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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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04-08-2009, 08:45 AM | #16 |
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I was watching CNBC and Jim Press was being interviewed by Phill Lebeau at the New York Auto Show this morning. Jim held his own against the inverviewer and said that they are making great progress with Fiat (but did not go into detail), but did say that a merger with them would give them small platform product, keep american jobs, have product for the dealers, and distribution overseas. He did say that if Chrysler was not confident in the future that would not be showing off a vehicle that is not available for sale for another year (the new 2011 Jeep was on display). Mr. Press was also pushed on the bankruptcy issue and his response was that was not their intent, but it is an option.....All in all it was a much better interview than the lame phone conference we got last week, but I still will not get those 25 minutes back......I do feel a little more confident that they are working on a plan, it just would be helpful if they let us know what is going on...
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04-08-2009, 10:13 AM | #17 | |
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I just watched the CNBC interview on the Internet and agree that Press did a good job. Here's a link to the video - click here It's amazing, however, that dealers who have their life savings invested in their businesses have to resort to watching television to determine the future of their manufacturer. It's insane - there's a total lack of leadership at Chrysler when it comes to Dealer Relations. |
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04-09-2009, 11:03 AM | #18 |
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Great article in BusinessWeek - It's a standoff....
There's a great article in BusinessWeek that recaps Chrysler's current situation. The biggest hurdle is with the bond holders and it's a standoff.
BusinessWeek is reporting the Treasury has offered Chrysler's bond holders $1 Billion in secured debt with the remaining $6 Billion in Chrysler LLC stock. The Treasury's goal is to reduce Chrysler's debt by $6 Billion by forcing the bond holders to exchange their debt for stock. The question for the bond holders is - "How much is Chrysler worth if we try to sell off assets?" And "What are the odds the Chrysler/Fiat partnership will work?" Here's a link to the BusinessWeek article: click here |
04-09-2009, 11:37 AM | #19 |
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Throw another wrench into the works:
The Detroit Free Press just posted a Jim Press interview that casts some doubt on the ability of Chrysler and Fiat to reach an agreement by the May 1 deadline: http://www.freep.com/apps/pbcs.dll/a...ESS01/90409023 Be sure and listen to the interview - it really inspires confidence (insert sarchasm here). |
04-09-2009, 12:27 PM | #20 | |
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When you factor in that Jim Press almost always has a rosy outlook, that interview was somewhat disturbing. It seems like Chrysler's statements have shifted from being "confident" that the Fiat deal will come together to being "hopeful." |
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04-13-2009, 04:40 PM | #21 |
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here's a story i just came across saying chrysler and fiat are working on management and board of director issues:
http://uk.reuters.com/article/market...37958520090413 |
04-13-2009, 05:52 PM | #22 | |
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It's hard to imagine that a 20% equity partner would have the ability to demand key positions on the BOD and have their own person named as either the Chairman or CEO. I wonder if this is the "heavy hand" of President Obama's Task Force? The Task Force has already fired GM's Wagoner, so it's not unreasonable to think they're calling the shots at Chrysler too. |
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04-14-2009, 06:33 AM | #23 | |
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04-14-2009, 08:25 AM | #24 |
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It all comes down to the bond holders
The New York Times is reporting that Chrysler's bond holders will likely counter the Treasury Department's offer later this week - that will give us a much better idea of Chrysler's future.
Currently the Treasury is asking the bond holders to accept about $1 Billion for $6.9 Billion in bonds - about 15 cents on the dollar. Some of the bond holders have indicated they believe they could recover up to 70 cents on the dollar if Chrysler were liquidated. The NYT article points out a key difference between GM's debt and Chrysler's debt, Chrysler's debt is secured by hard assets. Ironically, it wasn't too long ago that Nardelli was boastful that Chrysler had identified $1 Billion in non-strategic assets that they planned to sell to reduce debt. I'm sure the bond holders will be using that statement against Chrysler as they try to better their position. Here's a link to the New York Times article: http://www.nytimes.com/2009/04/14/bu...er.html?ref=us |
04-14-2009, 11:15 PM | #25 |
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Latest report on the Chrysler/Fiat deal
The Detroit News has a story with the latest info regarding the Chrysler/Fiat discussions.
While I wish the news was more positive, I agree with many of the points reviewed in the article - the majority of which we've already covered here. The biggest question is can Chrysler survive long enough for the Fiat product to arrive? It's a sobering question given that it will be two years before new cars arrive on the showroom floor. The second question is how healthy is Fiat? The news report indicates they have almost $6 Billion that needs to be refinanced within the next year. The final question is how valuable is the technology that Fiat's willing to provide? The Task Force has retained a consulting firm to answer this question. As I've stated before, if the value exceeds $1 Billion I'd be amazed. Here's a link to the news report: http://www.detnews.com/article/20090...+Chrysler+deal |
04-15-2009, 07:18 AM | #26 |
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http://finance.yahoo.com/news/Fiat-C...-14931283.html
the news is stark, but Mr. Marchionne sounds like a smart man. Now we'll have to see if the unions have any brains... speaking of unions here is a funny union joke i got yesterday: A dedicated Teamsters union worker was attending a convention in Las Vegas and decided to check out the local brothels. When he got to the first one, he asked the Madam, 'Is this a union house?' 'No,' she replied, 'I'm sorry it isn't..' 'Well, if I pay you $100, what cut do the girls get?' 'The house gets $80 and the girls get $20,' she answered. Offended at such unfair dealings, the union man stomped off down the street in search of a more equitable, hopefully unionized shop. His search continued until finally he reached a brothel where the Madam responded, 'Why yes sir, this is a union house. 'We observe all union rules.' The man asked, 'And if I pay you $100, what cut do the girls get?' 'The girls get $80 and the house gets $20.' 'That's more like it!' the union man said. He handed the Madam $100, looked around the room, and pointed to a stunningly attractive green-eyed blonde . 'I'd like her,' he said. 'I'm sure you would, sir,' ...said the Madam. Then she gestured to a 92-year old woman in the corner, '...but Ethel here has 67 years seniority and according to union rules, she's next.' Last edited by jules4jeeps; 04-15-2009 at 07:22 AM. |
04-15-2009, 08:33 AM | #27 | |
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It's interesting that Mr. Marchionne assigns a 50/50 chance of getting this deal done because of the unions. I still think the bond holders are going to be the biggest problem. |
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04-15-2009, 09:00 AM | #28 |
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The bond holders are no small hurdle, but I suppose the piece that most people can relate to is the unions and their lack of a grasp on the reality and direness of the situation. Blathering on about bond holders would not get attention, but everyone can relate to a union autoworker making $67 an hour unwilling to accept $43 an hour and save a company. Just an example from how I sorta see it...
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04-15-2009, 09:15 AM | #29 | |
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I think most "news" that's reported in America is designed to elicit an emotional response. If a story's complex or explores a topic most people cannot relate to then it's not worthy of front page coverage. |
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04-15-2009, 09:17 AM | #30 |
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That just goes to show you how spoiled and greedy those people are. Sounds like they would rather sit on their collective butts and increase the unemployment strain on this great country of ours.
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