Union majority stake in Chrysler

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pbm

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....I wonder if the union workers will feel the same way about the co-worker who calls in sick regularly now that they are the owners?????
 
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 Originally Posted By: hone eagle
boggles the mind the ying and yang of it all http://news.google.com/news?pz=1&ned=us&hl=en&btcid=6d4cb7196b16f4c3 here
Latest news blip says the gov will give Chrysler 8 BILLION for bankrupcy costs. Bankrupcy is mainly paperwork. Those lawyers make more money than the CEOs that everybody was complaining about. What are the chances that our elected officials will whip up the public's frenzy about lawyer salary like they did about company CEO salary?
 

JHZR2

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I hope so, I despise lawyers and the lawyers' monopoly more than anything else...
 

Bill in Utah

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Most "officials" are Lawyers. I doubt ANYTHING will happen since they protect their own... I do like that things like this will make sure I NEVER buy another new Chrysler or GM product. EVER... Saves $$ for me...
 

PT1

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The Fiat deal has been approved at all levels except the Hedge funds who wanted a larger percentage than all other participants. This chap 11 will allow the deal to be completed and rid them of the hedge fund guys stoopid demands. Then Chrysler will come back with the same deal as before...minus some bondholders & Wall St. fund managers. The US Govt will give them $4billion to make it through the Chap 11 proceedings and $4 bil once they emerge. This will be very interesting of the bondholders & hedge fund guys don't sue. But I doubt they can if Chrysler is in Chap11. Then the bondholders will get what the Judge gives them and have no recourse to hold anyone hostage.
 
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hone eagle

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 Originally Posted By: pbm
....I wonder if the union workers will feel the same way about the co-worker who calls in sick regularly now that they are the owners?????
Or ask for a raise,and what about transplants/parts plants,do they favour Chrysler in bargining even while representing Ford, GM. read the linq ,I think they would want out as quik as they can.But if the stock doesn't go up?
 

pbm

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 Originally Posted By: PT1
Well, you will have Fiat & the Federal Gov. running a US or used to be a US car company...??
Actually, they were a German owned company for many years. Unless Chrysler products improve dramatically they will fail regardless. The automobile companies need to hire more engineers and less accountants (and lawyers). It would be a long time before I'd buy a new Dodge or Chrysler.
 
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I think gov. owners will mandate they make cars that no one wants. This will make them unviable and we will be right back were we are now in a few years. Also, expect subsidies from gov. to entice people to buy unwanted cars.
 
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 Originally Posted By: pbm
Unless Chrysler products improve dramatically they will fail regardless. The automobile companies need to hire more engineers and less accountants (and lawyers). It would be a long time before I'd buy a new Dodge or Chrysler.
Boy, I hear this a lot and it is truly sad. There is a huge misconception out there about the current lineup of Chrylser vehicles. The vast majority of their line are excellent vehicles. Only a few that are really bad. GOOD: 3rd( 08 ) & 4th( 09+ )Generation Rams Journey Challanger Charger Avenger Sebring 300 Caravan/Town & Country Most Jeeps BAD: Caliber Nitro Durango/Aspen Chrylser could use an economy line car or two I admit, and hopefully the merger with FIAT will bring a couple cars that get 30+ MPG to fill that void and compete with the econo death boxes from other mfg's, but overall Chrysler has some excellent vehicles in their lineup. A couple might be due for an update like the Charger and 300 but overall very good rides. \:\!
 
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If the union owns a large stake in Chrysler then I expect they will care more about getting the work done, and done right. Sounds good to me.
 
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 Originally Posted By: PT1
The Fiat deal has been approved at all levels except the Hedge funds who wanted a larger percentage than all other participants.
I haven't looked at the Chrysler deal. If it's anything like the GM deal, it's terrible for private investors, great for government and unions. This is what the government wants to do with GM: Government: $10B for 50% stake in the new company UAW: $10B in benefit givebacks for 39% stake Bondholders: $28B for 10% stake. The bondholders are getting the shaft, big time. The administration talking point that greedy private investors need to just accept they are having their property stolen is so wrong on many levels. The US is becoming a South American banana republic.
 
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It's pretty idealistic to assume union "ownership" will encourage workers to perform any differently. See: http://news.yahoo.com/s/ap/20090503/ap_on_bi_ge/us_uaw_power;_ylt=An1ESOhC449dqaznLWbAsEayBhIF ""What's happening at Chrysler and GM is not employee ownership in any recognizable way," said Corey Rosen, founder and executive director of the nonprofit National Center for Employee Ownership. "The employees don't own any part of Chrysler or GM, it's the health trust, and they're going to sell that stock as soon as they can. It's more like somebody saying 'I can't pay the money I owe you, so take some stock and you can sell it.'" That's exactly what the union intends to do, its president Ron Gettelfinger said Friday in an interview with National Public Radio. "The VEBA's going to be stressed in order to pay the benefits. So what we will need to do ... is as soon as we possibly can, to start selling these shares," he said.""
 
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 Originally Posted By: BearZDefect
If the union owns a large stake in Chrysler then I expect they will care more about getting the work done, and done right. Sounds good to me.
Unions are good at reducing efficiency, not increasing it.
 
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 Originally Posted By: NHHEMI
Boy, I hear this a lot and it is truly sad. There is a huge misconception out there about the current lineup of Chrylser vehicles. The vast majority of their line are excellent vehicles. Only a few that are really bad. GOOD: 3rd( 08 ) & 4th( 09+ )Generation Rams Journey Challanger Charger Avenger Sebring 300 Caravan/Town & Country Most Jeeps BAD: Caliber Nitro Durango/Aspen
GOOD: 3rd( 08 ) & 4th( 09+ )Generation Rams Journey Challenger 300 Caravan/Town & Country Most Jeeps BAD: Caliber* Nitro Durango/Aspen Avenger Sebring Charger* *Not necessarily bad in the way you think. They are more or less undesirable. Bold = Discontinue ASAP I'm betting Chrysler won't have a Chrysler brand within two years. Dodge, Fiat and Jeep will most likely be it.
 
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 Originally Posted By: PT1
The Fiat deal has been approved at all levels except the Hedge funds who wanted a larger percentage than all other participants. This chap 11 will allow the deal to be completed and rid them of the hedge fund guys stoopid demands. Then Chrysler will come back with the same deal as before...minus some bondholders & Wall St. fund managers. The US Govt will give them $4billion to make it through the Chap 11 proceedings and $4 bil once they emerge. This will be very interesting of the bondholders & hedge fund guys don't sue. But I doubt they can if Chrysler is in Chap11. Then the bondholders will get what the Judge gives them and have no recourse to hold anyone hostage.
Chrysler better not ever try to go back to the bond market to get more capital, because no one in his right mind will ever loan them a cent again. Bankruptcy laws, for the last couple centuries, have established a hierarchy of which creditors get paid first. Obama turned this hierarchy upside down. Chrysler is not the only company that will be hurt. All interest rates on corporate bonds will climb higher than they would otherwise be. The financial advisors who help people planning for retirement and those already retired will strongly recommend that they stay away from corporate bonds. Pension funds and high-grade mutual funds will stay away. Imagine, if you will, the best-managed and most stable company in the world. Let's just pick Proctor & Gamble, for instance... been around for a century, always makes a profit, always pays its debts. Even companies like P&G will have to pay much higher rates if they go to the bond markets for capital, thanks to Barack Obama. One other impact -- even more companies will cancel any expansion plans they might have in the US, and will instead direct these investments to their overseas subsidiaries. They will be able to borrow at lower cost, and they will not have to pay the higher taxes and meet the stiffer regulatory burdens being imposed by Obama. So the Chrysler bankruptcy scheme will encourage job creation in other countries at the expense of jobs in the US.
 
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 Quote:
So the Chrysler bankruptcy scheme will encourage job creation in other countries at the expense of jobs in the US.
Yep. It may direct some funds into Treasuries though...
 
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