Topic: Chrysler pays back government loans - 6 years ahead of schedule

[articsteve]

The Canadian taxpayer will probably take a wee bit of a hair cut on Chrysler ....

Ottawa’s stake is down to 1.66% from 2.15% initially, because Chrysler issued additional shares to Fiat, diluting the Canada-Ontario stake in the company

But nothing compared to GM.  Because the GM bailout was an equity based deal taxpayers in Canada will probably take a 8 Billion dollar haircut due to the fact that GM stock will never rise to the necessary value.

Worth it?  For those in Ontario? yes.  The rest of country?  no.

[articsteve]

Chrysler just proved them wrong, and it now operates like any other auto maker.

I'm sensing a PORKIE here. 

Chrysler doesn't operate like Ford, Toyota, Honda, et al in as much that the American/Canadian governments aka "the taxpayer" aren't equity partners.  Like I mentioned above, not as nearly as bad as GM, but just the same equity partners whose equity stake is essentially worthless at the moment.

[life in the slow lane]

And the 200 is moving at 8000 units a month

Into rental fleets.     Still a short termer sh*t box. 

That comment lacks class. Oh yeah your a car salesman. nuff said

[articsteve]

Now I do have to wonder if GMAC is still eating at the Fed discount window trough (uber cheap money usually afforded only to the largest commercial banks like JP Morgan etc.), which you could view as gov't subsidizing the US auto leasing industry which surely is a huge boon to Chryco.

I think GORGING is the appropriate term to the tune of 74% US Treasury Ownership.

For all you nit wits fine people that have no understanding of the GM/Chrysler bailouts, the real taxpayer ripoff lies in the bankrupt GMAC, RE BRANDED as Ally Financial, owned 74% by the US TREASURY whom has, and continues to, finance every vehicle bought by GM and Chrysler dealers from the "companies".  A huge sum of essentially free capital that normally would command a hefty premium.

As for customer financing, I assume it's the same way.

So essentially what you have is two bankrupt companies receiving dirt cheap discount money directly from the US Treasury masquerading as a BANK.

Comments? 

[articsteve]

That comment lacks class. Oh yeah your a car salesman. nuff said

Dealer, but I'll accept the compliment anyways.

Chrysler gave used car dealers the PT Cruiser; the undisputed POS used car of the last decade and soon to be replaced by the "200" which I suppose is actually a 300 minus 100. 

[Erik]

And the 200 is moving at 8000 units a month

Into rental fleets.     Still a short termer sh*t box. 

That comment lacks class. Oh yeah your a car salesman. nuff said

Don't worry about him. Steve is just pissed that his prediction of Chryslers demise was wrong.

[articsteve]

I give Chrysler 10 times more credit than GM.  But the horizon is looking dim.  The gas crunch is gonna take out all those nice RWD units Chrysler builds in Brampton.  Their econo car line up is non existent.  They give their 1/2 tons away.

The upside is that the UAW is heavily invested and will have no choice but to give deep concessions.

But is there time?  Not likely.

According to the Mortgage Bankers Association, at least 8 million Americans are at least one month behind on their mortgage payments.

It is estimated that there are about 5 million homeowners in the United States that are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.

Deutsche Bank is projecting that 48 percent of all U.S. mortgages could have negative equity by the end of 2011.

Get ready for the mothers of all recessions in 2012

[ajay]

You forgot to mention pestilence, why not throw in a world wide war too to top things off .
time to change jobs , its getting to you . 

[safristi]

Hey Artic ..Harponi the Magnificat doan need yer stinkin "VOTE" the grand erection was May2......your WORLD imploded.....man U has a short memory ......P.S.MEMORY STICKS are cheap these days just like bought and paid for ALLY LOANS from OBAMA MOTORS......give Eminem a call    "8Mile Big Weenie & " are his songs aboot DERITUS Michigan...... ................ALL OUR MONIES BELONG BIG CARTELS & GOV......

[Jaeger]

Your initial sarcasm implies that you don't believe this was much of a "win" for Chrysler. And I disagree. I am not using "legit" in the technical sense (legitimate), or I would have written it in full form rather than slang. I wrote it in slang because I only wish to imply that I feel that Chrysler Corp. did take a good, important step here. I'm not talking about anything that is technically legitimate or technically illegitimate, unless you are referring to whether or not this is an "legitimate accomplishment" (a term which in this case I don't believe has a solid technical definition, hence "legit" over "legitimate").

I DO think it is a good thing for Chrysler, but I disagree that it is worthy of all the self-congratulatory celebrations they are heaping upon themselves.  Like I said, If I pay off my mortgage early, the debt is gone.  That is an accomplishment of some magnitude as it reflects some fiscal wherewithal on my part.  If I refinance with a lower rate at another bank, that is certainly a good thing because I have effectively reduced my cost of borrowing.  But it is hardly worth headlines and a tickertape parade.  My debt is still there - I've just changed the name of my creditor.

Or to put it simply, this:



Reminds me a lot of this:



Jaeger

[ktm525]

What is not mentioned is that over 1.2 billion of taxpayer's money will never be paid back because it was loaned to Chrysler before the reorganization. The money got washed out in the bankruptcy process. Yeah got pennies back on the dollar....woopie.

[carcrazy]

I think the most important benefit from this move is the change in who owns and controls the company and I think this is what Marchionne tried to accomplish here and he succeeded.

You can borrow money from your mother in law to buy a house and then she moves in and tells you how to paint the walls and what furniture to buy OR borrow money from the bank and do what you want in your house.