Skip to comments.SUVs saved Chrysler
Posted on 05/25/2011 7:24:02 AM PDT by safetysign
Chrysler and the White House will celebrate the Detroit icon's $5.9 billion repayment of government loans Tuesday in a ceremony that will be hailed by both sides for the same reason: The government bailout had become a liability for both entities.
In fact, government-free Chrysler is hardly off the debt hook, but is simply refinancing its debt with private rather than public debt-holders. For its part, the U.S. government will still have a 6.6 percent equity stake in Chrysler - but by removing itself as the company's loan shark, the White House can boast of the unpopular bailout's success in returning taxpayer loans 6 years ahead of schedule. That's an important sound-bite in an election year.
But there is one inconvenient truth you won't hear at the Sterling Heights, Mich. ceremony: Chrysler wouldn't be here had it not defied its green White House masters. Chrysler's return to profitability is a direct result of the fabulous success of its SUVs.
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I’d like to find out the terms given by those private debt holders, and whether they truly are private sector.
And gas prices will kill them.
what about their bond holders? didn’t they get the shaft like GMs? Is Chrysler going to take care of them?
One word, JEEP
“Id like to find out the terms given by those private debt holders, and whether they truly are private sector.”
Considering the haircut the previous set of Chrysler bond holders took when Chryler went bankrupt, I would not buy Chrysler bonds, no matter what terms are offered, and I would pull my money out of any mutual fund that invested in Chryler bonds. Fool me once . . .
FIAT better watch out for “The Chrysler Curse”.
When Mercedes Benz bought Chrysler, Mercedes thought they would revamp Chrysler with better quality control, better designed cars and better manufacturing.
But during it’s ownership, Mercedes spent huge amounts of money and spent countless hours trying to turn Chrysler around. All this starting effecting Mercedes ability to produce quality cars.
It went from 1 or 2 in JD Powers down to the bottom.
So instead of turning Chrysler into Mercedes. Mercedes turned into Chrysler.
I thought the K-car, Lee Iacocaa, and the minivan that did that.
Just about every car in the early 80’s chrysler made was a k car. The 600, the lebaron, the new yorker, the aeries.. all K-cars.
When Iacocaa said he wanted to bring back the convertible the designers came up with all sorts of new cars..
Iacocaa replied “just cut the f&^k’n roof off something”
Think jeep. There is also the aspen. They just brought back the durango as well.
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