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monsoon

Chrysler is going to bankruptcy court.

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They have been dying for 30 years. Government had to loan them a bunch of money in the 1980s, we got the invention of the mini-Van in return. The Germans bought them in 90s and it almost took down Mercedes-Benz during the episode so they walked away from it. Now it looks as if Chrysler couldn't get the bankers to support it so they are being forced into bankruptcy. (at least this is the story as I type this)

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From what I have read, the banks agreed to the governments proposals for debt reduction. The 40 some odd hedge fund managers refused the deal, hoping for a liquidation. I forsee the gov't steering this bankruptcy and Chrysler will have a marriage with Fiat.

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Chrysler is also getting another $8 billion in tax dollars. There are a number of creditors wanting to liquidate at least part of the company, but it looks like the government will block it and will more or less tell the creditors tough cookies. There is also the argument that if Chrysler agrees to sell the assets, creditors should get first dibs, but the government disagrees and stated that taxpayers should come first. There is talk of a bill being formed in Congress that would essentially state that taxpayers are paid first (and we should be IMO) any money that was invested by the government in that company and then creditors could pick over the leftovers.

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Chysler was doing OK til the Germans took over and looted them. I sure hope FIAT dioes a better job of it (and how about bringing some product to the States, huh, FIAT?).

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Chysler was doing OK til the Germans took over and looted them. I sure hope FIAT dioes a better job of it (and how about bringing some product to the States, huh, FIAT?).

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I sure hope FIAT dioes a better job of it (and how about bringing some product to the States, huh, FIAT?).

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I hope Fiat cleaned up their act. They used to sell cars here in the USA but eventually pulled out of the market in the 80s or early 90s due to their horrible quality. Some of their vehicles were designed in ways they had to self destruct.

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For what it is worth, Fiat today is a lot better than Fiat of yore. Having said that, I still don't think that quality is going to be one of the strong suits of either brand.

What Chrysler gets out of this are platforms. The Fiats and Alfas ill sell here for short bursts and then fade away - they really are not geared for the American market and while they can sell on the cute and sporty factor, thats not what the US market really wants. But Chrysler desperately need a small and mid-sized platform, and this gives it to them. They also get an opening in the world market.

This is really just one piece of the puzzle. But it is an important and significant piece. What really needs to happen now, is that Chrysler starts reinventing itself and tops trying to think of itself as a mid-century american steel company.

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It looks like Chrysler isn't the only thing Fiat is interested in now. Fiat is reportedly in talks to purchase Saab and German brand, Opel, and British brand, Vauxhall, from GM. All three brands are considered by GM to be non-core assets. A sale of these assets could help infuse GM with some cash, dump debts associated with the brands and bring down overall overhead costs. Fiat would then take all the auto assets it purchases and currently owns and spin them into a new company that would be owned mostly by Fiat.

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