Treasury takes $1.6 billion loss on Chrysler loan

[IScreamSundays]

Source: MSNBC

WASHINGTON - The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009.

Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.

Treasury said Monday that Chrysler repaid $1.9 billion of a $4 billion loan, which was extended before the company filed for Chapter 11. The government hopes to get another $500 million from the company that emerged from bankruptcy, Chrysler Group LLC.

Treasury officials said that the government had no plans to boost its stake in the new Chrysler to cover those losses. It also acknowledged another $1.9 billion in potential losses from a separate loan that had been made to the company that went through bankruptcy proceedings. It indicated slim hopes of recouping much if anything from that separate $1.9 billion loan.

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Read more: http://www.msnbc.msn.com/id/37196224/ns/business-autos/

[guruoo]

1. Mercedes was lucky to get out when they did

Disastrous decade could end in split

From a table on the terrace at the most exclusive restaurant on the banks of Lake Geneva, the deal seemed like such a good idea. The luxury and class of Mercedes combined with the mass-market appeal of Chrysler was supposed to create the world’s most popular cars and most profitable car company.

But Jörgen Schrempp, the former Mercedes Benz chief who instigated the $38 billion deal, and Bob Eaton, his Chrysler counterpart who agreed to it over dessert in that Lausanne eatery, could not have been more wrong.

Less than a decade after that historic and, some would say, excessive lunch, the 1998 merger of Germany’s Daimler Benz and Chrysler of the US has proven indigestible.

More than 40,000 jobs have been cut from the vast automotive empire, plants have been shuttered, assembly lines stopped.

http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article1386913.ece


Daimler finalises Chrysler split
Thursday, 01 November 2007
Daimler's de-merger from Chrysler has been finalised today.

Several organisational changes have been introduced following the separation of the two companies, along with a raft of name changes.

The Mercedes-Benz Cars and Commercial Vehicle business will now be known as Mercedes-Benz UK and the company's retail subsidiary will become Mercedes-Benz Retail Group UK. From April 2008, DaimlerChrysler Financial Services UK will be known as Mercedes-Benz Financial Services UK.

http://www.motortrader.com/industry-news/carmaker-news/26113-daimler-finalises-chrysler-split.html

[No Elephants]

2. Trickle down, tsunami up. I'd love to know the terms of these loans, that we already know we're

going to lose $34 billion, between GM and Chrylser, yet they get to try to sell stock to the public to raise more money.

I'm more than happy to keep the jobs in this country, but couldn't we have done that without losing $34 billion dollars?

Are we so afraid to have the RW call us socialist that we'd rather burn taxpayer money (or the commercial equivalent)? Actually, it's not even taxpayer money, but money that will come from our grandkids and great grandkids. (We'ver already passed our kids' generation.)

[Psephos]

3. Will be interesting to read the posts from those ebullient guys on that other thread.

This one:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4384910

$34 billion gone forever...and that's according to official government auditors. What else could have been done with that money instead of give blood transfusions to zombies? If it were up to me, we'd have used it to create a vibrant green-energy manufacturing industry that could employ more people than a car industry dying of its own excesses.

Sooner or later the shaky pension fund will fail and dump yet another $30 billion in unfunded liabilities on the PBGC (i.e., the US taxpayer). The media has been silent about this...I'm sure it will come as an "unforeseen shock."

[Abq_Sarah]

4. Chrysler, aka "Old Car Co"

never intended to pay back the loans. This isn't a surprise, it's been known for a year. The government cut them a deal that freed them from the responsibility of repaying the full 7 billion they were loaned in order to enter bankruptcy. Chrysler LLC had been absolved of the responsibility to pay the full debt to the taxpayers with the support of our government.

http://money.cnn.com/2009/05/05/news/companies/chrysler_loans/

[ConcernedCanuk]

5. $34 billion - hmmm that mighta helped out some homelsess and uninsured

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fuck the hungry, homeless and those in need of health care

gotta keep them CEO s their million dollar salaries, and the companies their billion dollar profits

"give me your poor, your homeless"

"land of the brave, home of the free"

ya right . .