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SUVs saved Chrysler
Google Groups ^ | 05/24/2011 | Henry Payne

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.

(Excerpt) Read more at groups.google.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: automakers; bailout; obama; suv; unions
Oh the irony.
1 posted on 05/25/2011 7:24:08 AM PDT by safetysign
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To: safetysign

I’d like to find out the terms given by those private debt holders, and whether they truly are private sector.


2 posted on 05/25/2011 7:30:16 AM PDT by agere_contra ("Debt is the foundation of destruction" : Sarah Palin.)
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To: safetysign

And gas prices will kill them.


3 posted on 05/25/2011 7:31:44 AM PDT by bmwcyle (It is Satan's fault)
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To: safetysign

what about their bond holders? didn’t they get the shaft like GMs? Is Chrysler going to take care of them?


4 posted on 05/25/2011 7:44:48 AM PDT by cableguymn
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To: safetysign

One word, JEEP


5 posted on 05/25/2011 7:46:04 AM PDT by Roklok
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To: agere_contra

“I’d 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 . . .


6 posted on 05/25/2011 7:48:00 AM PDT by No Truce With Kings (Ten years on FreeRepublic and counting.)
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To: safetysign

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.


7 posted on 05/25/2011 7:50:36 AM PDT by PanzerKardinal (Some things are so idiotic only an intellectual would believe it.)
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To: safetysign

Durango bump


8 posted on 05/25/2011 7:55:27 AM PDT by ▀udda▀udd (7 days - 7 ways a Guero y Guay Lao >>> with a floating, shifting, ever changing persona.....)
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To: safetysign

I thought the K-car, Lee Iacocaa, and the minivan that did that.


9 posted on 05/25/2011 8:04:47 AM PDT by bigbob
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To: bigbob

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”


10 posted on 05/25/2011 8:26:33 AM PDT by cableguymn
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To: bigbob
I thought the K-car, Lee Iacocaa, and the minivan that did that.
Me too, especially the mini-van.
When I think Chrysler SUVs, I come up with a blank.
11 posted on 05/25/2011 8:52:18 AM PDT by oh8eleven (RVN '67-'68)
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To: oh8eleven

Think jeep. There is also the aspen. They just brought back the durango as well.


12 posted on 05/25/2011 11:12:44 AM PDT by cableguymn
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To: cableguymn
Think jeep
No, and that's my point, I think Chrysler SUV and ... nothing, not even Jeep.
And the Durango was never successful or it wouldn't have taken a two year hiatus.
13 posted on 05/25/2011 11:20:04 AM PDT by oh8eleven (RVN '67-'68)
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