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View Poll Results: What will happen with the Chrysler/Fiat Merger?
Chrysler and Fiat will complete the deal and receive $6 Billion from the Treasury 14 48.28%
Chrysler and Fiat will complete the deal but the Treasury will reject it 2 6.90%
The Chrysler/Fiat deal falls apart and Chrysler faces liquidation 5 17.24%
The Chrysler/Fiat deal falls apart but the Treasury "blinks" - Negotiations continue past 04/30/09 8 27.59%
Voters: 29. You may not vote on this poll

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Old 05-01-2009, 06:43 AM   #106
ssdd
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yes and they know more than they are saying right now. I wonder if there is a list of the dealers they want to axe?
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Old 05-01-2009, 07:13 AM   #107
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National news stories are out that GMAC, and Chrysler have already marked the stores that will close, but will not make that public at this time.
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Old 05-01-2009, 09:24 AM   #108
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do they quote and numbers as to how many, or what the target dealer level is going to be?
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Old 05-01-2009, 09:45 AM   #109
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Quote:
Originally Posted by ssdd View Post
do they quote and numbers as to how many, or what the target dealer level is going to be?
I've done a lot of reading and so far I've seen nothing that indicates how many dealers will be terminated. In fact, most reports specifically state that Chrysler has refused to provide a number.

For what it's worth, my bet is it's 100% "Project Genesis." It's what Chrysler always wanted and now they don't have to pay for it. Accordingly, most of the cuts will come to single point dealers in metro markets. The rural stores will have minimal exposure.
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Old 05-01-2009, 09:53 AM   #110
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I hope you are correct, I heard they wanted to model Toyota and the target number was 1200 dealers!!!!!!!! that would be taking out 2000 stores!!!
surly this is bad information...
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Old 05-01-2009, 10:07 AM   #111
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Quote:
Originally Posted by ssdd View Post
I hope you are correct, I heard they wanted to model Toyota and the target number was 1200 dealers!!!!!!!! that would be taking out 2000 stores!!!
surly this is bad information...
My bet is they'll target the metro markets using Toyota as a model. Single point stores will be consolidated and the total number of points will be determined based on the market's sales volume. They'll eliminate points until they reach a "through-put" of 500+ new units/year.

I doubt they'll do much in the rural markets, most likely just consolidate the single point stores. Ironically, I think Chrysler will want to retain the rural stores so the dealer cuts do not look so drastic.
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Old 05-01-2009, 10:17 AM   #112
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Has anyone read this story in the Free Press? It details some of the assets Chrysler has been trying to sell off behind closed doors before the Ch11 filing. http://freep.com:80/article/20090501...eep+doors+open

This particular part really caught my attention:

Quote:
In recent weeks, Chrysler held what amounted to a five-day bazaar for Chinese companies, offering to sell them "engines and transmissions; different lines of vehicles, including the PT Cruiser, Sebring, 300, Grand Cherokee, Commander, Durango and Aspen, and Chrysler's Newark Paint Shop." No one bit.
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Old 05-01-2009, 11:45 AM   #113
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Originally Posted by possum View Post
All these changes, and new plans didn't happen fast, they have been planning this for months. These things don't just happen after midnight on the 29th. All that wholesale push was sure calculated.
I missed this post earlier - great point.

I'm really amazed at how many people accept the President's statement that the "hedge funds" and "speculators" drove Chrysler to bankruptcy. This has clearly been planned for months.

I know that I need to get past this point and quit harping about it. I just hate being lied to.
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Old 05-01-2009, 08:13 PM   #114
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And now it appears the next deadline has been set:

http://detroitnews.com/article/20090...y-by-late-June

According to this Detroit News story, the treasury seems to have set a 60 day deadline to get this all ironed out. If not, the story mentions liquidation.

Quote:
"Irrespective of how Chrysler came to this point, it, along with its employees, vendors, dealers, customers and the communities built around Chrysler's operations, now face two sharply divergent possibilities: Chrysler can liquidate, wind down its operations and end its long history of building American cars; or Chrysler can consummate a sale within the next 60 days to an appropriate industry partner," the Treasury said in a filing in U.S. Bankruptcy Court in New York. "Hard choices and painful consequences may well result even from a sale of Chrysler to an appropriate partner within the next sixty days. However, the alternative is far worse."
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Old 05-01-2009, 08:31 PM   #115
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Quote:
Originally Posted by Txflyer View Post
According to this Detroit News story, the treasury seems to have set a 60 day deadline to get this all ironed out. If not, the story mentions liquidation.
Article I read today indicated the Judge was definitely on pace for this situation. No frills, cut off rambling attorneys, kept things moving! Maybe the feds have impressed this time table???
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Old 05-01-2009, 09:25 PM   #116
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I do believe it will be efficient and quick and for years to come we will ALL wonder why the same strategy was not applied to say, umm, AIG, Countrywide, etc last fall??? This surgical bankruptcy thing does seem to make sense to a degree and may indeed get Chrysler back up leaner and cleaner.

That is a big hard question...why was the auto industry so singled out, but not wallstreet, banking, insurance? Still very much bothers me...
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Old 05-02-2009, 04:51 AM   #117
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Its 5:30 am on a Saturday morning, and I'm at the Dealership trying to figure out what to do, and I'm reading that CitiBank needs another $10B, no questions asked. Why are the car people treated so differently? This whole scenario is like a sit-com, I think we will wake up, and this has all just been a sickly dream. This just can't be really happening!!
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Old 05-02-2009, 10:24 AM   #118
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Quote:
Originally Posted by CL Pgh View Post
Article I read today indicated the Judge was definitely on pace for this situation. No frills, cut off rambling attorneys, kept things moving! Maybe the feds have impressed this time table???
Was that this article? http://www.cnbc.com/id/30517475

Sounds like the judge was cutting off the dealership advocate:

Quote:
After an attorney representing Chrysler's dealers started describing their role in the automaker's survival, Gonzalez cut him off twice, then said, "I think you've gotten your point across." By the end of the hearing, the judge had decided six motions in about an hour.
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Old 05-02-2009, 12:17 PM   #119
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That's the quote. Article doesn't mention the attorneys point (pro-dealer or pro-bankruptcy) but indicated the Judge kept things moving.

Side note from AllPar:
Arthur Gonzalez, one of the nation's most experienced bankruptcy judges, will oversee the bankruptcy proceedings for Chrysler. He handled both Enron and WorldCom's bankruptcies simultaneously; he has a favorable reputation and considerable experience in high-profile cases. The sale of key assets to the Treasury is expected to come very soon in the case, with other decisions possibly continuing for years.

Last edited by CL Pgh; 05-02-2009 at 02:34 PM.
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Old 05-03-2009, 10:35 AM   #120
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Quote:
Originally Posted by Txflyer View Post
Sounds like the judge was cutting off the dealership advocate:
I saw that too. My first thought was great, the dealers finally get someone to represent their interests and the first thing he does is anger the judge.

I'm sure it's not a big deal and I'm pleased to hear that the judge wants to keep things moving along.
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