Chrysler repays loans

[ugonow]

Gol durn it! And all their retirees are not on tax payer healthcare because of the veba... drats. thehill.com/blogs/transportation-report/automobiles/162943-chrysler-repays-government-loans I wuz hoping all those union thugs and their venders would be out of work and the us paying GM retirees healthcare instead of the company funding their retiree healthcare obligations with a stock funded veba like Ford did.

[❤ mollymouser ❤]

Chrysler said it was paying both the initial money the government put up in the controversial auto bailouts, as well as $1.8 billion in interest, six years ahead of schedule. The company borrowed $5.1 billion from the U.S. government and $1.6 billion from Canada.

Isn't paying back the borrowed money a GOOD thing?

[deziloooooo]

May 24, 2011 19:29:18 GMT -5 ugonow said:

Gol durn it! And all their retirees are not on tax payer healthcare because of the veba... drats. thehill.com/blogs/transportation-report/automobiles/162943-chrysler-repays-government-loans I wuz hoping all those union thugs and their venders would be out of work and the us paying GM retirees healthcare instead of the company funding their retiree healthcare obligations with a stock funded veba like Ford did.

Plants are still here, Americans, sub contractors are still here, people are employed , didn't go on extended paid leave, unemployment, still good wages, didn't say great, but good and good is good, and what kind of work does a unemployed auto worker in his 50's have to look forward to if unemployed.

Mr. President..take the credit, let the naysayers brey away...nit pick as they will in their dissapointment, so little care/thought /concern given to possible more American Workers out of work, another basic heavy Industry gone..you done good. ;D

[mmhmm]

Good for Chrysler. Job well done, and honorable. When you borrow money, you pay it back. Like Molly, I consider that a Very Good Thing!

[deziloooooo]

May 24, 2011 20:06:45 GMT -5 ❤ mollymouser ❤ said:

Chrysler said it was paying both the initial money the government put up in the controversial auto bailouts, as well as $1.8 billion in interest, six years ahead of schedule. The company borrowed $5.1 billion from the U.S. government and $1.6 billion from Canada.

Isn't paying back the borrowed money a GOOD thing?

Your on the P@M zone now molly, logic and good sense has little use here.You really want to overseer this group??[sigh}

[❤ mollymouser ❤]

[AgeOfEnlightenmentSCP]

Yeah, well, sort of...

The 'old' Chrysler still owes quite a bit of money to the taxpayers:

www.thetruthaboutcars.com/2011/05/chrysler-celebrates-payback-acknowledges-outstanding-obligations-sort-of/

Chrysler Celebrates “Payback,” Acknowledges Outstanding Obligations (Sort Of)

By Edward Niedermeyer on May 24, 2011

Chrysler's bailout “thank you” event today was long on praise for the redemptive power of its government bailout and short on talk of remaining challenges, but at least one important fact was acknowledged: this highly-touted “payback” was only for 85% of the money loaned to Chrysler during the bailout period. Although, to be perfectly accurate, it wasn’t exactly Chrysler who acknowledged the outstanding obligation [the firm avoids any such nuance in its release], as CEO Sergio Marchionne simply stated that

We received confirmation this morning at 10.13 am from Citigroup that Chrysler Group repaid, with interest, by wire transfer to the United States Treasury and by bank transfer to the Canadian government, every penny that had been loaned less than two years ago. [Emphasis added]

That last bit was the important part… as in, the part that was most often repeated in Chrysler’s presentation and in subsequent media reports. But it’s not the whole story…

It was ultimately up to Ron Bloom, the White House’s defacto “car czar” to admit that Chrysler’s “payback” amounted to only 85% of the “total money loaned to Chrysler.” That math works out to the conclusion that Chrysler failed to pay back about $2b… which is as technically true as Marchionne’s “every penny that had been loaned less than two years ago” line. It does, however, fail to account (again) for the $1.9b Debtor-in-Posession “loan” which financed Chrysler during bankruptcy and was conveniently left to die with the remains of “Old Chrysler.” Nor does it account for the $1.5b loaned to Chrysler’s suppliers to keep them afloat amidst the bailout chaos. Meanwhile, the $1.9b Chrysler that Bloom admits Chrysler still “owes” the taxpayers is covered by a 6.6% stake in Chrysler’s equity, which isn’t likely to cover that loss when Chrysler eventually launches an IPO… and the DIP loan and supplier aid are irrevocably lost. According to the Treasury’s release:


Treasury committed a total of $12.5 billion to Chrysler under TARP’s Automotive Industry Financing Program (AIFP). With today’s transaction, Chrysler has returned more than $10.6 billion of that amount to taxpayers through principal repayments, interest, and cancelled commitments. Treasury continues to hold a 6.6 percent common equity stake in Chrysler. As previously stated, however, Treasury is unlikely to fully recover its remaining outstanding investment of $1.9 billion in Chrysler.

Add up the outstanding “bridge loan” loss of $1.9b, the “Old Chrysler” DIP loan loss of $1.9b and the supplier aid loss of $1.5b, and the taxpayer’s loss on Chrysler looks to be closer to $5.3b. Add $3.4b of that into the $12.5b bailout bill that Treasury acknowledges, and the total return on the Chrysler bailout appears to be more like 66%, not 85%. Which is pretty damn far from “every penny” no matter how you cut it.

[AgeOfEnlightenmentSCP]

I would criticize the headline, but I guess you didn't say "all" loans...

[buster]

I always wondered why Chrysler even got the loans to begin with. Unlike GM, Chryler's parent company Cerberus and Cerberus' parent company Golden Gate Capital had plenty of money to cover the shortfall.

I guess the taxpayer bailout had better rates...

[Deleted]

OOPS!!!!

detnews.com/article/20110524/MIVIEW/105240374/Payne--SUVs-saved-Chrysler

Last Updated: May 24. 2011 1:02AM
Payne: SUVs saved Chrysler
Henry Payne/ The Michigan View.com
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.
The White House hand-picked Fiat to shepherd Chrysler out of bankruptcy in June, 2009 because of Barack Obama's obsession with remaking Detroit's automakers in the image of their European peers. Convinced that Americans craved small cars to fight the warming scourge, the president demanded Fiat bring its best-selling 500 Eurobox to the States as part of the acquisition deal. Obama was convinced that Fiat could reform the immoral, gas-swigging, SUV-dependent Chrysler.
The exact opposite occurred.
Two years later, the little 500 is about to go on sale in dealer "boutiques" - but it is the resurgence of America's appetite for trucks that has brought Chrysler back from the dead. Chrysler Group reported sales were up 17 percent to 1.1 million vehicles in 2010 on the strength of its wildly popular, redesigned Jeep Grand Cherokee and Dodge Durango SUVs. For CEO Marchionne, the SUVs success in the U.S. market has been a revelation and he is planning to expand the SUV lineup into Europe with Alfa Romeo and Maserati-badged trucks. Marchionne is no starry-eyed green - he has realized that trucks like the Cherokee typically rake in twice the per-vehicle profit of cars (thus the beleaguered company's speedy repayment of U.S. loans).
Chrysler's truck sales - largely ignored by Obama's green media parrots - has also been good to UAW workers as Chrysler's Detroit assembly plant is now at full, three-shift capacity.
But there is one more inconvenient truth: Chrysler has been here before.
After it repaid its 1980s loans under the legendary hand of Lee Iacocca, Chrysler was unable to diversify into smaller vehicles.Today, as the truck boom fades before the specter of $4-a-gallon gas, Chrysler is still heavily dependent on truck sales.
Chrysler is back. But is it just 1980s déjà vu all over again?

[deziloooooo]

May 25, 2011 0:32:09 GMT -5 @krickitt said:

OOPS!!!!

detnews.com/article/20110524/MIVIEW/105240374/Payne--SUVs-saved-Chrysler

Last Updated: May 24. 2011 1:02AM
Payne: SUVs saved Chrysler
Henry Payne/ The Michigan View.com
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.
The White House hand-picked Fiat to shepherd Chrysler out of bankruptcy in June, 2009 because of Barack Obama's obsession with remaking Detroit's automakers in the image of their European peers. Convinced that Americans craved small cars to fight the warming scourge, the president demanded Fiat bring its best-selling 500 Eurobox to the States as part of the acquisition deal. Obama was convinced that Fiat could reform the immoral, gas-swigging, SUV-dependent Chrysler.
The exact opposite occurred.
Two years later, the little 500 is about to go on sale in dealer "boutiques" - but it is the resurgence of America's appetite for trucks that has brought Chrysler back from the dead. Chrysler Group reported sales were up 17 percent to 1.1 million vehicles in 2010 on the strength of its wildly popular, redesigned Jeep Grand Cherokee and Dodge Durango SUVs. For CEO Marchionne, the SUVs success in the U.S. market has been a revelation and he is planning to expand the SUV lineup into Europe with Alfa Romeo and Maserati-badged trucks. Marchionne is no starry-eyed green - he has realized that trucks like the Cherokee typically rake in twice the per-vehicle profit of cars (thus the beleaguered company's speedy repayment of U.S. loans).
Chrysler's truck sales - largely ignored by Obama's green media parrots - has also been good to UAW workers as Chrysler's Detroit assembly plant is now at full, three-shift capacity.
But there is one more inconvenient truth: Chrysler has been here before.
After it repaid its 1980s loans under the legendary hand of Lee Iacocca, Chrysler was unable to diversify into smaller vehicles.Today, as the truck boom fades before the specter of $4-a-gallon gas, Chrysler is still heavily dependent on truck sales.
Chrysler is back. But is it just 1980s déjà vu all over again?

Possible correct , have no idea..my interest in the internal combustion comes down to turn the ignition, put in D, step on the accelerator, steer carefully and drive with in control and safely and go from A to b..all I care about.[ A nice comfortable vehickle too, waxed and washed, important to my feeling good while in it also important when I think about it}

I like this story because, it is a going concern, in the US , employing American workers directly in the plants, indirectly in the sub contractors throughout the country, plants are not empty, paying some taxes to local communities, workers are not out of work and for many of them permanenttly out of the work force because of age, able to earn a fair wage, what ever that is today, not a drain collecting Unemployment and other social services..to me, a good thing.

Thank you for what ever you had to do with this , Mr. President.

[AgeOfEnlightenmentSCP]

May 25, 2011 0:32:09 GMT -5 @krickitt said:

OOPS!!!!

detnews.com/article/20110524/MIVIEW/105240374/Payne--SUVs-saved-Chrysler

Last Updated: May 24. 2011 1:02AM
Payne: SUVs saved Chrysler
Henry Payne/ The Michigan View.com
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.
The White House hand-picked Fiat to shepherd Chrysler out of bankruptcy in June, 2009 because of Barack Obama's obsession with remaking Detroit's automakers in the image of their European peers. Convinced that Americans craved small cars to fight the warming scourge, the president demanded Fiat bring its best-selling 500 Eurobox to the States as part of the acquisition deal. Obama was convinced that Fiat could reform the immoral, gas-swigging, SUV-dependent Chrysler.
The exact opposite occurred.
Two years later, the little 500 is about to go on sale in dealer "boutiques" - but it is the resurgence of America's appetite for trucks that has brought Chrysler back from the dead. Chrysler Group reported sales were up 17 percent to 1.1 million vehicles in 2010 on the strength of its wildly popular, redesigned Jeep Grand Cherokee and Dodge Durango SUVs. For CEO Marchionne, the SUVs success in the U.S. market has been a revelation and he is planning to expand the SUV lineup into Europe with Alfa Romeo and Maserati-badged trucks. Marchionne is no starry-eyed green - he has realized that trucks like the Cherokee typically rake in twice the per-vehicle profit of cars (thus the beleaguered company's speedy repayment of U.S. loans).
Chrysler's truck sales - largely ignored by Obama's green media parrots - has also been good to UAW workers as Chrysler's Detroit assembly plant is now at full, three-shift capacity.
But there is one more inconvenient truth: Chrysler has been here before.
After it repaid its 1980s loans under the legendary hand of Lee Iacocca, Chrysler was unable to diversify into smaller vehicles.Today, as the truck boom fades before the specter of $4-a-gallon gas, Chrysler is still heavily dependent on truck sales.
Chrysler is back. But is it just 1980s déjà vu all over again?

So, in other words the only thing that made the company profitable was rejecting the green agenda and building cars people actually want to buy? Shocking.

[deziloooooo]

May 25, 2011 7:58:38 GMT -5 AgeOfEnlightenmentSCP said:

May 25, 2011 0:32:09 GMT -5 @krickitt said:

OOPS!!!!

detnews.com/article/20110524/MIVIEW/105240374/Payne--SUVs-saved-Chrysler

Last Updated: May 24. 2011 1:02AM
Payne: SUVs saved Chrysler
Henry Payne/ The Michigan View.com
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.
The White House hand-picked Fiat to shepherd Chrysler out of bankruptcy in June, 2009 because of Barack Obama's obsession with remaking Detroit's automakers in the image of their European peers. Convinced that Americans craved small cars to fight the warming scourge, the president demanded Fiat bring its best-selling 500 Eurobox to the States as part of the acquisition deal. Obama was convinced that Fiat could reform the immoral, gas-swigging, SUV-dependent Chrysler.
The exact opposite occurred.
Two years later, the little 500 is about to go on sale in dealer "boutiques" - but it is the resurgence of America's appetite for trucks that has brought Chrysler back from the dead. Chrysler Group reported sales were up 17 percent to 1.1 million vehicles in 2010 on the strength of its wildly popular, redesigned Jeep Grand Cherokee and Dodge Durango SUVs. For CEO Marchionne, the SUVs success in the U.S. market has been a revelation and he is planning to expand the SUV lineup into Europe with Alfa Romeo and Maserati-badged trucks. Marchionne is no starry-eyed green - he has realized that trucks like the Cherokee typically rake in twice the per-vehicle profit of cars (thus the beleaguered company's speedy repayment of U.S. loans).
Chrysler's truck sales - largely ignored by Obama's green media parrots - has also been good to UAW workers as Chrysler's Detroit assembly plant is now at full, three-shift capacity.
But there is one more inconvenient truth: Chrysler has been here before.
After it repaid its 1980s loans under the legendary hand of Lee Iacocca, Chrysler was unable to diversify into smaller vehicles.Today, as the truck boom fades before the specter of $4-a-gallon gas, Chrysler is still heavily dependent on truck sales.
Chrysler is back. But is it just 1980s déjà vu all over again?

So, in other words the only thing that made the company profitable was rejecting the green agenda and building cars people actually want to buy? Shocking.

mmmm, in reading between the lines here, are you actually insinuating you might actually agree with my post above...just unable to say so?

[Savoir Faire-Demogague in NJ]

mmmm, in reading between the lines here, are you actually insinuating you might actually agree with my post above...just unable to say so?

That was not my take-away. What saved Chrysler is that they built big gas guzzling SUVs and trucks. Says so write in your linked article.
Hilariously ironic.

[deziloooooo]

May 25, 2011 11:40:07 GMT -5 Savoir Faire-Demogague in NJ said:

mmmm, in reading between the lines here, are you actually insinuating you might actually agree with my post above...just unable to say so?

That was not my take-away. What saved Chrysler is that they built big gas guzzling SUVs and trucks. Says so write in your linked article.
Hilariously ironic.

I understand your thoughts, it was someone else's lines I was reading between though and possible interpreting.