Fiat buys remaining 41% of Chrysler

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LazyPrizm

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Reuters article

Quote:
Fiat will acquire the 41.46 percent stake in Chrysler from a retiree healthcare trust affiliated with the United Auto Workers union, which will receive $3.65 billion in cash for its stake. Additionally, once the deal closes, Chrysler has committed to giving the trust an additional $700 million.
[...]
Chrysler will contribute $1.9 billion in cash, while Fiat will put up $1.75 billion to buy out the trust, which is known as the VEBA, both companies said in separate news releases.


Sounds like good news for the union pension and Fiat (w/ Chrysler ponying up the majority of the cost).

Can we start referring to Chrysler as a foreign-owned car company with American facilities? (more importantly can we stop seeing these dumb Ron Burgundy ads?)
 
It is good news for Fiat, who wanted to buy that part of Chrysler they didn't own and didn't want the UAW to launch an IPO.
Chrysler hasn't been an American company since the Germans bought it for real money, ran it into the ground and gave it away at an FAR price.
They sold it to a Canadian group for pennies, who in turn flipped it to the Italians at a nice profit.
 
Surely this is positive news as some money can be invested in new models?

Who cares who owns the shares, the company still employs plenty of people in the US
 
Originally Posted By: bigjl
Surely this is positive news as some money can be invested in new models?

Who cares who owns the shares, the company still employs plenty of people in the US


But! But! That's not how capatilism works!
 
Originally Posted By: bigjl
Surely this is positive news as some money can be invested in new models?

Who cares who owns the shares, the company still employs plenty of people in the US
Do you use the same logic with transplants such as Honda or Toyota manufactured in US?
 
Originally Posted By: Vikas
Originally Posted By: bigjl
Surely this is positive news as some money can be invested in new models?

Who cares who owns the shares, the company still employs plenty of people in the US
Do you use the same logic with transplants such as Honda or Toyota manufactured in US?


So your issue is that every share is no longer owned by somebody from the good ol US of A?

That is a very narrow minded opinion.

Don't buy "foreign products" if it makes you happy.
 
Originally Posted By: rshaw125
Any mention of the $1.3 billion+ the taxpayer is still owed??
Thought not.


Chrysler paid the US and Canadian governments in full for the bail out loans long ago. 7.6 Billion in total and paid off years early. Also, for Fiat to buy Chrysler entirely I believe the terms of those loans stated they had to be paid in full before they could buy the entire company. Ergo buying up all of Chrysler means the loans are fully paid.
 
Last edited:
Originally Posted By: bigjl
Originally Posted By: Vikas
Originally Posted By: bigjl
Surely this is positive news as some money can be invested in new models?

Who cares who owns the shares, the company still employs plenty of people in the US
Do you use the same logic with transplants such as Honda or Toyota manufactured in US?


So your issue is that every share is no longer owned by somebody from the good ol US of A?

That is a very narrow minded opinion.

Don't buy "foreign products" if it makes you happy.



Go ahead and try not to buy any foreign made products...I dare you...nothing is made in this country anymore...even pet food is outsourced...it's no wonder our economy is so bad!
 
Originally Posted By: NHHEMI
Originally Posted By: rshaw125
Any mention of the $1.3 billion+ the taxpayer is still owed??
Thought not.


Chrysler paid the US and Canadian governments in full for the bail out loans long ago. 7.6 Billion in total and paid off years early. Also, for Fiat to buy Chrysler entirely I believe the terms of those loans stated they had to be paid in full before they could buy the entire company. Ergo buying up all of Chrysler means the loans are fully paid.

How about the bondholders who were skipped in the unique sweetheart deal the UAW, Chrysler and the Federal Govt negotiated?

Unless the bondholders are made whole, then Chrysler has not paid their debts.
 
Originally Posted By: zzyzzx
Fiat will most likely end up selling it to somebody else eventually anyway.

I picked Tata Motors in another thread.
wink.gif
 
Originally Posted By: Garak
Originally Posted By: zzyzzx
Fiat will most likely end up selling it to somebody else eventually anyway.

I picked Tata Motors in another thread.
wink.gif


antiqueshell's head would explode
 
Originally Posted By: javacontour
Originally Posted By: NHHEMI
Originally Posted By: rshaw125
Any mention of the $1.3 billion+ the taxpayer is still owed??
Thought not.


Chrysler paid the US and Canadian governments in full for the bail out loans long ago. 7.6 Billion in total and paid off years early. Also, for Fiat to buy Chrysler entirely I believe the terms of those loans stated they had to be paid in full before they could buy the entire company. Ergo buying up all of Chrysler means the loans are fully paid.

How about the bondholders who were skipped in the unique sweetheart deal the UAW, Chrysler and the Federal Govt negotiated?

Unless the bondholders are made whole, then Chrysler has not paid their debts.


I was commenting on the other member's claims the government( tax payers )hadn't been paid in full. My response was accurate and I let it stand.
 
Originally Posted By: NHHEMI
Originally Posted By: rshaw125
Any mention of the $1.3 billion+ the taxpayer is still owed??
Thought not.


Chrysler paid the US and Canadian governments in full for the bail out loans long ago. 7.6 Billion in total and paid off years early. Also, for Fiat to buy Chrysler entirely I believe the terms of those loans stated they had to be paid in full before they could buy the entire company. Ergo buying up all of Chrysler means the loans are fully paid.


Loans may have been paid back but the taxpayer lost $1.3 billion in stock losses. As I said the taxpayer took a bath and should have been paid in the recent 'deal' to Fiat.
 
Last edited:
Originally Posted By: NHHEMI
Originally Posted By: javacontour
Originally Posted By: NHHEMI
Originally Posted By: rshaw125
Any mention of the $1.3 billion+ the taxpayer is still owed??
Thought not.


Chrysler paid the US and Canadian governments in full for the bail out loans long ago. 7.6 Billion in total and paid off years early. Also, for Fiat to buy Chrysler entirely I believe the terms of those loans stated they had to be paid in full before they could buy the entire company. Ergo buying up all of Chrysler means the loans are fully paid.

How about the bondholders who were skipped in the unique sweetheart deal the UAW, Chrysler and the Federal Govt negotiated?

Unless the bondholders are made whole, then Chrysler has not paid their debts.


I was commenting on the other member's claims the government( tax payers )hadn't been paid in full. My response was accurate and I let it stand.


I suggest that equating government with taxpayers is a stretch. I contend the government got paid, but many taxpayers got the shaft in the deal.
 
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