Chrysler forced into bankruptcy

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http://www.freep.com/article/20090607/BU...s+on+bankruptcy
 Quote:
Chrysler executives still hoped to avoid bankruptcy. The UAW had ratified a second round of concessions that froze wages, cut retiree health care benefits and agreed not to strike the company for more than six years. All but a handful of lenders had signed off on the U.S. Treasury's offer of $2 billion to write off $6.9 billion in Chrysler loans. Reluctantly, however, the leaders were recognizing the harsh decision Rattner made weeks earlier: Chrysler was filing for Chapter 11, no matter what. Rattner had met with Ron Kolka, Chrysler's chief financial officer, and told him how it would go. "We need a deal with Fiat today. We were told to pretty much take it," Kolka wrote in an e-mail to Nardelli, Vice Chairman Tom LaSorda and Robert Manzo, a financial consultant Chrysler hired in November. Rattner and his colleague Ron Bloom "will call the union in and tell them what will happen. Then they'll tell the banks, 'Here's the deal: take it or liquidate it.' "
 
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 Originally Posted By: duaneb9729
Its a shame, Chrysler was making money till Damiler took over and robbed it blind
I just finished Lee Iacocca's book "Where Have All the Leaders Gone?". He lends a few pages to this debacle (book was written in 2007). It's a good read, talking about how he had repaid the loan they got from the government early, had a few top selling cars at the time (LHS, Intrepid, Jeep, etc) and Lee decided to retire and hand the reigns over to his second in command (Robert Eaton). Lee was furious over the sale and even more angry that the name was Daimler-Chrysler (even though at the time Chrysler was the larger company). Robert Eaton sold out Chrysler and Daimler pillaged anything of value.
 
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Are they going to have a stupid commercial like GM... "We're not going out of business, we are starting over..." BLAH BLAH BLAH! Stupid GM commercial plays on all stations like every commercial break. How about not spending the $500K+ on a commercial and work on fixing the problems? Would be nice for the tax-payer! ;\)
 
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 Originally Posted By: 2002 Maxima SE
 Originally Posted By: duaneb9729
Its a shame, Chrysler was making money till Damiler took over and robbed it blind
I just finished Lee Iacocca's book "Where Have All the Leaders Gone?". He lends a few pages to this debacle (book was written in 2007). It's a good read, talking about how he had repaid the loan they got from the government early, had a few top selling cars at the time (LHS, Intrepid, Jeep, etc) and Lee decided to retire and hand the reigns over to his second in command (Robert Eaton). Lee was furious over the sale and even more angry that the name was Daimler-Chrysler (even though at the time Chrysler was the larger company). Robert Eaton sold out Chrysler and Daimler pillaged anything of value.
Chrysler has about 18 billion in cash on hand and Schremp from Dumbler Bendz did the "merger of equals to raid the cash" and then proceeded to pillage all the remaining cash from Chrysler. EX 150 JTE engineers had to go down to Alabam to show Dumbler how to design an SUV which woulnt roll over, all the money for the fix was padded on Jeeps books, not Dumblers.
 
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