Chrysler will not repay back its "loans" even if it exits bankruptcy

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http://money.cnn.com/2009/05/05/news/companies/chrysler_loans/index.htm?postversion=2009050519

NEW YORK (CNNMoney.com) -- Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler's bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company's key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler's operations during bankruptcy.

An Obama administration official confirmed Tuesday that Chrysler won't be repaying the loans, though a portion of the bridge loan may be recovered by Treasury from the assets of Chrysler Financial, the former credit arm of the automaker which is essentially going out of business as part of the reorganization.

"The reality now is that the face value [of the $4 billion bridge loan] will be written off in the bankruptcy process," said the official, who added that the 8% equity stake that Treasury will be receiving as part of the company's reorganization is meant to compensate taxpayers for the lost money.

"While we do not expect a recovery of these funds, we are comfortable that in the totality of the arrangement, the Treasury and the American taxpayer are being fairly compensated," said the official.

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I KNEW this was going to happen. I KNEW it. I think a lot of us knew it. But it still pisses me off to see it become reality. "Let's piss away billions of taxpayer dollars on a company that we all know is going to be bankrupt in a few months away!" GREAT idea gubbermints! And an 8% equity stake in a bankrupt company is fucking worthless and they know it. Way to completely screw America again guys.
 
America. America. THIS IS YOUUUUUU.

I finally understand completely the meaning of that jingle now.
 
Any chance if they come out of bankruptcy we can find all of the CEO's and other higher-ups that led them to it, and hang them?
 
sometimes i feel that china has the right idea with stuff like this, they just kill the bastards, like the tainted milk guys.
 
[quote name='mykevermin']no shit.

Stop buying American, if there is such a thing anymore.[/quote]

I'll be sure to import all of my food from now on and I'm switching to European porn.
 
Well DUH

I would guess even if they tried to pay it back (or another company in a similar situation), this administration would refuse the payback to maintain control over them.
 
American cars are barely even American anymore anyway. Mine was built in Canada for crying out loud. Only the parent companies are American, the product is made wherever they can find cheap labor.
 
This is terrible. I can't believe the government would allow this. Chrysler is telling us all to bend over and we're all asking "How much?"

I'd really like to see if there's anyone outside of auto workers who are crying, "Buy American, not imports." The first new car I buy is going to an import. It's going to come from a very, very far place from America.
 
[quote name='Friend of Sonic']I can't believe the government would allow this.[/quote]

Don't you mean "I can't believe the gov't would enable this." ?
 
The Chrysler bankruptcy is being used as a blueprint for what will most likely happen to GM next month. So expect to see similar news when GM goes bankrupt. I wish I could have a loan to me forgiven. It wouldn't even need to be in the billions of dollars. Just 1 million should be plenty.
 
I am shocked -- shocked! -- that this has happened. We'll also be shocked -- shocked! -- when the exact same thing happens in the case of GM. Only us suckers (i.e. taxpayers) actually have to repay our debts. You know, us losers who actually didn't borrow more than we could afford and lived within our means. Yes, us. And here comes big brother government, which aided and abetted this bullshit, to the rescue! fuck me. fuck us all.
 
[quote name='mykevermin']no shit.

Stop buying American, if there is such a thing anymore.[/QUOTE]

Let's make the problem worse .

Isn't that why Chrysler And GM [and Ford] are in trouble in the first place ?

Like it or not the economy is not going to get better buying foreign .

http://freep.com/article/20090506/COL12/90506056/Suicidal+man+closes+I-696

traffic_20090506115958_320_240.JPG
 
No company deserves blind loyalty. That what pisses me off about the "buy american" folks. I should buy something just because it was made here? fuck that, i'll buy whatever i think is best for me. If american car manufacturers want us to buy american cars, they'll have to earn it like everyone else.
 
[quote name='JolietJake']No company deserves blind loyalty. That what pisses me off about the "buy american" folks. I should buy something just because it was made here? fuck that, i'll buy whatever i think is best for me. If american car manufacturers want us to buy american cars, they'll have to earn it like everyone else.[/quote]

You're why the terrorists are winning and the cat is pregnant.
 
[quote name='Friend of Sonic']If buying crappy, unreliable American cars that pay for ridiculous unions save our economy, maybe I don't want to save our economy then.[/QUOTE]

What a great stereotype to live by .

[quote name='JolietJake']No company deserves blind loyalty. That what pisses me off about the "buy american" folks. I should buy something just because it was made here? fuck that, i'll buy whatever i think is best for me. If american car manufacturers want us to buy american cars, they'll have to earn it like everyone else.[/QUOTE]

I'm not blindly loyal to any one company .

There are a lot of american cars to choose from they are far from being all bad .

I guess you must know someone who has had a bad experience .
 
[quote name='elprincipe']I am shocked -- shocked! -- that this has happened. We'll also be shocked -- shocked! -- when the exact same thing happens in the case of GM. Only us suckers (i.e. taxpayers) actually have to repay our debts. You know, us losers who actually didn't borrow more than we could afford and lived within our means. Yes, us. And here comes big brother government, which aided and abetted this bullshit, to the rescue! fuck me. fuck us all.[/QUOTE]

If you borrowed it, you weren't living within your means, and couldn't afford it. But I see what you mean, and would love to get a piece of this Chrysler forgiveness on my student loans, as well...Oh, wait! You can't bankrupt that shit!:cry:
 
[quote name='Richlough']What a great stereotype to live by .



I'm not blindly loyal to any one company .

There are a lot of american cars to choose from they are far from being all bad .

I guess you must know someone who has had a bad experience .[/quote]
Yeah i know him, he's me. That isn't the point though. I'll buy whatever fits me and i can afford. Foreign or domestic, i really don't care, but i'm not buying american solely because someone tries to guilt trip me into it. If Ford, GM, and Chrysler die, it's their own faults, not mine.
 
No such thing as an "American" car anyhoo.

More 'mericans have hands in manufacturing the average Toyota Camry than the average GM any-fuckin-thing.
 
[quote name='Richlough']What a great stereotype to live by .



I'm not blindly loyal to any one company .

There are a lot of american cars to choose from they are far from being all bad .

I guess you must know someone who has had a bad experience .[/QUOTE]

Give me a compelling reason to support the American automakers, given how their companies have been run and how they will be run.
 
[quote name='Friend of Sonic']Give me a compelling reason to support the American automakers, given how their companies have been run and how they will be run.[/QUOTE]

That's up to you, I couldn't even convince people to buy HD DVD over Bluray .

How about more americans will end up losing there jobs as a result of economic collapse .

It would be like telling you to go back to eat at a particular restaurant that you had one bad meal at .
 
[quote name='Richlough']That's up to you, I couldn't even convince people to buy HD DVD over Bluray .

How about more americans will end up losing there jobs as a result of economic collapse .

It would be like telling you to go back to eat at a particular restaurant that you had one bad meal at .[/QUOTE]

I never had a 'bad meal' because the cars I've purchased were older cars I could pay for out of pocket-- 1200-1500 types. But these companies are complete crap. I mean, look at the contents of the OP. Chrysler is outright refusing to pay back money that was originally at one point called a loan. I mean, I don't know of a better reason to not support a company.

Or do you think that it's our fault, as Americans who didn't buy enough domestic cars, that Chrysler decides to run their company into the ground and steal billions in the process?
 
[quote name='orko60']If you borrowed it, you weren't living within your means, and couldn't afford it. But I see what you mean, and would love to get a piece of this Chrysler forgiveness on my student loans, as well...Oh, wait! You can't bankrupt that shit!:cry:[/quote]

Bullshit!!!!!

Utilizing Debt by borrowing at an auto maker's insanely low interest rate is just a smart financial decision.
 
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[quote name='JolietJake']Yeah i know him, he's me. That isn't the point though. I'll buy whatever fits me and i can afford. Foreign or domestic, i really don't care, but i'm not buying american solely because someone tries to guilt trip me into it. If Ford, GM, and Chrysler die, it's their own faults, not mine.[/quote]

My father and his friends are all about American auto manufacturers. I disagree with them, but listening to them has lead me to a theory.

Most of the baby boomer generation loves American made autos. The tradition and nostalgia start juices flowing whenever the subject comes up. Ford, Chevy, Pontiac, etc. were the only game in town when they grew up in the 50's - 60's and the competition created prior to mergers lead to high quality products. The love affair allowed these same companies to succeed while producing trash. Later generations grew up while these companies were making junk and aren't emotionally tied to the past. Quality and value slowly overtake the warm fuzzy feelings. Thus, high quality foreign auto makers have gradually taken market share from their American counterparts.

But that's just my retarded, probably false theory ;)
 
[quote name='orko60']If you borrowed it, you weren't living within your means, and couldn't afford it.[/QUOTE]

Not true. Most people do not have hundreds of thousands of dollars lying around at any one time, but can reasonably expect to earn that amount and more over the 30 years of a mortgage. Even if you have the money, it's better tax-wise to deduct the interest than just purchase a home outright.
 
[quote name='paddlefoot']My father and his friends are all about American auto manufacturers. I disagree with them, but listening to them has lead me to a theory.

Most of the baby boomer generation loves American made autos. The tradition and nostalgia start juices flowing whenever the subject comes up. Ford, Chevy, Pontiac, etc. were the only game in town when they grew up in the 50's - 60's and the competition created prior to mergers lead to high quality products. The love affair allowed these same companies to succeed while producing trash. Later generations grew up while these companies were making junk and aren't emotionally tied to the past. Quality and value slowly overtake the warm fuzzy feelings. Thus, high quality foreign auto makers have gradually taken market share from their American counterparts.

But that's just my retarded, probably false theory ;)[/quote]I agree actually. Back then a lot of foreign vehicles sucked, they were small and underpowered econo boxes. Most of us grew up after that, when foreign vehicles were comparable with domestics. We don't have that negative view of the foreign vehicles.
 
[quote name='mykevermin']No such thing as an "American" car anyhoo.

More 'mericans have hands in manufacturing the average Toyota Camry than the average GM any-fuckin-thing.[/quote]
Like i said, my GM was made in Canada, so yeah, go USA.
 
[quote name='Richlough']Let's make the problem worse .

Isn't that why Chrysler And GM [and Ford] are in trouble in the first place ?

Like it or not the economy is not going to get better buying foreign .

http://freep.com/article/20090506/COL12/90506056/Suicidal+man+closes+I-696[/QUOTE]


The "buy American" ideal falls short when the American companies produce shitty cars.

Aside from that, the foreign makers have plenty of plants that still provide American jobs. A lot of Honda and Toyota jobs have been created in the past year due to manufacturing being ported over here from Japan. It's really just a paradigm shift from Chrysler/GM to Toyota/Honda. Buying "American" cars isn't going to save the economy when buying a Honda or a Toyota can do more, if not better.

About the only American car I might consider buying these days would be a Ford, and it goes to show since Ford seems to be doing pretty okay.
 
[quote name='JolietJake']Like i said, my GM was made in Canada, so yeah, go USA.[/quote]

My mitsubishi was assembled in Normal, IL... glad I can support midwest Americans with my purchase.

Bottom line, even if these American companies tumble, the demand for automobiles will only slump so much and foreign manufacturing will have to be established here in the States to keep up.
 
I don't get what you're saying exactly. Foreign car manufacturers have plants here because the Government wouldn't allow them to import vehicles anymore.
 
The Obama administration needs a crash course in Finance 101 if they believe an 8% equity stake is fair compensation. An 8% equity stake Ford, GM, and Chrysler wouldn't be fair compensation.
 
The problem is now that toyota just reported a bigger 1st quarter loss than GM did.... I buy the best car for me, that happens to be mostly Ford and toyota and thats how its really been for the last 10 years or so.
 
[quote name='KingBroly']I don't get what you're saying exactly. Foreign car manufacturers have plants here because the Government wouldn't allow them to import vehicles anymore.[/QUOTE]

what in the world kind of poppycock is this?
 
In the late 70's/early 80's, the US Government passed a law that made it much more difficult to import cars or placed really high tariffs on them to help protect American manufacturers.

In a response to this, Japanese auto manufacturers started opening up plants in the US and started making those cars here to basically take control of the car market here.
 
But aren't we importing the "American" autos made in Canada and Mexico?

Moreover, there are still plenty of foreign autos manufactured abroad. Mazda manufactures a ton in Japan, and there ain't no Priuses (Prii?) made in the U-S-of-boy-god-A.

None of this changes, mind you, the fact that it is difficult to identify a true "American" car.
 
Do you think the American people give a damn what a "true" American car is? They see Honda as a Japanese company and Chrysler as an American company. Whether the car is made here, Japan or wherever, that's how they see it. Nothing else matters to them.
 
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