Bankrupt Auto Manufacturers

papa2 · 04-30-2009, 10:42 PM

With Chrysler filing for Chapter 11 bankruptcy this seems like a good question. Â*GM may not be far behind. Â*No matter how this turns out, at a minimum it appears as though dealer networks will be severely cut. Â*

My vote is maybe. Â*Chapter 11 is basically reorganization. Â*In Chrysler's case I'd have to take a hard look at Fiat, the reported future owner. Â*Edited by: papa2

Chuck N. Wined · 05-01-2009, 12:00 AM

Good question! We actually bought a new PT Cruiser (we just love any kind of Cruiser

) in December. We bought it knowing full well that they were no longer going to be manufactured and that Chrysler may go into backruptcy in the near future. We got such an incredible deal that I figured I could pay for most any repair "out of pocket" if Chrysler completely disappeared and I would still be dollars ahead. It actually cost me less than the first new car I ever bought (in 1993). I do think the "big three" will survive. Don't know what they will look like, but I do think they will pull through.

Lonnie

seabee · 05-01-2009, 12:28 AM

Lonnie, I am glad that you received such a good deal. Perhaps you should bank the saving to help pay your taxes that this bailout is costing all of us. this move will dearly cost the "mom and pop" shops that make parts for the industry. I amcertainly glad that I do not own a bussiness and ust go ouyt of bussiness....where would my "bailout" funds com from?

Walt

fhenn · 05-01-2009, 12:29 AM

I agree that the big three will survive. Part of this was there own making rolling over a lot of Neg equity,Some of it the Government (Federal State Local) and the Bank also with there business plans.

scott · 05-01-2009, 01:11 AM

I say let them fail!

They did this to themselves by being greedy. NO CEO is worth millions per year. And since when can a job that requires no college education pay $50 an hour? Don't get me wrong I'm a diehard GM fan that currently has 2 of them setting in the garage, but I am not in favor of spending tax money to help a few companies who have been mis-managed. By the way, does Fiat make anything in a 3/4 ton? Maybe a diesel?

Edited by: scott

HEH458 · 05-01-2009, 01:35 AM

My concern since the government is giving GM and Chrysler bailout money and firing CEO's, is how long will it be before they start telling them what type vehicles they can or cannot build. That probably does not look good for pickups. Smart Cars won't pull a rv.

geondebi · 05-01-2009, 07:36 AM

I am happy to see Ford has taken NO BAIL OUT money and does not need the government to do warranty work and ensure value is high at trade in. So I guess they are doing things right for now and will not be under the thumb of Obama.

spinella · 05-01-2009, 08:42 AM

Quote:

Originally Posted by geondebi

I am happy to see Ford has taken NO BAIL OUT money and does not need the government to do warranty work and ensure value is high at trade in. So I guess they are doing things right for now and will not be under the thumb of Obama.

AMEN BROTHER...AMEN.

Chrisnan23 · 05-01-2009, 10:10 AM

Fiat will not own the company, 55%UAW, 35% Fiat, 10% Government. The make up of the board and the CEO will tell what direction it will go.

papa2 · 05-01-2009, 10:53 AM

^^^
good point Chris. Â*sorry, I figured the only one at the table with automobile manufacturing management experience was Fiat. Â*

Thanks to most of you for keeping politics and political views out of the discussion. Â*The Ford digs are expected, but as Yogi Berra once said "It ain't over until it's over". Â*

I'm not sure the poll really tells us much (yes, I posted it and I'm saying it any way) but it's interesting to note that those who would buy whether the manufacturer was in bankruptcy is 2 to 1 saying yes. Â*That means that in spite of political affiliation or in spite of recent government financial decisions, or perhaps because of them, we are OPTIMISTIC about the future of automobile manufacturing. Â*Extrapolating, this indicates that most of us are optimistic about the future. Â*As Teddy Roosevelt may have said it, "Bully".

Edited by: papa2

Chrisnan23 · 05-01-2009, 01:45 PM

Yes indeed, "BULLY" The economy is tuning around. Forget Wall street look at what is going on on main street. The real people are doing what they need to to survive. And we will.

Hunter11 · 05-02-2009, 12:25 PM

I don't see the UAW being majority owner.

**Lloyd** · 05-02-2009, 12:42 PM

I was under the assumption the government had to be payed back before Fiat got their share.

spinella · 05-02-2009, 01:21 PM

f-i-a-t fix it again tony. my timing might be off..but i think its funny.

jjustman · 05-02-2009, 02:57 PM

I'm keeping politics and political views out this discussion. I have no statement to make to make on this farce!!

HEH458 · 05-03-2009, 01:53 AM

On paper, it really does not matter how it looks as far as who owns what percentage. GM and Chrysler took bailout money and now both will probably be filing bankruptcy. Once they took the money, they now answer to the government ( ask Wagner) and the government is also who makes the rules under bankruptcy. I only point this out because I'm concerned about the future for rv's. It's no secret how most government feels about gas guzzling/high emission vehicles.Even with ULSD andthe new emissions on the new trucks, the perception is they are bad for the environment.

Chrisnan23 · 05-03-2009, 04:02 AM

The other problem I see with the government and RV's is that the government does not want a mobile society. They want to know where you are at all times.

As far as the ownership of Chrysler, the UAW has 55% of the stock due to the agreement on retirement Fiat will purchase up to 35% to start and the government has 10% The government gets to put 4 on the board, Fiat will run the comany and the UAW gets to put one on the board. The UAW will try to sell their stock as soon as they can make at least the price it was valued at for the retirement fund.

The government doesn't want to run a car company, they want the finacials (much more control that way).

HEH458 · 05-03-2009, 04:25 AM

Chris, I'm not sure about the breakdown but all I'm trying to express is what you said in your last sentence. I'm real concerned about our rv lifestyle and the effect all of this is going to have on it. I told my wife the other day (this is just my opinion) that I would not be surprised if eventually there is a luxury tax on rv's.

papa2 · 05-03-2009, 05:25 AM

Quote:

Originally Posted by HEH458

Chris, I'm not sure about the breakdown but all I'm trying to express is what you said in your last sentence.Â* I'm real concerned about our rv lifestyle and the effect all of this is going to have on it.Â* I told my wife the other day (this is just my opinion) that I would not be surprised if eventually there is a luxury tax on rv's.

I think this is a given. Â*When is the question.

Chrisnan23 · 05-03-2009, 05:48 AM

Now more than ever, I beleive, that any group or activity that makes up less than 35% of the voting population is in grave danger of being taxed to an extreme degree to pay for things totally unrelated. Ahh soap boxes sorry.

Yes a luxury tax is most likely coming as is a GPS module for your car so they can tax you for the miles driven not the gallons used.

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