04/30/09 - Chrysler's Future, what happens now?

[CL Pgh]

From Nardelli letter:

As a part of the restructuring, most manufacturing operations will be temporarily idled effective Monday, May 4, 2009. Normal production schedules will resume when the transaction is completed, which is anticipated within the next 30 to 60 days. Hourly employees will receive unemployment benefits, as well as supplemental pay that will amount to most of their base wages.

This should also insure this "restructuring" process doesn't drag out!

[XDCX]

Reuters is reporting that Nardelli will return to Cerberus in a consulting role once Chrysler's new BOD has named his successor.

Given the money he made at Home Depot, I'm surprised he doesn't just walk away and retire.

[dafuzz1956]

Well cerberus wnts to go under then they will hire the right guy for the job!!

[XDCX]

Originally Posted by CL Pgh

From Nardelli letter:

As a part of the restructuring, most manufacturing operations will be temporarily idled effective Monday, May 4, 2009. Normal production schedules will resume when the transaction is completed, which is anticipated within the next 30 to 60 days. Hourly employees will receive unemployment benefits, as well as supplemental pay that will amount to most of their base wages.

This should also insure this "restructuring" process doesn't drag out!

That's really interesting.

I was listening to CNBC this morning and most of their guests scoffed at the concept that Chrysler could emerge from bankruptcy in 30 - 60 days. They commented that it only takes a few well funded dissenting parties to derail the whole process.

Maybe having too much inventory is a good thing right now?

[Txflyer]

Originally Posted by XDCX

Maybe having too much inventory is a good thing right now?

I'm just wondering how quick the incentives / dealer cash will be paid if we manage to sell anything during the bankruptcy? Hopefully this will be addressed during the conference call.

[crowe]

Originally Posted by Txflyer

I'm just wondering how quick the incentives / dealer cash will be paid if we manage to sell anything during the bankruptcy? Hopefully this will be addressed during the conference call.

"To ensure business will continue without interruption for our customers as well as our dealer Sales and Service centers, Chrysler also filed “First Day” motions with the court, seeking relief to honor and pay post-petition obligations to employees, suppliers, and dealers as an essential component of preserving ongoing value. We expect to receive approval for these motions within the next few days. If you have further question regarding this process please visit www.ChryslerRestructuring.com or call 1-877-271-xxxx."

[jules4jeeps]

Not sure what to make of this, but the ability to EFT with CFC has been suspended. We were trying to actually GIVE them money (trade payoff) via EFT and no go due to todays announcement. We only have one outstanding contract w/ CFC and a very short outstanding incentive receivables list.

[CL Pgh]

Originally Posted by XDCX

Maybe having too much inventory is a good thing right now?

Absolutely!!! Who would'a thunk it!?

[XDCX]

Originally Posted by jules4jeeps

Not sure what to make of this, but the ability to EFT with CFC has been suspended. We were trying to actually GIVE them money (trade payoff) via EFT and no go due to todays announcement. We only have one outstanding contract w/ CFC and a very short outstanding incentive receivables list.

That's interesting. It may just be a coincidence but at this point, who knows?

[XDCX]

According to a Bloomberg news report a Bankruptcy judge has already been named to handle the Chrysler case.

It's the same Judge who handled the Enron bankruptcy case.

Here's a link to the news report: http://www.bloomberg.com/apps/news?p...HBU&refer=news