Sell Chrysler--Not On Your Life

The New York Times is reporting that the Treasury Department

is preparing a bankruptcy filing for Chrysler that could happen

by next week. The Times attributes its report to "people with

direct knowledge of the action." Pensions and health benefits

would be protected as a condition of the Chapter 11 bankruptcy

filing, according to an "agreement in principle" between the

Treasury and the United Automobile Workers, the Times says.

Also, Fiat would complete its alliance with Chrysler while the

company is under bankruptcy protection. The Times continues:

The only major question that remains unresolved is what happens

to Chrysler’s lenders, who hold $6.9 billion in company debt.

The government’s most recent offer, presented Wednesday,

would give the company’s lenders about 22 cents on the dollar,

or $1.5 billion, and a 5 percent equity stake in a reorganized

Chrysler. Earlier this week, a steering committee of the lenders

proposed that they receive 65 cents on the dollar, or $4.5 billion,

and a 40 percent equity stake. If no agreement is reached, a

nasty legal fight could emerge in bankruptcy. The creditors’

claims are backed by virtually all of the company’s collateral,

including plants, brands and equipment, and the lenders will

argue that they have first claim on those assets. For more

information, see
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stories.

What a minute, doesn't the name Hemi mean anything to you?

These engines are the great great grandsons of one of the most memorable

Hot Rod Legends in all history. That engine was pretty hefty anyway,

but it was ready made for fantastic increases in power and accel-

eration. Also, when Ford and GM try to make bare bones basic

vehicles, the response is ho hum. The PT-Cruisers were butt ugly

and they had quite a few dealers laughing all the way to the bank.

Does the United States really think that Fiat is going to do anything

for Chrysler but strip it of all assets and take the money and run.

Fiat! The Europeans don't like it because of its crappy poor quality.

To team Fiat up with Chrysler is a major insult to Chrysler and Amer-

icans. Even Italy is not thrilled with Fiat.

Please US government, reconsider, there has to be some other way.