U.S. loses $1.3 billion in exiting Chrysler

[CrusaderFrank]

Meh... What's 1.3 billion....

Proverbial drop in the 0bama-spendathon bucket...

Michelle can blow that taking her entourage out to lunch

 

[Jroc]

Obama essentially gave Chrysler to a foreign automaker Fiat, and the UAW.

Before yesterday, Chrysler had said Fiat held options that included acquiring 40 percent of the original stake held by the UAW trust that pays for retirees’ health care. The option is exercisable from July 1, 2012, to Dec. 31, 2016, and in amounts of as much as 8 percent in any six-month period, according to the filing.

Model Milestones

Fiat gained a 20 percent Chrysler holding as part of the U.S. automaker’s government-backed restructuring in 2009. In exchange for sharing management and technology, as well as reaching operational milestones, Fiat receives as much as 35 percent of Chrysler without paying any cash. Marchionne has said he expects the final milestone, worth a 5 percent stake, to be reached by year’s end.

Marchionne is pushing Chrysler to raise its global sales this year by 32 percent to 2 million and turn an annual profit of $200 million to $500 million.

Chrysler had first-quarter net income of $116 million, its first profit since bankruptcy. Global sales rose 18 percent

Fiat Buys Rest of U.S.’s Chrysler Stake, Right to UAW Shares - Businessweek

 

[Jroc]

Obama forced Chrysler into bankruptcy. This story originally appeared in the Detroit Free Press but the page is gone now had find it on a blog

Obama’s auto-czar Steven Rattner (one of many illegal czars) forced Chrysler into bankruptcy and a merger with Fiat, even as Chrysler proposed viable alternatives. Chief among the demands of the Obama Administration’s insistence that Chrysler merge with Fiat, the Italian automaker known for it’s manufacturing of small, eco-friendly cars.

Chrysler had apparently come up with plans and found enough savings to avoid Chapter 11, restructure itself, and remain a stand-alone entity. It was in the process of retooling its car market and discussing a possible merger with General Motors, another victim of the new Government Auto Task Force. The valuation of such a merger is considered far higher than the merger that ultimately happened with Fiat, and would have paid private bondholders in full, making a good free-market solution to the entire automobile crisis.

Obama’s auto-czar, however would have none of it. Even as the entire management team of Chrysler urged a different course, Rattner steered Chrysler towards bankruptcy and a merger with Fiat

Obama's Auto-Czar Steven Rattner Forced Chrysler's Hand | Axis of Right

 

[Zander]

The goal was to protect the Unions at any cost. On that level, it was a raving success. Unfortunately, the tax payers took a bath when they really should not have. Free market solutions were never seriously considered.

 

[CrusaderFrank]

The Left loves to spend your money to support job killing Unions

Look what the UAW did for Detroit