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View Full Version : Obama Obama only lost $1.3 Billion of your money in Chrysler


HonestChieffan
07-21-2011, 03:47 PM
http://www.msnbc.msn.com/id/43843822/ns/business-autos/


Super Duper, time for a celebration we only lost $1.3 Bil. Now owned by FIAT. ( Fix It Again Tomorrow)

US government ends Chrysler investment

By CHRISTOPHER S. RUGABER


WASHINGTON The Treasury Department said Thursday it has exited its investment in Chrysler LLC after Italian automaker Fiat SpA purchased the U.S. government's remaining holdings in the auto company.

Fiat paid $560 million to the Treasury Department for the government's 98,000 shares. Fiat has run the company since it emerged from bankruptcy protection in June 2009.


Treasury provided a total of $12.5 billion to Chrysler and its financing arm after the recession hampered auto sales and sent Chrysler and General Motors to the brink of collapse. The funds came from the government's $700 billion bank bailout fund.

Since then, $11.2 billion of the assistance has been repaid, Treasury says. Chrysler repaid $5.1 billion in loans from the government in May. Treasury said it likely won't recover the remaining $1.3 billion.

Also Thursday, the Canadian federal and Ontario governments announced that they have sold their remaining stakes in Chrysler to Fiat for $140 million. The money is the final repayment of Canadian government loans that were given to the U.S. automaker two years ago.

The purchase of the U.S. and Canadian governments' stakes gives Fiat 53.5 percent ownership of Chrysler. That's likely to rise to 57 percent before the end of the year when Chrysler begins producing a 40 mpg small car in the U.S.

Chrysler has made a remarkable turnaround from two years ago, when it was rescued by the government.

The company earned net income of $116 million in the first quarter and is forecasting 2011 earnings of $200 million to $500 million. Under the leadership of Fiat CEO Sergio Marchionne, the company has cut costs and revived its sales by refurbishing most of its lineup of Jeep, Chrysler, Dodge and Ram vehicles.

Its sales rose 30 percent in June compared to the previous year.

Fiat received a 20 percent stake in Chrysler after the bankruptcy in exchange for management expertise and technology. The Italian automaker has gradually raised its stake by meeting benchmarks set by the government.

mlyonsd
07-21-2011, 03:49 PM
Thousands of jobs saved..yada yada yada.......

CoMoChief
07-21-2011, 03:50 PM
And what will the end result of this be? Who will be held accountable? Nobody.....tough shit.

Gotta love the Obama Administration.

blaise
07-21-2011, 03:50 PM
orange, HuffPost link, please?

blaise
07-21-2011, 03:51 PM
Why won't the money be repaid, though? It says they're making a profit, so why not?

ROYC75
07-21-2011, 03:53 PM
Thousands of jobs saved..yada yada yada.......

You beat me to it .......:huh:

alpha_omega
07-21-2011, 03:55 PM
The worst part of all of this...is that 1.3 bil doesn't even sound like that much money anymore.

alnorth
07-21-2011, 04:00 PM
Gotta love the Obama Administration.

Huh?

At least HCF generically blamed the feds rather than Obama. The loan was handed out by Bush.

It probably saved a lot of jobs, and we can debate whether it was a good idea or not, but Obama didn't give them the money.

alnorth
07-21-2011, 04:12 PM
Why won't the money be repaid, though? It says they're making a profit, so why not?

Its apparently weirdly complicated. Most of the loan was an outright loan, and a small portion of it was a bunch of stock. (which allowed us to fire management, etc)

Chrysler then went into bankruptcy court in 2009. A bankruptcy judge split the company up into two companies: A (healthy) "new chrysler" with most of the assets and a decent chunk of the debt, and a (sick, nearly worthless) "old chrysler" with few assets and all the rest of the debt. Our shares were also exchanged for "new chrysler" shares.

The "new chrysler" paid us all the money they owed us. New Chrysler, the one now making all the profit, no longer owes us a dime.

"Old Chrysler" paid some of its debt back, but it is now basically worthless, and it is "old chrysler" that still owes us $1.3B.

Rather than sit on our stock and optimistically hope we could get our money back someday if the stock price goes up, we just decided to sell out to Fiat, cutting our losses and letting them have the company.

Cave Johnson
07-21-2011, 04:14 PM
Why won't the money be repaid, though? It says they're making a profit, so why not?

A rush to get the gub'mt out of private industry, no doubt.

alnorth
07-21-2011, 04:18 PM
At least HCF generically blamed the feds rather than Obama. The loan was handed out by Bush.

Oh, never mind. Missed the thread title.

HonestChieffan
07-21-2011, 05:02 PM
And the stock was sold by Obama thus the loss was incurred by this administration. Unless GWB is the puppetmaster behind the administration.

Chief Roundup
07-21-2011, 05:12 PM
Bush made the original mistake in bailing those companies out. They should of just let GM, Chrysler, AIG and so on be bought out for pennies on the dollar like what would happen to other businesses.

Bump
07-21-2011, 05:37 PM
Why won't the money be repaid, though? It says they're making a profit, so why not?

because they don't want to pay it? They want their $20 million bonuses and live in mansions. CEO's of big business do have 100% control of this country, so why would they pay it back?

HonestChieffan
07-21-2011, 05:44 PM
because they don't want to pay it? They want their $20 million bonuses and live in mansions. CEO's of big business do have 100% control of this country, so why would they pay it back?

They will pay it back....in political contributions. Little here and a little there, spread it around. Everybody wins.

blaise
07-21-2011, 05:48 PM
because they don't want to pay it? They want their $20 million bonuses and live in mansions. CEO's of big business do have 100% control of this country, so why would they pay it back?

Why would you blame them? If that's the case they're just doing what they were allowed to do. If you're angry about that you should be directing it to the lenders that gave them cash to do that.

Stewie
07-21-2011, 05:50 PM
They had to sell. Ya know, with all the videos of Obama Chrysler workers smoking pot and drinking beer before they went in and built those quality cars.

Bump
07-21-2011, 06:10 PM
Why would you blame them? If that's the case they're just doing what they were allowed to do. If you're angry about that you should be directing it to the lenders that gave them cash to do that.

I am angry at the idiot who gave them our money. I'm sorry, but they build shit cars that don't last and they just should have gone out of business. Now their CEO's are still giving themselves millions of dollars in bonuses and it's fucking bullshit. Why don't they get the 30% interest rate that the common man gets? It's a fucking corrupt piece of shit world.

Jaric
07-21-2011, 06:25 PM
I am angry at the idiot who gave them our money. I'm sorry, but they build shit cars that don't last and they just should have gone out of business. Now their CEO's are still giving themselves millions of dollars in bonuses and it's ****ing bullshit. Why don't they get the 30% interest rate that the common man gets? It's a ****ing corrupt piece of shit world.

Because they bribed err I mean donated to the right people.