How did we get here?

[Coronita]

SDR, this bailout of Chrysler is just full of ironies. And it’s really quite disgusting…

Some examples

#1)UAW will be given a good percentage of Chrysler without voting rights…..The irony is that the UAW union chief says the first thing he wants to do is sell Chrysler stock..

http://www.msnbc.msn.com/id/30568354/

#2)The Chrysler bankruptcy is proceeding and skirting how typically the pecking order of creditors. Although Obama is painting an “evil” portrait of those objecting the creditors who object to this hurried fiat deal and the terms of the bonds payments, this “deal”

a) isn’t really an open bid to get the best possible price

b) Senior creditors included institutions that DID NOT receive TARP, but yet the government is trying to strong arm them into accepting 30cents on the dollar (they’re asking for 60)…and this fiat deal is going through first rewards more junior creditors than senior, which is disturbing imho

http://www.autoblog.com/2009/05/04/chrysler-creditors-continue-to-object-claim-death-threats/

http://www.reuters.com/article/GCA-autos/idUSTRE54016D20090501

Yet notice how obama blasted those creditors for not accepting the government’s strong arm attempt.

http://www.huffingtonpost.com/2009/04/30/obama-blasts-hedge-funds-_n_193784.html

#3 Chrysler is now forcing the fiat deal to go throw by throwing in a poison pill if the deal with fiat falls apart… $35 million to be exact.

http://www.autoblog.com/2009/05/05/chrysler-pursuing-clause-to-award-fiat-35-million-if-deal-falls/

#4 Chrysler has no plans on paying that $4.5 billion back that taxpayers loaned to them.

http://www.autoblog.com/2009/05/05/chrysler-unlikely-to-pay-back-most-recent-4-5-billion-govt-loa/

#5 BUT the biggest irony is, after all said and done….despite all the flag waving and patriotism about “buying american”… In the very end, after this deal, buying a “Chrysler” is no longer buying an “american” car. Fiat will own the controlling stake. Fiat already has plans to put it’s lineup in the U.S. And it’s questionable what Chrysler vehicles will remain to be produced. Chrysler is already going to be parting the factories that make the Sebring/Stratus/Ram truck/Viper.

A good portion of profits of this new company (if any) will go overseas. True, this will save some american jobs…But this completely shoots down people who argue that buying a toyota/honda made in the U.S. is not as “american” because money is still sent to japan.

#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

I really was hoping the Chrysler deal would have fallen apart. It’s one big expenditure, questionable whether this arrangement will produce profits, and regardless, we taxpayers aren’t going to get paid back for this.

The only thing I’m looking forward too is when Wall Street give Obama the ole finger in the next election.

[Coronita]

BTW: I hope none of you still have any GM common shares….Aside from seeing a 1:100 reverse split, you might also get wiped out.

After all said and done with the US gov possibly being the biggest owner, the existing GM shareholder’s stake would be 1%

http://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm?postversion=2009050519

GM shareholders may get wiped out
Embattled automaker will issue 60 billion new shares in bid to pay debt.

* GM shareholders may get wiped out
* GM to resume union talks this week
* Chrysler won’t repay bailout money
* GMAC posts $675 million loss
* Chrysler seeking quick fix for bankruptcy

DETROIT (Reuters) — General Motors Corp. Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM (GM, Fortune 500), the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM’s shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM’s stock investors with just 1% of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM’s restructuring moves forward as described.

Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.

Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM’s existing shareholders would see their stake in the 100-year-old automaker all but wiped out.

The automaker said it expected to draw another $2.6 billion from the U.S. Treasury before a June 1 deadline set by the Obama administration for it to reach agreements with all of its key stakeholders.

That borrowing would take GM’s debt to the U.S. government to $18 billion, and the automaker said it expected to have to borrow a total of nearly $27 billion.

[Coronita]

BTW: I hope none of you still have any GM common shares….Aside from seeing a 1:100 reverse split, you might also get wiped out.

After all said and done with the US gov possibly being the biggest owner, the existing GM shareholder’s stake would be 1%

http://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm?postversion=2009050519

GM shareholders may get wiped out
Embattled automaker will issue 60 billion new shares in bid to pay debt.

* GM shareholders may get wiped out
* GM to resume union talks this week
* Chrysler won’t repay bailout money
* GMAC posts $675 million loss
* Chrysler seeking quick fix for bankruptcy

DETROIT (Reuters) — General Motors Corp. Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM (GM, Fortune 500), the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM’s shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM’s stock investors with just 1% of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM’s restructuring moves forward as described.

Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.

Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM’s existing shareholders would see their stake in the 100-year-old automaker all but wiped out.

The automaker said it expected to draw another $2.6 billion from the U.S. Treasury before a June 1 deadline set by the Obama administration for it to reach agreements with all of its key stakeholders.

That borrowing would take GM’s debt to the U.S. government to $18 billion, and the automaker said it expected to have to borrow a total of nearly $27 billion.

[Coronita]

BTW: I hope none of you still have any GM common shares….Aside from seeing a 1:100 reverse split, you might also get wiped out.

After all said and done with the US gov possibly being the biggest owner, the existing GM shareholder’s stake would be 1%

http://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm?postversion=2009050519

GM shareholders may get wiped out
Embattled automaker will issue 60 billion new shares in bid to pay debt.

* GM shareholders may get wiped out
* GM to resume union talks this week
* Chrysler won’t repay bailout money
* GMAC posts $675 million loss
* Chrysler seeking quick fix for bankruptcy

DETROIT (Reuters) — General Motors Corp. Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM (GM, Fortune 500), the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM’s shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM’s stock investors with just 1% of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM’s restructuring moves forward as described.

Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.

Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM’s existing shareholders would see their stake in the 100-year-old automaker all but wiped out.

The automaker said it expected to draw another $2.6 billion from the U.S. Treasury before a June 1 deadline set by the Obama administration for it to reach agreements with all of its key stakeholders.

That borrowing would take GM’s debt to the U.S. government to $18 billion, and the automaker said it expected to have to borrow a total of nearly $27 billion.

[Coronita]

BTW: I hope none of you still have any GM common shares….Aside from seeing a 1:100 reverse split, you might also get wiped out.

After all said and done with the US gov possibly being the biggest owner, the existing GM shareholder’s stake would be 1%

http://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm?postversion=2009050519

GM shareholders may get wiped out
Embattled automaker will issue 60 billion new shares in bid to pay debt.

* GM shareholders may get wiped out
* GM to resume union talks this week
* Chrysler won’t repay bailout money
* GMAC posts $675 million loss
* Chrysler seeking quick fix for bankruptcy

DETROIT (Reuters) — General Motors Corp. Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM (GM, Fortune 500), the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM’s shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM’s stock investors with just 1% of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM’s restructuring moves forward as described.

Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.

Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM’s existing shareholders would see their stake in the 100-year-old automaker all but wiped out.

The automaker said it expected to draw another $2.6 billion from the U.S. Treasury before a June 1 deadline set by the Obama administration for it to reach agreements with all of its key stakeholders.

That borrowing would take GM’s debt to the U.S. government to $18 billion, and the automaker said it expected to have to borrow a total of nearly $27 billion.

[Coronita]

BTW: I hope none of you still have any GM common shares….Aside from seeing a 1:100 reverse split, you might also get wiped out.

After all said and done with the US gov possibly being the biggest owner, the existing GM shareholder’s stake would be 1%

http://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm?postversion=2009050519

GM shareholders may get wiped out
Embattled automaker will issue 60 billion new shares in bid to pay debt.

* GM shareholders may get wiped out
* GM to resume union talks this week
* Chrysler won’t repay bailout money
* GMAC posts $675 million loss
* Chrysler seeking quick fix for bankruptcy

DETROIT (Reuters) — General Motors Corp. Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM (GM, Fortune 500), the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM’s shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM’s stock investors with just 1% of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM’s restructuring moves forward as described.

Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.

Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM’s existing shareholders would see their stake in the 100-year-old automaker all but wiped out.

The automaker said it expected to draw another $2.6 billion from the U.S. Treasury before a June 1 deadline set by the Obama administration for it to reach agreements with all of its key stakeholders.

That borrowing would take GM’s debt to the U.S. government to $18 billion, and the automaker said it expected to have to borrow a total of nearly $27 billion.

[jpinpb]

[quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)

[jpinpb]

[quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)

[jpinpb]

[quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)

[jpinpb]

[quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)

[jpinpb]

[quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)

[Coronita]

[quote=jpinpb][quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)[/quote]

Ahem, and check out Ferrari’s reliability record (at least the older ones…Not to mention how long it takes to get a part if you need to)…Well, I don’t consider owners of Ferrari’s to be concerned about reliability…

The rest of Fiat’s product line for some of us more humble roots however still stink in terms of reliability

🙂

[Coronita]

[quote=jpinpb][quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)[/quote]

Ahem, and check out Ferrari’s reliability record (at least the older ones…Not to mention how long it takes to get a part if you need to)…Well, I don’t consider owners of Ferrari’s to be concerned about reliability…

The rest of Fiat’s product line for some of us more humble roots however still stink in terms of reliability

🙂

[Coronita]

[quote=jpinpb][quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)[/quote]

Ahem, and check out Ferrari’s reliability record (at least the older ones…Not to mention how long it takes to get a part if you need to)…Well, I don’t consider owners of Ferrari’s to be concerned about reliability…

The rest of Fiat’s product line for some of us more humble roots however still stink in terms of reliability

🙂

[Coronita]

[quote=jpinpb][quote=flu]
#6 With this merger, you’ll have Fiat (which historically produces unreliable cars) merging with Chrysler (which also historically produces unreliable cars) together that most likely will eventually will produce a hell of a lot of unreliable cars.

[/quote]

Ahem. Fiat actually makes Ferraris (ok, ok, not mass produced, but nevertheless, they make them)[/quote]

Ahem, and check out Ferrari’s reliability record (at least the older ones…Not to mention how long it takes to get a part if you need to)…Well, I don’t consider owners of Ferrari’s to be concerned about reliability…

The rest of Fiat’s product line for some of us more humble roots however still stink in terms of reliability

🙂

[Author]

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