!!!!!!!!!! Since when does the NLRB have any say in where you build facilities ? Since this regime took power supported by their union allies.

--FQB

 

[Chuck 98 RT/10]

Chrysler was lucky the government was there to bail them out.

No more lucky than a few hundred banks the government bailed out, or all the countries we give billions to just to call them our friends. A billion dollars every year to Egypt? For what? They don't like us.

The only people not getting bailed out are the middle class, most of whom are too stupid or too chicken to do anything about it.

 

[Bobpantax]

The Ford facts above are not correct.

Ford was the only one of Detroit's three automakers able to avoid taking a direct government bailout in 2009 to bypass bankruptcy. However, that doesn't mean it hasn't been able to benefit from some government largess.

Back in 2006 before the credit markets collapsed, Ford essentially mortgaged every facility it had in order to borrow $23.5 billion. That money was used to provide operating cash flow that General Motors and Chrysler didn't have when things went south in 2008. The money allowed Ford to keep the lights on, but it also saddled the company with the debt service payments of $318 per vehicle in the second quarter of this year.

Rather than direct bailouts, Ford has been able to take advantage of several government-backed low interest loan programs like the Advanced Technology Vehicle Manufacturing program run by the Department of Energy to fund new vehicle development and factory retooling. Ford is also getting tax breaks and low interest loans from various states as well as other countries like the UK and Russia. At the same time, it has used profits earned in the past year to pay down higher interest debt earlier than planned. In doing so, Ford hopes to get back from junk bond status to investment grade by late 2011 or early 2012.

[Source: Wall Street Journal]

Ford Gets $5.9 Billion Government Loan

Tuesday, June 23, 2009

You must be registered for see images attach

• Print
• ShareThis

DEARBORN, Mich. — The Energy Department said Tuesday it would lend $5.9 billion to Ford Motor Co. and provide about $2.1 billion in loans to Nissan Motor Co. and Tesla Motors Inc., making the three automakers the first beneficiaries of a $25 billion fund to develop fuel-efficient vehicles.