Topic: Chrysler workers to get bonus cheques

[rrocket]

Despite posting a loss, Chrysler workers to get bonus cheques. Wonder when taxpayers (Chrysler part owners) are getting their bonus cheques?   

http://www.cbc.ca/canada/windsor/story/2011/02/01/wdr-chrysler-bonus-cheques.html

[articsteve]

Jan/11

Just 16.3% of all Chrysler Group sales were cars, all others were "light trucks" of one kind or another

I can't conceive a time where Chrysler will repay any loans.  If gas goes up significantly in the USA, I think just breaking even would be a miracle.  I really think their rear drive Brampton vehicles are on borrowed time, unfortunately.

[Weexy]

Jan/11

Just 16.3% of all Chrysler Group sales were cars, all others were "light trucks" of one kind or another

I can't conceive a time where Chrysler will repay any loans.  If gas goes up significantly in the USA, I think just breaking even would be a miracle.  I really think their rear drive Brampton vehicles are on borrowed time, unfortunately.

My brother works for a supplier to that Brampton plant and they are working all the overtime they want since they can't build these cars fast enough... with the US economy still more or less in the dumper who are buying these things??

[articsteve]

Too much effort to find the link on automotive news, but 50% of their "cars" go to fleets.  Ontario needs Chrysler.

[rrocket]

Too much effort to find the link on automotive news, but 50% of their "cars" go to fleets.  Ontario needs Chrysler.

The story I read was more...was closer to 60%!

[Weexy]

Even the rear-drivers - Chargers/Challengers etc...?
Thats what my brother says they're supplying

[TopGun]

Ah...silly WxyOne18...when will you learn.  Good sales numbers are irrelevant when they come from a domestic brand!

Chrysler has done a wonderful job coming out of this.  I actually have much more optimism for Chrysler (thanks to Fiat and all of their contribution) than I do for GM.  Ackerson seems be moving towards the nickname HAckerson.

[Erik]

Jan/11

Just 16.3% of all Chrysler Group sales were cars, all others were "light trucks" of one kind or another

I can't conceive a time where Chrysler will repay any loans.  If gas goes up significantly in the USA, I think just breaking even would be a miracle.  I really think their rear drive Brampton vehicles are on borrowed time, unfortunately.

Chrysler is paying back the loans every month.

Some of us still like full size, RWD vehicles.

[Erik]

Ah...silly WxyOne18...when will you learn.  Good sales numbers are irrelevant when they come from a domestic brand!

Chrysler has done a wonderful job coming out of this.  I actually have much more optimism for Chrysler (thanks to Fiat and all of their contribution) than I do for GM.  Ackerson seems be moving towards the nickname HAckerson.

Agreed.

 I predict Chrysler is going to be the most interesting and dynamic auto maker in the NA market within a couple of years. Nothing but nice stuff coming down the line.

[Erik]

Despite posting a loss, Chrysler workers to get bonus cheques. Wonder when taxpayers (Chrysler part owners) are getting their bonus cheques?   

http://www.cbc.ca/canada/windsor/story/2011/02/01/wdr-chrysler-bonus-cheques.html

VERY small part owners. UAW retirement fund owns the majority.

Chrysler is unprofitable because it is paying back the loans.

[rrocket]

Ah...silly WxyOne18...when will you learn.  Good sales numbers are irrelevant when they come from a domestic brand!

Chrysler has done a wonderful job coming out of this.  I actually have much more optimism for Chrysler (thanks to Fiat and all of their contribution) than I do for GM.  Ackerson seems be moving towards the nickname HAckerson.

Agreed.

 I predict Chrysler is going to be the most interesting and dynamic auto maker in the NA market within a couple of years. Nothing but nice stuff coming down the line.

Not sure how you can call declaring BK and taking government money is a "wonderful job"...but that's just me.

I think the companies who didn't declare BK in this recession are the ones doing a wonderful job...

[PJungnitsch]

They didn't do a good job going in, agreed. The Mercedes-induced death spiral was nothing to brag about. But Cerberus, and now Fiat, are doing an amazing job coming out.

Not sure if GM management has really faced why it failed. Chrysler knew why it failed, and is making the most of the second chance. Whether Fiat-Chrysler can pull it off is unknown, but it's looking better day by day.

[Erik]

Ah...silly WxyOne18...when will you learn.  Good sales numbers are irrelevant when they come from a domestic brand!

Chrysler has done a wonderful job coming out of this.  I actually have much more optimism for Chrysler (thanks to Fiat and all of their contribution) than I do for GM.  Ackerson seems be moving towards the nickname HAckerson.

Agreed.

 I predict Chrysler is going to be the most interesting and dynamic auto maker in the NA market within a couple of years. Nothing but nice stuff coming down the line.

Not sure how you can call declaring BK and taking government money is a "wonderful job"...but that's just me.

I think the companies who didn't declare BK in this recession are the ones doing a wonderful job...

He never said a wonderful job going bankrupt. He said a wonderful job since coming out of it.

[articsteve]

Chrysler is paying back the loans every month.


Posted by LaborUnionReport (Profile)

Tuesday, February 1st at 6:30AM EST


On Thursday, Reuters reported that Chrysler is lobbying Washington for $3 billion in subsidized loans from the Department of Energy that it was promised in 2009 to spur the development of fuel efficient cars.

Chrysler’s $3 billion loan application is still pending, denying the automaker a chance to refinance its pricey bailout loans before an expected initial public offering this year.

“It just underlines the special challenges for Chrysler,” Sean McAlinden, chief economist for the Center for Automotive Research, said of GM’s decision to withdraw its application

“They’ve got another really tough year and they need the money.”

On Monday, however, when Chrysler reported its 2010 numbers, it revealed the company lost $652 million for the year.

[Erik]

Chrysler is paying back the loans every month.


Posted by LaborUnionReport (Profile)

Tuesday, February 1st at 6:30AM EST


On Thursday, Reuters reported that Chrysler is lobbying Washington for $3 billion in subsidized loans from the Department of Energy that it was promised in 2009 to spur the development of fuel efficient cars.

Chrysler’s $3 billion loan application is still pending, denying the automaker a chance to refinance its pricey bailout loans before an expected initial public offering this year.

“It just underlines the special challenges for Chrysler,” Sean McAlinden, chief economist for the Center for Automotive Research, said of GM’s decision to withdraw its application

“They’ve got another really tough year and they need the money.”

On Monday, however, when Chrysler reported its 2010 numbers, it revealed the company lost $652 million for the year.

And?

They are paying back the loans they took from the gov't, at pretty horrendous interest rates, every month. Last I heard Marchionne say the loan repayment is what is dragging them into a loss.

[rrocket]

And?

They are paying back the loans they took from the gov't, at pretty horrendous interest rates, every month. Last I heard Marchionne say the loan repayment is what is dragging them into a loss.

IIRC, it was 9%, which is a spectacular rate considering BK.  Go ahead...declare BK yourself and see if you can get a loan for under 10%...

[Erik]

And?

They are paying back the loans they took from the gov't, at pretty horrendous interest rates, every month. Last I heard Marchionne say the loan repayment is what is dragging them into a loss.

IIRC, it was 9%, which is a spectacular rate considering BK.  Go ahead...declare BK yourself and see if you can get a loan for under 10%...

They are paying 10.55 on the vast majority of it.

[articsteve]

And?

Paying back loans while at the same time asking for an additional 3 billion, plus paying bonuses and if oil prices shoot skyward the go to vehicle is a little Fiat.   

[Erik]

And?

Paying back loans while at the same time asking for an additional 3 billion, plus paying bonuses and if oil prices shoot skyward the go to vehicle is a little Fiat.   

Different loans and programs. The new money is not TARP or anything like it. A government program (section 136 of the Energy Independence and Security Act) created in 2007 with LOW interest rates to support development of fuel efficient cars.

So you blame them for not having enough fuel efficient cars, and you blame them for trying to make use of a government program to create fuel efficient cars.

Paying bonuses was a great move to get the workers onboard and create loyalty and improve morale in a very tough year.  Marchionne is looking absolutely brilliant as an auto exec.

**edit** apparently Ford, Nissan, Fisker and Tesla have already received loans from the government under the section 136 loans.

[Erik]

I have actually seen references to Chrysler paying some of it's loans to the US government at 14.33%.