Looks like Chrysler is headed for chapter 11 bankruptcy next week

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http://www.msnbc.msn.com/id/30366383/

I guess you'd better consider purchasing all your authentic Chrysler reproduction parts now.

BREAKING NEWS
msnbc.com news services
updated 25 minutes ago

NEW YORK - The Treasury Department is preparing a Chapter 11 bankruptcy filing for struggling U.S. automaker Chrysler that could come as soon as next week, according to a New York Times report.

People with direct knowledge of the action told the newspaper that the U.S. Treasury has an agreement in principle with the United Automobile Workers union, whose members' pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing.

Fiat of Italy would complete its alliance with Chrysler while the company is under bankruptcy protection, the paper said, but the problem of Chrysler's lenders remains unresolved.

The government has offered Chrysler's lenders, who hold $6.9 billion in company debt, about 22 cents on the dollar, or $1.5 billion, and a 5 percent equity stake in a reorganized Chrysler. But earlier this week the lenders proposed that they receive 65 cents on the dollar, or $4.5 billion, and a 40 percent equity stake, the paper said.

If no agreement is reached between the government and the automaker's lenders a legal fight could follow. The lenders could lay claim to the company's collateral, including plants, brands and equipment, even ahead of the government, the Times said.

A senior source at the Treasury told NBC Thursday afternoon that the New York Times report is "speculation" until a deal is done, adding that "all contingencies" are being planned for the automaker, adding that just because the administration is preparing for bankruptcy it doesn't mean that's the path it will ultimately take.

In late March the Obama administration gave Chrysler one month to reach an agreement for an alliance with Italy's Fiat, a reduction in secured debt and resolution of labor issues with its unions. Both Chrysler and General Motors are surviving on billions of dollars of taxpayer money.

President Obama said the turnaround plans that the automakers presented to Congress earlier this year hadn't gone far enough. He gave Chrysler one last chance to turn its operations around, raising the threat that he might force the company into a quick, managed bankruptcy if that proves to be the fastest way to restore it to health.

On Thursday, an Italian union official told Reuters that Fiat Chief Executive Sergio Marchionne has indicated a willingness to consider talks with Opel, the troubled German unit of General Motors.

Speaking to Reuters after participating in a meeting between union officials and Marchionne, Enzo Masini, an official with the FIOM-GGIL union, said Marchionne was ready to embark on talks with Opel, even though Fiat was already engaged in partnership talks with Chrysler.

"Marchionne said that Fiat has the ability and the capacity to handle two series of negotiations," Masini said.

The unions are concerned about the prospect of a deal with Opel since it could lead to possible job cuts and plant closures, Masini said.

Separately, GM said Thursday it will temporarily close 13 assembly plants in the U.S. and Mexico — some for more than two months — as it tries to pare back its bloated inventory due to slumping sales.

The company said in a statement that the closures will begin in May. Shutdown weeks vary by factory, but some will be closed for nine or 10 weeks.

GM said the shutdowns will help control high dealer inventories and bring production in line with sales. The company plans to cut production by 190,000 vehicles.

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This could spell doom for the new electric Peapod.

[472 R/T SE]

Repost 

http://www.dodgecharger.com/forum/index.php/topic,56612.0.html

[bull]

Repost 

http://www.dodgecharger.com/forum/index.php/topic,56612.0.html

Really? Check the dates, Sherlock.

[472 R/T SE]

Yeah I know.  I did it on purpose cause you were sniveling no one noticed this thread over in the other one.

[bull]

Yeah I know.  I did it on purpose cause you were sniveling no one noticed this thread over in the other one.

Nah, I just thought it was odd that no one cared until it actually happened. ADHD I guess.