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Old 04-30-2009, 12:50 AM   #1
XDCX
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Default 04/30/09 - Chrysler's Future, what happens now?

As I type this thread it's almost midnight on the West Coast. Tomorrow morning at 8:30 President Obama is expected to outline Chrysler's future.

At this late hour the media reports have printed their final update, a Chapter 11 Bankruptcy filing for Chrysler is almost certain.

Like a lot of people who read this site, Chrysler's been a big part of my life for a long time. The only emotion I feel at this hour is anger - I've grown tired of the lies and deceit.

The Wall Street Journal reports that although the bond holders will be blamed, Chrysler needs to file bankruptcy so they can selectively terminate franchise agreements and shield Fiat from environmental and asbestos litigation. click here

Bankruptcy was always the master plan, and any message to the contrary was just a lie.

Although anger is probably a justifiable emotion, it's not the best mindset for surviving these challenging times.

What do you think will happen next for Chrysler and how do you plan to become one of the survivors?
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Old 04-30-2009, 05:59 AM   #2
ssdd
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I have no clue, but I feel the same as you do. this is a sad sad day if you ask me.
the numbers are starting to come out this morning. they said on national news that Chrysler was the third largest u.s. employer with 55000 jobs....
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Old 04-30-2009, 06:00 AM   #3
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Like you said, I think Bankruptcy has been the master plan since late last year. The ONLY reason Chrysler crammed vehicles down their dealer's throats a couple months back was to put more $$$ in the Cerebus coffers. The market just wasn't there to move that many vehicles and Chrysler knew it.

Now, 50% of those same dealers who were "doing God's work" will now get the axe. That should really help them move more units in the future. Angry is an understatement for how I feel, but I'm also sad. Sad for what our country seems to be evolving into.

Personally, I'd give Chrysler a 50/50 chance of going the route of Circuit City before the end of the year.
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Old 04-30-2009, 06:21 AM   #4
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Exactly. Too bad we are not as valuable as AIG.
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Old 04-30-2009, 07:10 AM   #5
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I hope it is not BK.
But I keep in mind: Most of the things we worry about either never come to pass or they are not as bad as we thought. Also we can let the worst events in life ruin us or persevere to be better in the long run. We all hate to lose & love to win but the key is to live to play again.
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Old 04-30-2009, 08:40 AM   #6
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Default President's speech now expected at Noon - EST

The Wall Street Journal reports that President Obama is now expected to deliver his speech concerning Chrysler's fate at noon - EST.

While there are still a number of unknowns, the following appears certain:
  • Chrysler will file for Chapter 11 Bankruptcy protection
  • Chrysler and Fiat will sign an agreement by the end of the day
  • Nardelli will be replaced very soon with either a Chrysler or Fiat Executive
  • Chrysler will use their bankruptcy powers to selectively terminate dealers
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Old 04-30-2009, 09:00 AM   #7
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Default It's A Sad Day In The History Of Chrysler

I've been with Dodge since 1970 an I never thought I'd see a day like this comming. Started out selling cars and worked my way up to buy two Chrysler Dealerships. It's been a great ride and it's very sad to see this happen to a great company.
My opinion is when the CEO position was given to Bob Eaton instead of Bob Lutz, a real car guy. Eaton filled his pockets with cash and sold us off to Daimler and their arogants ways of doing business. They bled the company of all the cash and then passed us on to a bunch of accounts...way to bad for the car business, a bunch of numbers guys trying to run the company.

I guess will see now how Fiat does with a clean slate and lowered debt. How many dealers will be terminated during this cleansing...it's not going to be pretty I can gurantee that.

What about CFC, no one understands if you can't get them fianced you can't sell them anything. That's why Honda, Toyota, Nissan and everyone else is having their sales fall of 38% and 40% during the first quarter of 09.

The king of goverment motors just doesn't get it.

Last edited by johnvan; 04-30-2009 at 09:05 AM.
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Old 04-30-2009, 09:13 AM   #8
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Great post, welcome!

I too have been with them since '75 so I have rode this roller coaster also...
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Old 04-30-2009, 09:19 AM   #9
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johnvan - Great post - Welcome to DealershipForum.com

Your thoughts are shared by many of the members here, myself included. Have you read the book Taken for a Ride? I've always thought it was an excellent recap of the whole Iacocca/Lutz/Eaton fiasco.

Concerning Chrysler Financial, that's a real wild card. The latest news reports from the WSJ suggest that it just gets "folded in" to GMAC.
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Old 04-30-2009, 09:28 AM   #10
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The Eaton story is exactly right. It will be interesting to see if todays Dealer Statement gets paid.
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Old 04-30-2009, 09:35 AM   #11
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Quote:
Originally Posted by Txflyer View Post
Now, 50% of those same dealers who were "doing God's work" will now get the axe. That should really help them move more units in the future. Angry is an understatement for how I feel, but I'm also sad. Sad for what our country seems to be evolving into.
Great post - this is exactly what I was thinking when I started this thread last night.

We all remember the "doing God's work" Conference Call. How many times has Press and the rest of the Chrysler Management Team used the pending threat of bankruptcy as a club to induce dealer action?

They knew this day was coming and bankruptcy was always the master plan. Everything else was just a lie.
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Old 04-30-2009, 09:41 AM   #12
squish
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Quote:
Originally Posted by ssdd View Post
they said on national news that Chrysler was the third largest u.s. employer with 55000 jobs....
i saw that too. can that be right? it must be something like the 3rd largest privately held company or something.
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Old 04-30-2009, 10:15 AM   #13
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Quote:
Originally Posted by XDCX View Post
Concerning Chrysler Financial, that's a real wild card. The latest news reports from the WSJ suggest that it just gets "folded in" to GMAC.
CNBC just reported that Chrysler Financial goes away - the lending to the Chrysler dealers and customers will be done by GMAC.
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Old 04-30-2009, 10:25 AM   #14
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Default President announces that the Fiat deal is done

The President announced that Fiat has completed their agreement with Chrysler.

More details to follow.....
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Old 04-30-2009, 10:30 AM   #15
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Nardelli to leave after Chrysler re emerges from bankruptcy...
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