# Chrysler to file for bankrupcy **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [April 30, 2009, 6:05am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036 "2009-04-30T06:05:19Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [April 30, 2009, 9:18am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/21 "2009-04-30T09:18:34Z")
GMAC will become the financing source for new Chrysler cars,” the official said on background. GMAC will handle both wholesale and retail financing. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [April 30, 2009, 9:19am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/22 "2009-04-30T09:19:44Z")
> [@boxxa](#): > > It entertains me that these companies report losses of millions per day yet people still want to bail them out… > > Seriously? How the fuck do you lose millions a day and just not talk about it? > > They missed the industry curve… the failed… let them go bankrupt and move on. If my company failed becuase we didn’t respond to a changing market or produce a product people wanted, is the government going to bail us out? No. So then you make thousands of Americans unemployed. They in turn stop buying everything. Other industries are hurt. They lay off people. They stop buying things. Rinse, repeat, until no one has a job. ---
**Author:** ![Blue\_Eyed\_Devil](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/blue_eyed_devil/32/7292_2.png) [@Blue\_Eyed\_Devil](https://forums.speedlife.net/u/Blue_Eyed_Devil)\ **Post date:** [April 30, 2009, 9:21am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/23 "2009-04-30T09:21:23Z")
. ---
**Author:** ![boxxa](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/boxxa/32/5045_2.png) [@boxxa](https://forums.speedlife.net/u/boxxa)\ **Post date:** [April 30, 2009, 9:24am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/24 "2009-04-30T09:24:25Z")
> [@Joe](#): > > So then you make thousands of Americans unemployed. They in turn stop buying everything. Other industries are hurt. They lay off people. They stop buying things. Rinse, repeat, until no one has a job. But dumping billions into a company is gonna fix the problem? The problem is the company failed and now they are closing. Billions of dollars is not gonna do anything but extend the problem and make things worse all around. Let the company fail. Best case is that an Asian company buys the plants and maybe produces something here. Look at all the layoffs in WNY alone. Why don’t those companies deserve a bailout but this one does? ---
**Author:** ![klug](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/klug/32/5222_2.png) [@klug](https://forums.speedlife.net/u/klug)\ **Post date:** [April 30, 2009, 9:26am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/25 "2009-04-30T09:26:06Z")
i just heard the UAW will take on 55% of Chrysler llc. is this true or bs? ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [April 30, 2009, 9:27am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/26 "2009-04-30T09:27:24Z")
They are providing them with the financing that dried up as a result of the financial industry accidentallying itself, and the legal means to restructure the business. They’re not saying “Here, I like you so have this free money.” ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [April 30, 2009, 9:33am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/27 "2009-04-30T09:33:39Z")
> [@Fry](#): > > They are providing them with the financing that dried up as a result of the financial industry accidentallying itself, and the legal means to restructure the business. They’re not saying “Here, I like you so have this free money.” :word: And the layoffs in WNY, although they suck, are small potatoes compared to an American automaker going down, where it has the potential to screw things up from a macroeconomic perspective. Everyone has a stake in seeing them survive and become able to pay off their debts and get back on their feet. If they liquidate, everyone loses. ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [April 30, 2009, 10:12am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/28 "2009-04-30T10:12:24Z")
No one wants them to liquidate. It just would have made more sense to go into bankruptcy and restructure with GOV money instead of giving them all the money first. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [April 30, 2009, 10:13am UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/29 "2009-04-30T10:13:08Z")
It sounds like boxxa does ---
**Author:** ![traumadog](https://avatars.discourse-cdn.com/v4/letter/t/8baadc/32.png) [@traumadog](https://forums.speedlife.net/u/traumadog)\ **Post date:** [April 30, 2009, 12:08pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/30 "2009-04-30T12:08:23Z")
Depending on how things go, Chrysler may have to liquidate _some_. The guys that balked have “secured credit”, meaning that they had collateral-backed loans. These are usually the ones that get paid first in any Chapter 11 reorganization - though it depends on how Cerberus wants to handle that. As for the UAW having 55% of the new Chrysler, I’d bet that they won’t have any say - outside of maybe a board member - as the shares are supposed to go into the VEBA, and not the UAW directly. ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [April 30, 2009, 12:17pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/31 "2009-04-30T12:17:46Z")
– 55% will be owned by the Voluntary Employee Beneficiary Association (VEBA), - 10% shared proportionally between U.S. and Canadian governments, - 20% owned by Fiat. – 15% of company will be distributed to Fiat in three 5% increments for meeting the following goals: creating U.S.-built 40-mpg vehicle platform, providing a U.S.-built fuel-efficient engine family and giving Chrysler access to global distribution network. ---
**Author:** ![Avatar](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/avatar/32/5076_2.png) [@Avatar](https://forums.speedlife.net/u/Avatar)\ **Post date:** [April 30, 2009, 12:31pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/32 "2009-04-30T12:31:58Z")
Some liquidation is inevitable. The industry, as it currently stands, is just too big for the market right now. The larger financial/economic situation of the US economy just brought the festering sores of the auto industry to the surface, after years of ignorance and neglect. ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [April 30, 2009, 12:43pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/33 "2009-04-30T12:43:28Z")
55% employee ownership? Did a young engineer that had just designed a motor that is fueled by static electricity in the air stand up at the announcement and say “Fuck you I’m out!”? Crazy world these days… ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [April 30, 2009, 12:46pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/34 "2009-04-30T12:46:58Z")
They really do have that much in liabilities to employees and retirees…mostly health care. ---
**Author:** ![Blue\_Eyed\_Devil](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/blue_eyed_devil/32/7292_2.png) [@Blue\_Eyed\_Devil](https://forums.speedlife.net/u/Blue_Eyed_Devil)\ **Post date:** [April 30, 2009, 12:49pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/35 "2009-04-30T12:49:37Z")
So if our government has ownership they could hypothetically make automotive standards to fit GM and/or Chrysler cars and screw Ford right out of business? They could also ignore OSHA and the EPA because they(the govt) won’t fine themselves right? lol. There are definatley a lot of unanswered (or unasked) questions in these deals. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [April 30, 2009, 12:50pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/36 "2009-04-30T12:50:26Z")
Maybe if the government was one single entity… ---
**Author:** ![snowracer101](https://avatars.discourse-cdn.com/v4/letter/s/258eb7/32.png) [@snowracer101](https://forums.speedlife.net/u/snowracer101)\ **Post date:** [April 30, 2009, 12:57pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/37 "2009-04-30T12:57:20Z")
MMM I smell FIAT cars being sold in America with in the next few years. YES! ---
**Author:** ![Avatar](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/avatar/32/5076_2.png) [@Avatar](https://forums.speedlife.net/u/Avatar)\ **Post date:** [April 30, 2009, 1:03pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/38 "2009-04-30T13:03:19Z")
Fiat Grande Punto Abarth would be hot or maybe a 500. The rest of the brand is pretty blah though. ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [April 30, 2009, 1:03pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/39 "2009-04-30T13:03:23Z")
> [@Joe](#): > > Maybe if the government was one single entity… They’re all in on “it.” :tinfoilhat: ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [April 30, 2009, 1:20pm UTC](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036/40 "2009-04-30T13:20:39Z")
> [@Joe](#): > > Maybe if the government was one single entity… You mean like once Franken is seated? [Previous page](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036.md?page=1) [Next page](https://forums.speedlife.net/t/chrysler-to-file-for-bankrupcy/67036.md?page=3)