Myth #1 – Fiat bought Chrysler.
Fiat paid nothing for Chrysler’s assets – so nothing was purhcased. As every consumer knows, in order to have a purchase “cash” or something of “value” must change hands. Nothing “left” Fiats hands, nothing of value was transferred from the Fiat balance sheet to the Chrysler balance sheet. You will read the following statement in Obama’s fawning main street media news accounts “The Italian automaker won’t put any money into the deal but will give Chrysler billions worth of small car and engine technology.” http://news.yahoo.com/s/ap/20090610/ap_on_bi_ge/us_chrysler_bankruptcy
This is simply a dishonest spin on the facts – there is no Chrysler – it is gone and the secured debt holders, including 100’000’s of retireees whose pension funds disppeared as part of this “gifting” are the ones who are paying the price. Fiat transferred nothing to anyone. Fiat already owned this “small engine technology”, Fiat is keeping this technology all to itself. CHRYSLER IS GONE, FIAT NOW OWNS ALL OF THE NOW DEFUNCT CHRSYLER’S GOOD ASSETS – for free. Thank you American Taxpayer. What a plan – What politics. What BS.
In his rush to “gift” Chryslere to Fiat, Obama has trampled American contract law and the Constitution, all at taxpayer expense. Wait till his supporters, the Teachers Unions and the like, who find out their retirement investments, placed in “secured Chrysler Bonds” are now worthless. $100s of millions of doillars of of hard working american’s lifetime savings, gone, in what is now worthless paper. Paper that was, until the Obama administration, a secure or “secured investmant”. He talks about “sticking the rich” all the time – but anyone who thinks its OK to stick the “rich” will stick the middle class too ……… Your hard earned money is the nothing more than a “revenue stream” to the Democrats –
Fiat has the small car technology that will save Chrysler.
Unlikely, Fiat is having problems saving Fiat.
Oh, you didn’t know Fiat is on the way to it’s own bankruptcy? Thank the American press for your ignorance.
There was a business reason Fiat had no presence in the US and had beed eclipsed by Hundai, Kia and Honda and Toyota all the other car companies of the world.
They have bad product. Very bad product.
Chrysler is gone. There is nothing to save. The question is “Will Fiat small engine technology save Fiat and provide work to former Chrysler workers?”. The answer, probably not and if it does the work won’t last long, but the gift of Chrslers remaining assets, which Fiat can liquiidate to pay it’s own bills, may buy Fiat some additional time for Fiat’s Italian workers at American taxpayer expense.
That is how the European stock market is betting. Untilmately, the additional time Obama’s “gifting” buys Fiat will be wasted because Fiat, like Chrysler, refuses to change its business model.
In August 2008 Fiat was worth $18.9 Billion US dollars, or $10.63 per share (euros/share) http://www.bloomberg.com/apps/news?pid=20601085&sid=a8rWnBvh8pvM&refer=europe .
In March 2009, before Obama announced his plan to gift Chrysler’s assets to Fiat’s value had fallen 75%, the creditors were at the door adn bankruptcy loomed in the immediate future. Prior to Obama’s announcemnent to “gift Fiat” Chrsyler’s good assets, Fiat was worth had fallen to a total of 2.5 Billion or $3.75 (euros) per share. http://www.advfn.com/quote_Fiat_BIT_F.html
Fiat’s auto sales have not rebounded, nor has Fiat’s business future brightened. The short term spike in Fiat stock price is due solely to Obama’s unprecendented gift of Chrysler’s good assets. Fiat will, in the not too distant future, begin to liquidate those assests to pay Fiat bills while those holding the original Chrysler debt go unpaid. In a way it reminds me of the mortgage mess, give something away for free, fraudlently call it an investment and stick the taxpayers with the bill.
With the completion of the “gifting” of Chrysler to Fiat, Fiat will need to follow US Government Guidelines on executive compensation!
You are kidding right? Why are you stilling buying into these Obama scams? Read, “Fiat planning to avoid cap on executive pay by Justin Hyde and Greg Gardner,The Associated Press. http://www.mlive.com/business/index.ssf/2009/05/chrysler_fiat_planning_to_avoi.html
The UAW got a good deal – they Own 55% of the “New Chrysler”
Well the UAW did better than US law would have allowed without the Obama Administration interference in the bankruptcy proceeding, moving unsecured creditors ahead of secured creditors in a bankruptcy proceeding, however, the UAW didn’t receive any “real assets”, they will only receive “stock” in the new Fiat controlled entity. Fiat is still free to liquidate the remaining “good assets” from the old Chrysler and leave the UAW holding wortless paper, the same way the secured creditors good screwed by Obama in the just concluded Chrysler Bankruptcy.
Welcome to the new world where contract law amd bankruptcy law are meaningless …….. where “prepackaged” means “we make up the rules as we go along” ……
Oh, are your asking how I came up with the 24 months before Chrysler disappears completely? Simple, check out Fiat’s cash burn to cash reserves, without adding in any operating expenses for the continuation of the Chrysler operations ………. then add 6 months of deficit spending by Fiat management. You can count on one thing – the Italian Government won’t sepnd a cent on the American component of Fiat and the American public will not allow the bailout of an Italian Car company….. 24 months and counting – do you want to bet the under or the over ……….
What will happen to the 100 Billion Dollars of American Taxpayer money thrown down the rathole on this deal – over $3500 for every American alive today, man, women and child, old and young alike ………… $3,500
Say Ciao, Saluto, Arreviderchi baby …. it’s gone, the money is long gone ….. and soon the the last of the Chrysler jobs will follow.
Smile, it’s just politics baby. You know CHANGE …. the CHANGE you voted for ………… YES WE CAN … YES WE CAN …. YES WE CAN
Filed under: Barack Obama, Chrysler Bankruptcy, Chrysler LLC Tagged: | Fiat Takes Over Chrysler Asset - GOODBYE CHRYLSER, Fiat Takes Over Chrysler's Good Assets - Next: Fiat To Liquidate Chrsyler Assets, Obama "Gifts" Chrysler To Fiat