chrysler goes tits up

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After months on government life support, Chrysler is pinning its future on a top-to-bottom reorganization and plans to build cleaner cars through an alliance with Italian automaker Fiat. In return, the federal government agreed to give Chrysler up to $8 billion in additional aid and to back its warranties.

On Friday morning, bankruptcy court Judge Arthur Gonzalez is scheduled to hear the case's first motions, which typically will allow the company to continue paying workers and basic utility costs as it restructures.

Eventually, Gonzalez will have to sort out the key issue that made bankruptcy necessary: the creditors that hold $6.9 billion of the Chrysler's debt.

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@dyslexia,

Chrysler Canada is getting 15 billion from Canada and Ontario. The province gets a 2% share of the company and at least 20% of production must remain in Canada.

Personally, I lost all respect for Chrysler when they threatened to pull out of Canada if they did not receive a help package. I currently drive a Chrysler, but it is the last one.

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@Intrepid,

How do you like your Chrysler?

NPR noted than none of the Chrysler models have made it to Consumer Reports' most recomended cars report.

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@InfraBlue,

Great ride. A few problems.

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Good, it's for the best. Did we ever actually give them any money? If so, it might have been better if they'd filed bankruptcy earlier...

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Chrysler closes 2 Ontario plants

Chrysler's Ontario assembly plants in Windsor and Brampton shut down indefinitely on Friday, a byproduct of the company's bankruptcy protection filing the day before in the United States, the company has confirmed

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@Intrepid,

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@au1929,

One way or another the plants, and in fact most Chrysler plants will be idle or building cars for storage. How many would buy a car from a bankrupt company. One that may go bellyup at any time.

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@au1929,

In Canada, the government is backing them and, as I said above, now has a stake in Chrysler.

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@dyslexia,

dyslexia wrote:

Eventually, Gonzalez will have to sort out the key issue that made bankruptcy necessary: the creditors that hold $6.9 billion of the Chrysler's debt.

I'm not really onboard with the idea that creditors are to blame, unless the premis is that they are to write off debt. In that sense, all creditors are responsible for all bankruptcies, whether they are bond holders, hospitals, or payday loan sharks.

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OK, so I don't like the auto bailout, I don't like how obama bastardized the bankruptcy process with the auto bankruptcy ram-rod, I don't figure that the new Chrysler has a chance in hell of living long........but yesterday I bought her the Jeep Wrangler that she has always wanted.

what we do for our women.

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moved from the GM thread

So the dealers have been wanting to see sign that Fiat understands the America market, and also assurances that fiat can get the capital to move new product into the showroom, cause right now other than Jeep they have only crap to sell. They have not gotten either. though fiat says they will announce a plan soon.

Is there any hope for New Chrysler?

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@hawkeye10,

No! Mercedes had to already face the reality and abandon the once celebrated
union between DB and Chrysler - FIAT who has far less capital than DB will
fail as well.

FIAT might understand the American market, even DB did and the two cars
that were produced under DB's watch are successful, however, anytime you
have an assembly line worker who makes a wage minimum of $ 38+ and
enjoys extra benefits and retirement plans while the economy and the US
car industry is in dire distress, any company trying to help (bail out) will fail.

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@CalamityJane,

I agree, and yet I bought my wife a wrangler three months ago. Partly because nothing else would make her happy, but also I figure somebody will by Jeep and honor the warranty...at least I hope so. The consensus when Chrysler went tits up was that Jeep was the only thing of value in the corporation, that is would have no trouble finding a buyer.

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chrysler goes tits up

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