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April 30th, 2009
09:15 AM ET

Chrysler Bankruptcy

President Obama will talk about the auto industry at Noon ET live on CNN.  An administration official says Chrysler will enter bankruptcy proceedings. Tune in as Tony Harris brings you complete coverage of what this means for Chrysler workers, the nation's economy and you as a potential car customer. We want to know, would you buy a Chrysler if the company is reorganizing under bankruptcy? Post your comments!

Filed under: Tony Harris
soundoff (162 Responses)
  1. Jerry B Fort Lauderdale, Fl



    April 30, 2009 at 9:49 am |
  2. Michael

    This is yet another really sad day for all the citizens of the United States. The majority of the citizens were against bailing out Chrysler and GM. Well the proof is in the pudding AGAIN. Countless money of the citizens were yet wasted and it shows. Throwing water on a rotting tomato will not make it grow. People the problems that GM and Chrysler are having have not just developed within the last few months. This has been going on for many years. Its called ignorance with in the company. But our government still refuses to listen to us. Our government has wasted countless money on issues like this. I bet that those cheesy so called CEO's still have the planes. So they drove to the confrence. Whooopi. Make them sell the planes. Return money back to the company. But NO they will over look stupid stuff like that. When is it that our government will finally listen to us in the United States. All the money spent to try and bail out these yeahwhos. Do you think that GM and such is going to help us out. I went to the dealer and no help what so ever. WHERE DID MY TAX DOLLARS GO? We citizens have no idea what exactly is going on here. It is about time we do.

    April 30, 2009 at 10:52 am |
  3. Scotty Carlisle

    Should i buy a Chrysler? I can get a really good deal on a '08 Sebring. Does the good deal outweigh the potential hazzards down the road?

    April 30, 2009 at 10:55 am |
  4. maria

    As of now very hanging on whats going to happen to chrysler. Thousands of families will suffer if chrysler goes down. My question is what would happen if chrysler file bankruptcy, would there be still chrysler? what actions would be doing? still skeptic about fiat and chrysler merging, since they were withdrawn 20 years ago.

    April 30, 2009 at 11:00 am |
  5. Steven P

    I saw your piece on the morning news about the re-introduction of Fiats to the USA markets. On a recent trip to Phoenix, AZ I passed a truck with a flatbed trailer and on it was a new Fiat... looked a lot like a Mini Cooper. It was very nice looking, and if i was in the market for a new car, i would definitely consider a Fiat.

    When i was growing up a neighbor had an X19, a Fiat 2 seater sports car, like a Mazda Miata, it was cool and sleek for the time. American automakers need to get there heads out of their SUV's and back into a more attractive and economic cars... We should not be bailing these companies out, this problem is of their own doing.

    April 30, 2009 at 11:02 am |
  6. Laurie Wilson

    RE; Reservation comment – April 30, 2009
    I was appalled to hear your reporter refer to Joe Biden's comments about travelling in closed spaces as "wandering off the reservation". It is hard to imagine the insensitivity that would allow you to make such a remark to emphasis the notion that you thought his remark was ill advised. An apology would be appropriate, history telling me this is not likely to happen, please advise the reporter that comments like this are no more acceptable than saying such things as: "prisoners escaping concentration camps" or "women escaping the kitchen". My Grandfather was one of those men who were put in jail for daring to "wander off the reservation" without written permission. Shame on CNN!

    April 30, 2009 at 11:03 am |
  7. Luis in Phoenix, AZ

    As Mr T. would say, "I pity the fool."

    These hedge funds that caused the Chrysler deal to fail are playing with dynamite, and it's going to blow up in their faces.

    The general public is infuriated by the bailout. The whole thing is viewed as welfare for Wall Street. When more thousands of people lose their jobs and other sectors of the economy are further affected by what is seen as a Wall Street generated crisis, Main Street is going to react in a very negative manner. Hedge funds in general are going to take all of the blame.

    The taxpayer is going to foot the bill for warranties and they're potentially going to lose some of the billions of dollars already invested in Chrysler. Stimulus money is going to pay unemployment benefits, the general economy is going to take a further hit, and what is seen as a glimmer of recovery is going to falter. Main Street is going to pay the price for what will be seen as the hedge funds' greed.

    Think about what happened when AIG paid bonuses on taxpayer money. Congress moved on legislation to tax these bonuses at a rate necessary to recoup the cost. Pay and bonus limits were imposed on TARP funded companies. Executives received death threats. Torches and pitchforks were selling like hotcakes. A genuine mob mentality gripped the entire nation.

    These three hedge funds are making a HUGE mistake, both from a PR standpoint, and from a financial standpoint, because Congress, Main Street, and the Media is going to take it out of their collective hides.

    Hedge fund managers will not be able to sneeze without government approval signed in triplicate.

    April 30, 2009 at 11:13 am |
  8. Bob from Virginia

    It's sad, but ridiculous that these small hedge funds screwed the pooch. They should now get 10% of what they would have received under the deal to punish them for their greed and selfishness. Seems we've heard the term "hedge funds" from some other story recently, haven't we?

    April 30, 2009 at 11:14 am |
  9. Johnny

    I have said this many times, IF Chrysler (and the other U.S. Auto makers) would make vehicles as good as Japan, We Americans might actually buy them and the BIG 3 would not be in this mess like they are in time and time again. Here is a link to refresh your memory again just why American cars do not sell here.Look at the link close, you do not see many American cars here for a reason. Notice that the top 3 vehicles are Honda..

    April 30, 2009 at 11:14 am |
  10. Aaron Allermann

    Forgive me for sounding cold, but you can't pay creditors with nostalgia. It doesn't matter how much of an American icon you are– if your business model can't hold up and you're not making cars people actually want to buy, no amount of bailing out is going to save you.

    April 30, 2009 at 11:14 am |
  11. Speedgod

    This is great news! The less debt they have going forward the more successful they will be. BUT- how long will this bankruptcy last? I hope for their sake its done in less than 2 weeks. Doesn't this mean the remaining hedge funds that are folding out will just file their insurance claims on these bonds with AIG anyways and get paid?

    April 30, 2009 at 11:14 am |
  12. Doug

    A lot of hedge funds and banks that did not accept this deal hedged their positions with credit default swaps. A bankruptcy filing gives them much more than the 32 cents on the dollar that was being offered. You can't blame them for wanting to minimize losses.

    April 30, 2009 at 11:14 am |
  13. Neil

    Tony, I would like you to ask the panelists why the big three have not only resisted innovation over the past 2 to 3 decades, but have actively fought it. That seems to be the root of their current problems.

    Japanese car makers seem to build cars that people want to buy, where US car makers build the cars they want to build and then expect people to buy them.

    April 30, 2009 at 11:14 am |
  14. Steven Seaman

    If the dealers have to under value their inventories, what does that mean to the consumer while their in bankruptcy? Also, my wife has an 2008 Liberty with 2400 miles, what happens to her warranty?


    April 30, 2009 at 11:15 am |
  15. Farr

    I made a purchase 1 yr ago... a Dodge Charger, how does this affect my warranty and service?

    April 30, 2009 at 11:15 am |
  16. Carol Monk

    Regarding Chrysler – ok, so it's a bit sad about the bankruptcy, but so what! Lot's of companies go bankrupt – why should we keep protecting the American car companies. They did not rise to the competion of better cars produced by Honda, Toyota and others. They did NOT step up YEARS AGO to making a more fuel-efficient vehicle – or GREEN car. They built crappy vehicles and free-enterprise is their downfall. Sorry, but their product has not been competitive – pure and simple. It will NOT create a freefall mess if they don't emerge from Chapter 11. Let's just see what happens. And, if this kills the unions – again, so what?!

    April 30, 2009 at 11:15 am |
  17. John S

    I dont believe Chrysler will survive on its own, or with its marriage with Fiat. I believe, in the end, five years or ten years from now, Chrysler will be broken up and its different brands and factories merged with other countries. I, personally, would not buy a Chrysler car because it does not match with a GM or Ford or Toyota or Honda car. It would be foolish to make a significant investment of my life in a car that is not only up to par, but that the future of the company that makes the car is also uncertain.

    April 30, 2009 at 11:16 am |
  18. Gerry - Thornton, CO

    The interview with the dealer says it all: "people are buying foreign cars." Why?? Because those car companies understand the Voice of the Customer (VOC). Chrysler's management and the Board of Directors mismanaged the business. They ruined the business because they didn't understand the needs of the customers.

    April 30, 2009 at 11:16 am |
  19. Mary

    If Chrysler goes in to chapter 11- will the banks get their money first and small suppliers be left holding the bag? this will cause small supplies to go out of business- more jobs lost...and NEVER to return. We bail out banks and they screw us again.

    April 30, 2009 at 11:16 am |
  20. Mark Hillman

    They will be disassembling the Chrysler manufacturing plants...and you in the media will still be giddy about Chrysler's future prospects.

    April 30, 2009 at 11:16 am |
  21. Pollyanna

    The banks should not forgive the loans to Chrysler. I'm not so sure they wantetdto lend the money in the first place. What happes to the small lenders if the money isn't repaid? Do they get to go under?

    April 30, 2009 at 11:16 am |
  22. Holly Jewell

    I remember when the Chrysler Corporation was bailed out by the goverment under the Carter administration in 1979. At that time we had a gas shortgage and there were long lines at the pump. Chrysler had invested in big autos and couldn't sell them.

    It seems the have repeated made the same mistakes because once again they are are stuck with large cars that won't sell at a time when gas prices are on the rise.

    Woudn't a litlle marketing research be in order? Why didn't they learn from their mistakes? Is anyone holding the CEO accountable?

    April 30, 2009 at 11:16 am |
  23. rickfromdetroit

    Please correct me if I am wrong, but I believe Diamler still owns 19% of Chrysler. Why haven't we heard from them about the Chrysler "melt Down"

    April 30, 2009 at 11:17 am |
  24. Herbert Perez

    the other investers were right in not going along with deal just give Jeep to Ford keep American own and let the rest of chrysler go under

    April 30, 2009 at 11:17 am |
  25. G allan

    It is sad that they are going into bankruptcy ,but they have had many warning shots over their bow over thew years and they have failed to respond. The unions are way to powerful ,President Obama is like a puppet for the Auto Union as well as the Democradic leadership like Pilosy and Dodd ,they need to get some other more reasonable Demo up there . The auto unions are getting like 55% of the company ? Is this not a little unreasonable . I assume they are losing their retirement and taking 60% pay cut like the airlines have and but only 5%of the company.

    April 30, 2009 at 11:18 am |
  26. Dan Fleury


    April 30, 2009 at 11:19 am |
  27. allen

    We need to get the names of the me generation bond holders out so when the country gets back on its feet we can make sure we do not support them so they can go belly-up.

    April 30, 2009 at 11:19 am |
  28. Efrain

    If Chrysler's products really are capable of coming through for the company, how come the administration does not use Chrysler vehicles when reliability counts?

    It sounds horrible, but I would have to be brain damaged to buy a Chrysler if a Honda or Toyota is available for about the same price. (And it is!)

    April 30, 2009 at 11:19 am |
  29. Mike

    Why isn't our Government pouring money to emerging American auto companies that are producing quality electric vehicles like Tesla Motors for example, instead of throwing money into failing car companies that are entrenched in old technologies?

    Why not subsidize these new companies so they can utilize and save the resources (manufacturing plants, suppliers, union workers, dealers etc.) to mass produce these green vehicles so they can be more affordable to the general population.

    I have not heard anyone ask this question in the media or reporters at press conferences, yet it is one to the top questions I hear in discussions among us regular tax paying citizens.

    April 30, 2009 at 11:21 am |
  30. Al

    would you young people please get your heads out of your butts and do your homework before you open your mouths. Chrysler has been here before and came out better for it. Like any company you don't know what caliper of management will come along in the future.

    April 30, 2009 at 11:24 am |
  31. Roy L Daniel

    I worked 30 years for Chryler Jeep Corp out of Toledo Oh....only missed 10 days of work and 9 of those were funeral...went all the up and downs with Jeep...from lay offs in the 80s to American Motors to Chrysler....always staying loyal and because management mishandling after has come to this...SAD....what is going to happen to my penision and health care....had a stroke two years ago and all the retirees are at any age where we need good health care and our pension we worked so hard for....Thank You Roy Daniel Las Vegas Nv

    April 30, 2009 at 11:24 am |
  32. Laurie G

    Its time to let the auto manufacturers go. They are like the dinosaurs that were unable to adapt to climate change.

    I feel for all the people whose jobs are being lost, but pumping money into the big car manufacturers wasn't saving their jobs anyway.

    At the same time, it disgusts me that the banks were given all this cash to free up credit, but they are refusing to lend money and/or forgive debt.

    April 30, 2009 at 11:25 am |
  33. Carl Stanley

    Would you give up 68% of your investment to help a company that has caused their own failure? Why does anyone think that Chrysler should be allowed to dump their debt on others. Why does Chrysler say they need Fiat to usher in new fuel efficient cars. If they are the third largest car company shouldn't they be able to make a car that gets good mileage and one that meets the standards that americans have become used to. I'm talking basic quality – a no brainer that I could have told them. But they were too caught up in their own world and not caring to make a difference for the better – for themselves and for America. But now others are expected to forgive their debt and bad decisions for the sake of America. Where is the truth?

    April 30, 2009 at 11:26 am |
  34. R. Cernak

    Can anyone tell us who, and what formula is used by the bankrutcy court when determining how much these bond holders are paid for each dollar invested? It's my understanding they where offered .32 cents on the dollar, how much do they stand to gain by forcing a bankruptcy? No one wants to loss money on thier investments but it looks like more of the same old thing, the have a lots (millionaire hedge funds) agianst the have nots (the majority of the population).

    Rich from Colorado

    April 30, 2009 at 11:27 am |
  35. Chuck

    Chrysler has always a part of the American auto scene. From the High Performance cars to the Mimi Vans, to the revolutionary (and highly copied) truck redesigns.
    Why has America abandoned this icon while allowing billions of dollars to be given to the very people who threw the economy in the toilet, ie: the banks and hedge fund preditors.
    I feel we have lost our way......

    April 30, 2009 at 11:28 am |
  36. Cheryl

    I saw a gentleman being interviewed earlier. (I don't know his name. I'm not sure if he is a representative from Chrysler or a dealer selling Chrysler cars.) I really didn't like his reaction to who he thinks has caused their money problems. He wants to blame it on people who have bought foreign autos. Who is Dahmler and who owns Fiat? Something tells me there might be a bit of "foreign" involved there!!!!!!!!!!!!!!!!

    April 30, 2009 at 11:30 am |
  37. terri stahl

    I am a chrysler retiree. very confident that chrysler will come back
    strong. chapter 11 is a form of reconstructing chrysler, as for
    liquidation, i believe that more plant closings will take place as this
    was in the works at the time of my retirement in december.
    as i am informed at this time, retirees will lose our opticl and dental benefits, and the active employee will have wage freezes till 2011.
    no holiday pays or bonuses included.
    this will aid in the fiat and chrysler venture in low cost and fuel efficient
    as for purchasing a chrysler vehicle in the future, definetly, especially
    one with a jeep emblem on it. buy american.
    thank you.

    April 30, 2009 at 11:31 am |
  38. Paul Hill

    There is a God! It's about time. Chrysler has been selling America,
    cheap, inefficient cars for years. This is a new era. This new generation. We will no long ignor the 800 pound gorilla in the room.

    April 30, 2009 at 11:31 am |
  39. Bill R. Largo, Fl.

    I support helping Chrysler to survive. Their trucks, min-vans, and Jeep lines are their strong products, even so, they have continued quality issues which must be addressed. Becomming a partner with Fiat has some engineering possibilities, but again quality has been a problem for Fiat. Lee Iacocca warned about the demise of the auto business when he said, "everybody is trying to make the same thing(cars,trucks, Suv'setc.) instead of doing what they do best. You can only can cut the pie into so many slices." Maybe the car czars and Chrysler should ask for his input before spending good money after bad. I hope for the best!

    April 30, 2009 at 11:35 am |
  40. Michael

    Hey AL
    I think you answered your own question. Now you see what caliper of management Chrysler is. They have been struggling for years. And it gets worse each time. Now the truth is coming out. For you to criticize everyone on here and calling them young people is just childish.

    April 30, 2009 at 11:40 am |
  41. Connley

    I believe the bailouts are nothing more than a reason for our elected officials to transfer the public wealth into the hands of supporters in the private sector that will funnel the money through lobbyists back into the campaign funds of the officials that voted in favor of the bailouts. A govt. of the people and for the people doesn't go against what the people want. We are little more than a country at the mercy of an oppressive and corrupt federal govt.
    I would like to see the governors take a vote of no confidence on the federal govt., take the power away from Washington, and put it back in the hands of the states. Keep in mind, this was tried in the 1860's and the U.S. federal govt. declared war on the state local govts.
    The U.S. federal govt. declared war on the United States! It is dangerous for a select few to control all the power and all the money!

    April 30, 2009 at 11:43 am |
  42. Mike - Pasadena CA

    The EV-1, Hybrid Cars from foreign manufacturers, rising oil prices. OBVIOUS signs to get the American Auto Industry off their duff and becoming competitive. However it is clear that the greediness of Wall Street Cronies that have manipulated this for heir personal gain.

    Look at this strategically. Wall street created short term profit taking by forcing quarterly profit reporting. This forced corporations to focus on short term profit making and it generated INCREDIBLE profits to Wall Street firms because of increased trading, they make commissions regardless if the trades make money, so they win no mater what.

    Follow the money, notice who has benefited from this economy in the past 8 – 10 years . . . the wealthy elite and Wall Street Executives, while the rest of the American Middle Class has been diminished.

    April 30, 2009 at 11:43 am |
  43. p.j.

    While traveling in France two years ago, my husband and I rented an Alfa Romeo. It was without a dought one of the most comfortable, fuel efficient, and beautiful automobiles I have ever driven. It was a sport wagen that handled like a sports car and its safety rateing was very high. Alfa Romeo is part of the Fiat Group, so if the Alfa Romeo is any indication as to what Fiat can do, Chrysler will be one of the best automobiles on the market.

    p.j. new york

    April 30, 2009 at 11:44 am |
  44. kandy

    First, I must comment on the commentator from Fortune magazine. He sounded much like a Rush Limbaugh. His opinion immediately seems suspicious to me.
    Second, where are these foreign cars everyone wants for gas savings? When I travel the roads of Texas I see not small cars but sport utility style vehicles, and large trucks used as family vehicles. It appears the auto makers were and are making what Americans want.
    Third, the government has for years bailed out farmers with subsidies. We have bailed out the oil and gas companies with tax breaks and tax incentives.
    And last, we had better start trying to hang on together rather than finding fault in every action that does not save your butt personally. Unless one has a fortune that can be secured in a foreign account we will either survive or not survive as a united America.

    April 30, 2009 at 11:49 am |
  45. Mike Lonergan

    The first step in any restructuring should require Bob Nardelli to step out of the drivers seat of Chrysler. . . look at his track as a CEO; this man recently all but tanked the Home Depot and the company is still suffering from his reign and years of incompetence.

    April 30, 2009 at 11:52 am |
  46. Randolph Lee

    In 2003 I purchased a PT Cruiser to replace my ageing Suburban. Moved from “13” 1971 mpg to “28” 2003 mpg. That point alone speaks volumes about our US auto industry. If the auto industry had just worked on 1 mpg per year increase, by 2003 we should have been at 45… but no.

    Anyway, I did gain many nice features but lost significant utility. At the same time in Europe, the PT could be purchased with a Daimler turbo diesel... near 50 mpg plus it out accelerated the standard gas engine and better capacity. E-mailed Dr Z asking where my diesel was... Dr Z replied that we had to wait until 2006 due to the new US low sulfur diesel requirements. Still waiting. When will the US auto makers wake up to what the Europeans have known for years?

    April 30, 2009 at 11:56 am |
  47. pat

    We hear reporters from Washington to New York and everyone in between, why not go right to the source in Auburn Hills, Michigan and get their views on what the affects of bankrupcy will be. Not only will Michigan be hurting, but OUR NATION AS A WHOLE WILL FEEL THE EFFECTS!!! Try reaching reporters @WWJ-950-AM, in Detroit. They have a constant source of info. on automotive news. Let's hear from Michigan.

    April 30, 2009 at 12:07 pm |
  48. Bruce Hartley

    American auto co. cannot compete with forign auto co.because the cost of healthcare is in the plrice of american cars. No forign autos have the cost of healthcare in the price of their cars. This is not a level competive field. Also, by law, Japanise auto dealers can not sell american made autos.

    April 30, 2009 at 12:11 pm |
  49. Zev Shapiro

    To Anyone That Will Listen:
    So I have sent letters to various people. I have a plan to instantly stimulate the Economy and turn things around. President Obama has said that if someone has an Idea, he will listen. How can I find the right person to get in touch with him?

    April 30, 2009 at 12:14 pm |
  50. Connley

    Part of Chrysler's problem is substandard quality. I own a jeep that has had nothing but problems since it was back at the dealership having parts replaced within a month of purchasing it new. My parents own a Chrysler Town and Country and had their transmission replaced at 40,000 miles.
    I purchased the Jeep for business travel but had so many problems with it that I parked it in the garage and bought another vehicle from a different manufacturer. I DO NOT trust the reliability of my jeep liberty for long distance travel.
    I will never buy another chrysler or jeep product nor will my parents. I also don't recommend their products to anyone else.

    April 30, 2009 at 12:19 pm |
  51. Mike - Pasadena CA

    How Nice. The smaller investors get a bad rap for trying to be fiscally responsible. But the very institutions who have been enabling incompetence at the highest levels of management are now the great heros. Politics reigns supreme.

    THere is no more We the People, we have become a Corporatocracy, not a Democracy.

    April 30, 2009 at 12:21 pm |
  52. R Toles

    Have we become a nation to expensive for ourselves here in the U.S.? Given the failure of many companies, is it time to reconsider major restructuring for our mftg. companies (i.e. dissolving unions)? Is that a viable solution, at least in part? What does that mean for other companies in Chrysler's shoes?

    Ralph – Fresno CA

    April 30, 2009 at 12:29 pm |
  53. Johnny

    An important issue here as well : They will have to do 2 things.. 1. Make cars affordable. Most people buy used cars because they can't afford new ones. If they want to sell their cars new, they will have to make them affordable. Not many people like paying $30,000 for a new car ( I know I can't afford that and won't want to anyways).
    2. They have to make it so every 1 can and will get approved for a loan for these new vehicles. It does no good at all selling better cars if no one can get approved to get a loan for it from the bank. This is the main problem in USA..if your credit is bad, you have to settle for a cheap 'buy here/pay here' vehicle. This does not help the big 3 at all. So make them affordable, fuel efficient, and easy to get a loan for, and the American cars might start selling.

    April 30, 2009 at 12:35 pm |
  54. Dianne Richardson

    According to the Free Press @ 7:46am out of 46 firms the three holdouts are OPPENHEIMER FUNDS, PERELLA WEINBERG PARTNERS AND STAIRWAY CAPITAL.

    What I want to know is who are the principals owners of these companies, where they opperate and what their businesses consist of. ARE ANY COMPANIES THEY HAVE GETTING ANY TAX PAYER BAILOUT MONEY.

    Are they deliberately driving US companies into bankruptcy and out of business in an attempt to undermind our economy.

    April 30, 2009 at 12:35 pm |
  55. Martin

    How dare Mr. Obama blame the Chrysler bankruptcy on the three secured debt investors? You make a secured investment because in the event of bankruptcy you get your money back! If you want to blame someone, look at the entitlement mentality of both union and management for decades.

    April 30, 2009 at 12:36 pm |
  56. Don Salyards

    Now that Obama and the Federal Government are solidly behind General Motors and Chrysler, there is more reason than ever to go out and buy a FORD!

    April 30, 2009 at 12:36 pm |
  57. Kim Olsick Medina OH

    I am saddened that Americans are not purchasing US cars. If they want to continue to pump money back to these foreign companies, then maybe they should move there. Keep our auto companies and people working BUY AMERICAN.

    April 30, 2009 at 12:36 pm |
  58. ray

    i, too, would like to see the names of the hedge funds listed. i wonder, has ANYONE every checked to see when gas prices were $4+ a gallon how much hedge funds drove up the cost of oil.

    April 30, 2009 at 12:36 pm |
  59. Bill

    UAW is a cancer in the industry. Most unions are bleeding good companies and saddling them with unreasonable expenses. To bad Chrysler will be back into bankruptcy within 2 years.

    April 30, 2009 at 12:36 pm |
  60. Steve Land

    What a difference 101 days makes! The former administration would NEVER have stood up to hedge fund managers in favor of the average working guy and a long term view for Chrysler's employees. The President gets more impressive by the day.

    April 30, 2009 at 12:37 pm |
  61. Cwilliams

    Tony, I recently watched Obama and the Chrysler issue. I wanted to tell you about a report that was featured on Free Beer and Hotwings Morning Show, they were judging the Obama Auto Team, and discovered that out of all of them, only 2 even owned American Cars! Who are they to judge the status of the Auto Industry? They know nothing about it! One of them owned a 10 year old Lincoln, the other was a Cobalt! All the other cars were Mercedes, BMW, Lexus, etc, etc. People who know nothing about the auto industry or the quality, need not have an opinion!

    April 30, 2009 at 12:38 pm |
  62. Cody

    I think that it is a shame that us a taxpayers have to fork over the bill for Chrysler, when Chrysler does nothing for us except try to charge outrages prices for cars. Car dealers want to help the economy and the consumer lower prices of cars to affordable prices. I believe that this would alone re-establish the car market for the economy.

    April 30, 2009 at 12:38 pm |
  63. Mike

    It is about time to allow Chyrsler to move forward with Bankruptcy. It is too bad that our Government invested so poorly into this company. Now our government will have board members involved in Chrysler. This being said (I love Chrysler Products)...I definitely will not be purchasing anything while the government is involved in decision making.

    I wish Chrysler all the luck with FIAT...when they rid themselves of our United State Government hands... I'll be back to buy more cars and/or trucks.

    April 30, 2009 at 12:38 pm |
  64. Zack

    If you don't like Chrysler buy a GM or Ford. Chrysler isn't near GM's quality yet.

    But don't make it seem like all American autos are terrible quality, GM and Ford make excellent cars. I will be buying American next, Will you? Because I want to see these companies get back on their feet. Like President Obama said, Lets make this century a American century, quit sending your money overseas to Toyota and Honda.

    April 30, 2009 at 12:38 pm |
  65. Jerry

    One of the other comments was from a former auto worker asking about his pension and healthcare. Well, I don't have a pension. All I have is Social Security. And I don't have any special healthcare plan beyond Medicare. These special benefits auto workers have demanded over the years are one of the big reasons American auto companies aren't competitive and are in the mess they're in today. To the auto workers: welcome to world the rest of Americans live in.

    April 30, 2009 at 12:38 pm |
  66. ralph

    Well were is all the talk about how the UAW is at fault in all this....all you idiot bloggers who talk down about unions have nothing to say know...we came to the table and took cuts again...i bet my yearly pay check you wont hear anything about this group that held out....which is a shame because the whole nation knows everything about our UAW contracts...this just shows how the working class is treated compared to these wall st. idiots !!!!

    April 30, 2009 at 12:38 pm |
  67. TONY H (Los Angeles)

    Chapter 11 is the best thing that could have happenned to Chrysler. This is chance for the company to re-group and come out leaner in the future. People forget that bankruptcy in most cases is chance for a new begining. It doesn't mean the company is closing down. Let's look at the big picture!

    April 30, 2009 at 12:38 pm |
  68. larry

    looks like obama just sold chrsler to a foreign company... now we will only have two companies that are american auto companies...and maybe only

    April 30, 2009 at 12:38 pm |
  69. Kathy

    Aren't hedge funds whose Chrsyler debt is underwritten by CDSs indirectly receiving TARP funds, since that is what keeping the underwrtiers such as AIG afloat? And they will spoil an otherwise acceptable deal with a future for Chrsyler. Bankruptcy judges take note.

    April 30, 2009 at 12:39 pm |
  70. Bill Semko

    I'm tired of hearing the auto workers wining about losing their pensions and health insurance if the companies go broke. Many companies have downsized their workfoces in the past 25 years and many people have been left with no insurance and their pensions were wiped out. Why should my tax money help the UAW keep their outragous high wages when the rest of us were forced to find lower paying jobs? Let the auto workers go work at Walmart for eight bucks an hour.

    April 30, 2009 at 12:39 pm |
  71. Fran

    I have to give Pres Obama a lot of credit for working to save the many jobs at Chrysler. People just don't realize that letting this company go under would be an economic disaster.

    April 30, 2009 at 12:40 pm |
  72. Auto Industry

    I would like to know why the single largest partner with the Auto Industry, GM,Ford and Chrysler with HUGH PROFITS every quarter and who relies on the Auto Industry has not stepped up to the plate.

    And, the bond holders are getting slammed for not co-operating, well I think they are protecting their clients, some what different to what AIG did, they protected themselves.

    And I find it difficult to understand why not one News Reporter has looked into why the Auto Industry's largest partner has not been asked to assist.

    "THE OIL COMPANIES" who without vehicles are in trouble.

    Thank you

    Fred Somers Sr

    April 30, 2009 at 12:40 pm |
  73. John

    It's about time Chrysler went down. This may sound morbid, but This company and it's dealers have NOT progressed through to the 21st century. I've owned two American cars in my experience. BOTH were poorly built and BOTH broke down prematurely. The Dodge I owned was my first new car. It was poorly engineered and poorly assembled even though it was a "special" model (SRT). The dealers I used were even worse than the car itself. 12 unscheduled times I had my Dodge in before 30K miles! 12!! Half of those times, the "service techs" couldn't figure out what was wrong! As a matter of FACT, I had to fix the car myself and did so very successfully. Chrysler is not worthy of my business. They should take a long hard look at why Toyota is so good. ...a VERY long look!

    April 30, 2009 at 12:40 pm |
  74. robert from st.louis

    I stay in st.Louis. Where ford has left, chrysler is almost gone, and we now know GM is closing up shops now. the way I feel. We took a lost so why can"t they also say take a big lost. lets just let the file for chapter 7 and lose out we did.

    April 30, 2009 at 12:40 pm |
  75. Joe Solomon

    One can only hope that when the leagal exercizes are over that Chrylser emerges from Bankruptcy structured and prepared to be a inovative company free from the past and ready to produce cutting edge cars to compete. No one thinks this will be easy or quick but the opportunity is as great as the risk. there is no way without the organized restucture that any future would be posile.

    Cheers to the workers that keep their job and cheers to President Obama for moving this down the road to create the American dream as a future posibility.

    April 30, 2009 at 12:41 pm |
  76. Joel Littauer

    If the hedge funds' Chrysler bonds are insured through AIG's credit default swaps, and if the hedge funds have, in the end, to collect that obligation from AIG, does that mean that the taxpayers will have to bail out AIG gain?

    April 30, 2009 at 12:41 pm |
  77. Mark

    The Chrysler – Fiat merger is a great deal for the US economy. The only way compnanies will get through this economic down turn is to merge where possible and then grow. Unfortunately people will loose jobs, as I have, I wish my company had secured a merger before closing its doors here in Sandston VA and saved 3000 jobs, but as our economy grows stronger more jobs will be created. We need to ensure that we listen to public needs, curb the greed at the top level and unions need to work with employers and bring in new technologies and methodologies to ensure success.

    April 30, 2009 at 12:41 pm |
  78. Jeremy

    Chrystlar doesn't neede ANOTHER bail out!!! Some company's need to fail to balance things out. One major way Chrystlar can make MORE money on their own is to start refinancing!!! They have all these college grad.'s working for them who apparently haven't figured that out...what are they doing?

    April 30, 2009 at 12:42 pm |
  79. JOHNNY


    April 30, 2009 at 12:43 pm |
  80. Steve Trowbridge

    Re: Chrysler/Fiat
    Didn't Chrysler merge with Dimeler ? What ever happened with that ?
    Will something like that happen again with Fiat ?
    San Antonio, Texas

    April 30, 2009 at 12:43 pm |
  81. Curt Katsis

    Just fyi the Detrit Free Press reports that lenders not willing to agree to deal are Oppenheimer Funds, Perella Weinberg Partners, and Stairway Capital.

    April 30, 2009 at 12:43 pm |
  82. thrillticket

    I listened to President Obama and I totally agree with his decision on the Chrysler issue.I am currently in the market for a new vehicle. And I want to do my part in revitalizing America. As soon as Chrysler's products become more fuel efficient and more reliable,I will definitely buy a Chrysler. Until then, I guess I can continue to drive my bucket , and turn it in then to also get the tax credit.

    April 30, 2009 at 12:43 pm |
  83. carlos h.

    its hard to beleive that chrysler can make better cars with fiat. they had a partnership or a parent co. which was daimler who make very efficient cars such as all the mercedes benz line. we never saw a new product with fuel efficiency. we saw redesigned cars on sport looks and bigger engines and 4×4 good looks and power, but no fuel efficiency.

    April 30, 2009 at 12:43 pm |
  84. Linda

    I am disgusted with all of the bailouts and concern for the Automakers!! Why should they be any different than the little guy out here in the REAL world trying to survive. We get behind with bills and all we get is harrassed with no help available to us. The government should have divided the big bailout money and given it to the taxpayer!! That way we could have pain our bills off to banks, mortgages, and automakers. I have no confidence in the deceit that we taxpayers live with on a daily basis

    April 30, 2009 at 12:44 pm |
  85. Matt

    As a small GM bond holder I think the way bond holders are being painted in the media is ridiculous. The UAW and the gov are trying to cram down huge losses and unfair equity swaps to us. Look at the GM offer, 10% equity stake for our 28b in bonds but the UAW gets for their 20b debt 10b in cash and 39% equity. The gov gets 50% equity for their loans. Why are they treating bond holders like we are greedy evil people? I just want my retirement fund to do well just like everyone else. Why should I not have equal standing. Why is trying to make $$ or profit now demonized?

    April 30, 2009 at 12:44 pm |
  86. Bessie McCants

    I think that was a great move; at least they had one more. Our President made a powerful message that touched me deeply. I don't have a car and I want to buy a Chrysler car, one of those little ones. Who do I talk to about putting in my order? Thanks.

    Bessie in Detroit, Michigan

    April 30, 2009 at 12:44 pm |
  87. Bryan Ellis


    Would 11 billion help chrysler right now during these tough times?? That is what we had in our "rainy day fund" when the Diamler "TAKE_OVER" was allowed to happen!! That fund was set up years ago by none other than Lee Iacocca himself!! My feeling is Diamler dumped that and a lot of other Chrysler money into their company!! In my opinion, we did not get very much if anything out of that deal at all!! Once Chrysler ran out of money (due to their draining) we were for sale to the highest bidder!! ENTER CERBERUS LLC!! Everyone should know that they bought into Chrysler for 9 billion!! That is 2 billion less than we had in our "rainy day fund" 7 years earlier!! When they came into the picture, the Jeep arm alone was worth 10 billion by itself!! As hourly employees, our wages and bonuses are froze at the rate they are now until 2015!! I am sure the price of every other needed item in this country will stay the same until 2015 as well!! Please keep in mind that Delphi is still in bankruptcy today from a long time ago!! Thank you Jurgen Shchrimp and Deiter Zieche!!!! We will all have to wait and see the outcome of all of this!!

    April 30, 2009 at 12:44 pm |
  88. Gerri Pine

    although I would feel bad that some employees of Chrysler would possibly lose their jobs, I also was laid off from my job and in the process my engine on my 2004 Sebring Convertable seized, I had regularly maintain my car and had done my scheduled oil changes. The cost for a new engine was going to be $7200.00. In looking online for a used engine I found thousands of people who had the same experience, engine seized and claim Chrysler 2.7 Liter engine has a design flaw. I called Chrysler and they said they were not aware of any problems with the 2.7 L engines. That I would have to have Chrysler take my engine apart which would cost thousands to determine if their is a engine flaw. I had to sell our motor home to pay off the car ($6900.00) and then sell the car for "as is" for $2900.00. I would never buy from Chrysler again. I hope they get what they deserve.

    April 30, 2009 at 12:44 pm |
  89. Tony

    Your lack of understanding is killing me. Bottom, line, there are rules in bankruptcy just like there are rules in any court of law. The absolute priority rule dictates that senior debt holders are entitled to receive more than unsecured creditors. In its most recent form, the restructuring proposal called for Union members to receive MORE than senior bond holders, violating the absolute priority rule. Union members are the reason for the failed negotiation, not investors.

    Further, investment vehicles have a fiduciary right to investors. If they violate that duty (by accepting less than the best possible deal for their constituents), they can be prosecuted and/or be censured from the industry all together.

    April 30, 2009 at 12:45 pm |
  90. Ryan

    I love listening to the uneducated people here blaming the hedge funds for the collapse of Chrysler. 1st of all isn't Chrysler's fault that Chrysler went bankrupt or are we again not willing to accept responsibility for our failures? 2nd of all it was not just hedge funds that did not accept the deal. None of these companies got 1 dollar of TARP money may I remind you. Most of these companies are mutual funds that many people have money in, that loaned money to Chrysler with a contract that the money would be returned when the bonds matured. These loans are Senior Loans – meaning they are 1st on the credit kist if there is a bankruptcy. So many of you think it is o.k. for Chrysler to give pennies on the dollar to these companies because they were a failure as a company which would cause a lot of the investing public to lose. Let me ask you this, if you owned a car that was financed from Chrysler credit and you couldn't afford it any longer do you think you would be able to negotiate your loan with them for pennies on the dollar. Wake up America!!!!! When did this become the free ride never pay anything back country?

    April 30, 2009 at 12:46 pm |
  91. Rich

    As I understand it the hedge funds that own Chrysler are guarenteed their money because they have insurance.

    From government owned AIG perhaps?

    It seems the taxpayer is on the hook again!!!!!!

    The public gets it twice, a double whammy!

    April 30, 2009 at 12:46 pm |
  92. pat

    Way to go Michigan reporters. CNN couldn't name the three holdouts but the Detroit Free Press does. Thanks Dianne Richardson for your "news contributions" that CNN wanted to know. As I said in an earlier comment ....... CNN needs to go to the source!!!! Let's keep hearing from Michigan and keep our car companies alive! Also, Obama did well to say he supports Chrysler!! Thank You!!!!

    April 30, 2009 at 12:47 pm |
  93. Joe Hill

    If drive a car, you owe thanks to the Big 3. Most of the major improvements in autos were developed by the Big Three. Southerners who feed at the trough of foreign carmakers should look in the mirror. Get paid vacations? Sick leave? Health care? The Big Three and the Unions brought this about. It goes all the way back to Henry Ford offering a $5 dollar a day to his workers.

    April 30, 2009 at 12:47 pm |
  94. Rick R. Desjardins

    I am a proud 25 year Employee of Chrysler in Canada, but I have always concidered us a North American entity. As in the USA we also made concessions twice in the last 9 months to help our great company get through this unfortunate time, which was induced by these Hedge Fund people in the first place. In most of Chrysler's factories, we meet and exceed transplant factory quality and productivity. Somehow that is not getting out to the general public. All my family, and extended family drive our vehicles and continue to buy them. In our community, Chrysler employees are more involved in the community than any other people I know, from coaching sports teams to charity after charity. If this finacial crisis did not happen, would we be in this situation? Absolutely not The public was very happy wiht our vehilces at the time, but now they are not recssion capable. However, Chrysler has always been an inovator and will get through this and adapt to the new way of life, as we always have. We all take pride in our compay, quality and productivity. That needs to be told.

    April 30, 2009 at 12:47 pm |
  95. Desmond Blackburn

    Nothing about this deal is perfect, but you don't have to be an economist to see the domino effect on the lives of real people with familys that will be directly affected by doing nothing. The attitude that suggests that companies be allowed to fail was already tried in the 30's. While the executives went out of business, thousands of Americans filled bread lines across the country. Thank you Mr. President for simply doing something. I'm sure that my fellow Americans directly affected by the auto industry have no interest in standing in anyone's bread line. It good to see that we have a President that actually works for a living.

    April 30, 2009 at 12:48 pm |
  96. Kathy

    Communication of the details is key to building confidence at all levels in any given situation. Prez Obama's communication skills, the govt auto team and everyone in the private sector seem to have negotiated the best outcome possible. The US could not absorb the number of people who would have become unemployed with a total collapse of Chrysler. Personally, I am grateful to all of the people who live on just their base salary WAGES (vs. those who get the bonuses and stock) who gave up something to make this deal happen. I hope the agreement on the table coincides with bankruptcy laws so that the investment firms/hedge fund companies lose more than they would have, had they not been so greedy. I do not expect them to be a not for profit organization, but if you play hardball and lose, too bad, so sad. They should have negotiated to a win-win outcome. Now I hope they lose it all. Here is to hoping the people who want to, or need to, buy a car can get financing and decide to buy American.

    April 30, 2009 at 12:49 pm |
  97. Donna Kosch

    It continues to be so refreshing to have a President make decisions with a great deal of thought, input, and thorough examination of all the sides!!!! I so respect President Obama's quality leadership. He continues to make decisions which are right instead of popular! Love it!!!!!

    April 30, 2009 at 12:49 pm |
  98. Dianne

    So, if the bonds the "Hedge Funds" hold are insured, doesn't that mean they still get "Taxpayer's" money because the policies are probably covered by AIG. Duh?

    Where is Cerberus in all these transactions? Do they still own 80% of the CHRYSLER?

    And, funding to GMAC? Isn't that the same outfit J.Ezra Merkin directed a couple of Billion dollars to Bernie Madoff?

    What a RAT's NEST!

    Google: Cerberus, J. Ezra Merkin & read about it.

    April 30, 2009 at 12:49 pm |
  99. Al

    The pensioners at Chrysler will be introduced to the Pension Benefit
    Guaranty Corp. The bankruptcy court will appoint them to administer
    a revised retirement package. The last time I looked into their reserve
    they had a 20 billion dollar decifit as a result of plan participants scaling back on payments to the fund. The PBGC by the way is a
    quasi government agency.

    April 30, 2009 at 12:50 pm |
  100. Terri S

    With all of the jobs in auto manufacturing leaving the Ohio/Michigan area, there is a major "ripple" effect. Police layoffs; Fire layoffs; schools struggling.
    For the last of us in these sure to turn off the lights on your way out....

    April 30, 2009 at 12:50 pm |
  101. lynn

    They should quit making Chrysler cars. The market no longer supports these large cars. Most of the people that drive the Chrysler 300's cannot even afford the payment on them in the first place. They want to show everyone they have money but their houses are falling down. You drive down any street and there will be a Chrysler 300 in the drive way and the house is a total disaster. Its just another come on like Cadillac and Lincoln cars, most of the people that own them can't afford them in the first place, and then after buying them, they are stuck with these hugh payment and the buyers then have to let other bills go unpaid so they can have their fancy carrs. I say let it go under . What a sorry ass President. Why don't you give stimulus money to the tax payer and not all these big companies to stuff in their pocket. He wants to makes sure he saves those BIg Caaars.

    April 30, 2009 at 12:50 pm |
  102. larry

    so chrysler is to become a foreign auto maker..?????

    April 30, 2009 at 12:50 pm |
  103. David Palmer

    "The car manufacturers can't adapt; let them die off like the dinosaurs that couldn't adapt to climate change..." Or words to that effect.

    Point of order: The dinosaurs didn't die off due to climate change per se; Earth got hit by an asteroid, the climate changed overnight from largely tropical to "nuclear winter" for decades. A lot to ask of any lifeform...

    The American car manufacturers, on the other hand, owe their current difficulties to the Grey Old Visions of the Grey Old Men in charge. Literally: GM hasn't had an attractive color in - ever. Their technology has consistently been at least ten years behind the worldwide industry's "cutting edge" - and even where they were close, they couldn't seem to do it right: Their standard rear-wheel-drive cars' steering, though based on a front end virtually identical to Volvo's, has always been vague, wandering all over the road, though Volvo tracks like a slot-car. Et cetera, ad nauseam.

    The only GM brand that's done things pretty well, from technology to customer service, was Saturn. In the beginning. Then the Grey Old men did their best to "conventionalize" it, phasing out the differences between Saturn and the rest of GM. Now they're dropping it.

    Gee, whatever could have gone wrong...?


    April 30, 2009 at 12:51 pm |
  104. Ray Morgan

    What people fail to relieze,is they now have a vested interest in the Auto,makers .If they fail you lose.

    April 30, 2009 at 12:51 pm |
  105. Paul Davis

    Tony et al.,

    Media outlets and Americans need to engage their minds with a focus on the long-term impacts of government involvement in dictating private sector corporate management. Specifically, the survivability of American businesses vis-a-vis others in an increasingly globalized economy. Debt and owner financing provide rights, which cannot be defaulted on without consequences. The federal government's accountability of bailout funds is shameful; as well as, the conflicts of interest between former corporate leaders now serving in the key federal positions that divy out the cash to their former industry colleagues.

    Chrysler procured for themselves a horrible reputation for quality and value; if they and other American businesses do not suffer the consequences then there is no deterrent!

    The bond holders owe a duty of care to their shareholders; it is ridiculous to suggest that they are not team players and that Americans taxpayers should continue to have billions of dollars used to prop up failing companies.

    The question Americans should be asking is why were the Chinese, Indians, Asians, and Arabs not interested or able to buy out Chrysler. Globalization will break down the barriers between the developing and developed States and government intervention to hold back this force will only lead to counterproductivity.

    Americans need to focus on how best to compete in this more challenging environment instead of crying to Big Brother for a bailout financed by taxpaying Americans that are forced to powerlessly standby and watch the legislative and executive branches direct what has become a runaway train of incompetence.

    April 30, 2009 at 12:52 pm |
  106. Dianne Richardson

    Reading some of the other comments, I must say that at 60yrs old I have never known of anyother working people in my life that want to see the demise of other working people. There use to be a saying that if GM sneezed the rest of the country would catch a cold.

    For anybody that thinks liquidation of Chrysler and GM is all right then they should pay close attention to their own lives. We are all inter-connected.

    Take the self test, start with your own job or line of business.

    April 30, 2009 at 12:53 pm |
  107. janet from OC

    so it appears that the government shsouldn't have given them the billions & billions. It didn't work did it? They should have filed Ch 11 months ago, yes? I would like $1 million please and then file BK a few months later, K? Karma. . look at what the Big Three did to the Tucker car back in the day and the man who invented the intermintent windshield wiper. . they buried them and put "them" out of business. . And in the past 15+ years, they just made cars they gave "them" the most profits per unit. Let the dinosaurs die and new innovative self sufficient creatures rise to the surface. Evolution in the free market. Also what's happening with the X project? Cars that have to have at least 100mpg that can be mass produced? Why isn't the media covering them? Focus on them!

    April 30, 2009 at 12:54 pm |
  108. Jan in Missouri

    Please explain what a hedge fund is. We keep our channel set at CNN and we still don't know what a hedge fund is or how it functions. Thanks, Jan

    April 30, 2009 at 12:54 pm |
  109. Brent

    Hopefully, the bankruptcy courts will be able to adjudicate an outcome that leaves the financial "gamblers" (hold-outs) with significantly less money than the Treasury deal would have provided. It is time that these greedy _______ get knocked-off in favor of the hard working Americans who don't have billions with which to gamble.

    April 30, 2009 at 12:54 pm |
  110. Stanley

    On Chrysler's and (I believe GM's future) bankruptcies –

    I'm amazed how may spokes people for Chrysler or GM revel in their false sensing ideologies that their products are "great." When will they assume the liability for a 'reliable', fuel efficient and an alluring product?

    I purchased a brand new Honda CR-V last year. Within three months I received two personal "live" telephone calls specifically asking me how my purchase and driving experience was thus far. Then two weeks ago, I was contact again, asking me how I would make the vehicle better. I gave them ten solid suggestions, the main one on fuel savings and efficiency even though the vehicle gets relatively excellent mileage. This is forward thinking, this is assuming the liability for an ever growing and great product and company.

    Capitalism without bankruptcy is like Christianity without hell. We need to reconcile these truths by getting back to the fundamentals of what once made our domestic car manufacturers strong. But I'm afraid it is too late. What would be wrong with Honda and Toyota becoming strong in the North America markets, employing those who have lost the domestic car war? Jobs are jobs, right?... and everyone wants to work for a true and honest winner.

    April 30, 2009 at 12:55 pm |
  111. stuart bellant

    a point that I haven't seen mentioned in discussions of the demise of the American auto industry is the high cost of repairs and parts at the dealerships of the American brands. Just as bad is the attitude ingrained in these businesses. An example was when I took my five month old Ford F-250 into the dealer for a warranty repair of a leaking rear axle seal. I protested when told it may be as long as three months before they could schedule the repair. The service manager's responce was "What are you worried about it's under warranty"? Of course the fact that I may be driving when the wheel burned off due to lack of oil haden't occured to him. My responce got the truck in and fixed that day. I wonder what Ford headquarters would have thought of that dealerships wait and pay more latter attitude.

    April 30, 2009 at 12:56 pm |
  112. Marnie Weeks

    Smart deal giving everyone a fighting chance.Standing up to greedy hedge fund guys was terrific. US needs manufacturing base. "Let 'em fail" folks are misguided by Obama political oponents.

    April 30, 2009 at 12:57 pm |
  113. Jeremy

    Making fuel efficient cars is great BUT cars do not run the United States or the world. TRUCKS do! Iam a contractor and i can't go to the lumber yard in car that gets 35 miles per gallon and load hundreds of pounds of wood, cement, ect.... The auto industrys need to make more Fuel efficient Trucks. Also when cargo is delivered across the U.S. they are transported by big trucks. This is not rocket science. Something needs to be done!

    April 30, 2009 at 12:57 pm |
  114. Ray Morgan

    After 9-11 Three American auto companies each donated 10 million dollars to help in this disaster.Honda,Toyota,Kia,BMW,Mercedes,Nissan all subsidized companies gave NOTHING.Are you driving one of their cars,shame on you.Remember Pearl Harbor?

    April 30, 2009 at 12:58 pm |
  115. David

    These are questions that came to mind after Poppy Harlow talked about Chrysler sales with Heidi.

    What is Chrysler's share of the market in small towns and small cities? Maybe overall market share is low, but in various contexts, Chryslers do very well. For instance, there are lots of Chryslers on the roads here. And lots of Pontiacs and Saturns too. Small city in Indiana. So when looking at sales, how specifically are people looking?

    How can it be a good idea to let a major brand go? That's letting go a company and production that is already set to crank up when needed.
    Isn't this a special consideration in auto manufacturing?

    April 30, 2009 at 12:58 pm |
  116. Ryan


    You understood wrong. 1st the credit default swaps are astronomically priced for the insurance on Chrysler to make it not worth it and 2nd you do not need CDS if you are a Senior Debt holder because you are 1st in line in the case of default. I am Glad Obama moved many of you so much. I am sure you pay a lot of taxes and have an abundance of money invested. One of the funds that owns Chrysler Senior Debt is XOSAX, hardly a hedge fund. Its one of the most respected mutual fund companies there is, but I guess you feel that the investors in that fund should take pennies because Obama said so. Do you know how many elderly people live off the yield on funds like these?

    April 30, 2009 at 12:58 pm |


    April 30, 2009 at 12:59 pm |
  118. Susan Quillin

    Okay, I hate "bailing out" anything with taxpayer dollars, I hate those who put personal greed ahead of "promoting the general welfare." And this merger/bankruptcy re-organization may prove to be wrong. BUT, I think there are lots of Chrysler workers and suppliers out therre, our fellow Americans, who are breathing a big sigh of relief as to how they are going to pay the rent or mortgage next month. And that's GOOD news. We just called our local Dodge dealer to get the best deal on trading in our aging Ford truck. We're still proud to be, and support, American.

    April 30, 2009 at 1:00 pm |
  119. Bessie McCants

    Oh, I forgot to say, I graded the President with an A. The United States is our country and we should do all we can to save our car companies.

    April 30, 2009 at 1:00 pm |
  120. Bill

    Cody, thank the UAW for the overpriced cars. Where else can you make alot of money for screwing on wheels on a car. Chrylser should have been broken up and moved into Ford and GM we dont need 3 auto makers in the US. Hopefully the Bond holders will hold up the bankruptcy and break the UAW some more!!!

    April 30, 2009 at 1:01 pm |
  121. Bill

    Once again CNN has shown that it will pick a side and attack the other. Instead of fairly reporting on all sides of this story you pick several sides to defend and try to make the small banks/ hedge funds the bad guys. Well you did report that they were asked to give up 68% of their investments while others still were being paid over 50% of their investment. You fail to report that they had insurance on their positions that would pay out 100% to them as long as they did not agree to the 32% the government offered. The hedge funds did say they were willing to give something away but not 68%. Further more you see that Chrysler is still in business and the EVIL HEDGE FUNDS did not make them go out of business. I understand that this affects many many people across every demographic of our country, but this problem did not just happen. I worked for Chrysler and know that they did not make adjustments needed over the last 15 years because they tried to make everyone happy paying ALL workers (white and blue colar) too much. They made bad business decissions as well. If I were to do that in either of my business ventures now I would be expected to go out of business. But since there are political interest involved that could hurt people in Washington DC and their futures in Congress the Auto business will be held together with our tax dollars. I would just appreciate CNN telling the entire story instead of picking what they think will make most of its viewer happy. Lets be honest and ask that auto worker if he would take 32 cents on the dollar instead of 100%. This is America and if the hedge funds did not invest over the past 10 to 15 years maybe this would have happened 10 years ago. Oh that means the executives of Chysler and the auto workers would have lost their jobs 10 years ago. CNN PLEASE TELL THE ENTIRE STORY and not have your ancors try to be heros acting like the hedge funds are the only people to blame in this story. Joe Johns is not the same reporter he was when he was with WRC in Washington.

    April 30, 2009 at 1:01 pm |

    I will buy a Chrysler if they can do a hydrogen vehicle. Otherwise, I am going to wait for Honda to expand their hydrogen car leasing program from CA. Honda's vision includes a Home Energy Center that will refuel your car and run your home with a HUGE reduction of CO2. Can Chrysler come up with that? I doubt it. I'd rather send my dollars to Honda who is leading the pack.

    April 30, 2009 at 1:01 pm |
  123. Cliff

    I am no auto expert and I am no bank CEO,I am just an average working man who wants to keep his job! I can 't help but wonder how much money the banking industries and the auto industries have invested in foreign companies and foreign countries only to gain cheaper labor and thus more profit for them while totally forgetting about americans.It seems they only need us when the going gets tough and they need our tax money to "BAIL THEM OUT".
    What kind of financial shape would these companies be in if they had kept their focus on the people that made them what they used to be?
    We are paying taxes to our local government only to have vehicles such as ambulances and fire trucks built in Mexico by trucking companies.Something is very,very wrong with this picture!!!

    April 30, 2009 at 1:01 pm |
  124. janet from OC

    so it appears that the government shouldn't have given them the billions & billions. It didn't work did it? They should have filed Ch 11 months ago, yes? I would like $1 million please and then file BK a few months later, K? Karma. . look at what the Big Three did to the Tucker car back in the day and the man who invented the intermintent windshield wiper. . they buried them and put "them" out of business. . And in the past 15+ years, they just made cars they gave "them" the most profits per unit. Let the dinosaurs die and new innovative self sufficient creatures rise to the surface. Evolution in the free market. Also what's happening with the X project? Cars that have to have at least 100mpg that can be mass produced? Why isn't the media covering them? Focus on them!

    April 30, 2009 at 1:02 pm |
  125. Ryan

    Obama's approval rating is 55%. 45% of Americans pay no Federal Income taxes. I wonder why his approval ratings are so high.

    April 30, 2009 at 1:03 pm |
  126. Johnny

    I get tired of people saying " If you want to buy foreign, move out of USA".. now lets get real people.. We buy products (weather it is an auto or an hdtv) because we want quality.. When I go to look for an HDTV, I personally look at Sony for 1 reason, one of the best. I have a cell phone that is made in Korea/China ( Kyocera), I own a Playstation 3 – (Japanese) Which I am sure many of you also have and think it's awesome like I do.. The point I am making here.. We don't set out to buy these products based on where they are made, we buy them because they are very good quality. Same as vehicles, vehicles are not cheap anymore, and when I set out to look at a vehicle, I want my money's worth. German cars ( Volkswagen, BMW, Audi) are top of the line, Japanese cars( Honda, Lexus, Toyota) are awesome.. We all want good quality. Now the fact is, you can debate this all you want, People are buying foreign cars all over the USA for 2 reasons, foreign cars have a better reputation and they last longer. I personal (Hope) that the U.S. auto makers get their butts in gear and actually make vehicles as good as the Japanese, I really do.. but the American cars do not last like the Japanese cars do.. I love Honda myself.. Many people do.. I see foreign cars all over the USA, and people will keep buying foreign until or IF US auto makers start making the cars more fuel efficient ( #1 issue) – Stop making SUV's!!.. and make these cars so they last longer and don't have to keep spending $1,000 + in repairs.

    April 30, 2009 at 1:06 pm |
  127. Ray Morgan

    I dare say most of the negative comments about American cars come from people who don't own them and never have.Their negativity comes from their own humiliation of trying to justify why they drive one.Embarassed ,you should be.Lawmakers included.

    April 30, 2009 at 1:07 pm |
  128. BIGMIKE


    April 30, 2009 at 1:08 pm |
  129. Lance Deaton

    As an asset management consultant for the auto industry, today's bankruptcy filing did take me by surprise somewhat. I went to bed expecting Chrysler and it's investors to reach an agreement. Obviously, certain self -interested parties have changed Chrysler's course.
    What surprises me most is that no one is really mentioning the fact that Cerberus (Chrysler's and GMAC's parent) is going to emerge from this deal smelling like a rose. Cerberus largest competitor in automotive financing was Chrysler Financial. This company being no more, GMAC now emerges as the largest in house automotive financing arm. Cerberus will able to wipe out a ton of assumed debt, spread out it's liability, get infusions of interest free loans from the government, and tons of new technology that they won't have to pay for. While not the ideal way to make good on their initial investment in buying Chrysler, they are going to come out of this in pretty good shape. Feel free to read more on my blog,

    April 30, 2009 at 1:08 pm |
  130. Mark

    Why is it that American companies are always playing catch up with Asian / Orient companies? We are a super power with a talented workforce but seems that those in charge can not implement change quickly enough to stay ahead of the curve. Where are our technology leaders, where are our CEO's and forward thinking engineers etc...are they stuck in a rut...profitting and sitting back on their heels...shame on them

    April 30, 2009 at 1:11 pm |
  131. Rich from Philly

    Fiat and Chrysler merging?

    Both Fiat and Chrysler are deep in debt (billion$) and failing. History shows when 2 (or more) failing auto companies merge, it only leads to the unhealthy combined company failing.

    Think, Studebaker + Packard, Nash + Hudson, AMC + Jeep, check automotive history and you will see dozens of similar examples of the combination of 2 or more failing automakers merging only to make a bigger failure.

    The hedge funds don't care to make a deal or take a haircut because most of their investment is insured.

    By AIG?

    AIG is now owned by the US Govt. so I guess the taxpayers and workers get screwed again either way.

    April 30, 2009 at 1:12 pm |
  132. Ray Morgan

    'Trying to justify why they drive one' foreign car that is.

    April 30, 2009 at 1:15 pm |
  133. Claude

    To Whom It May Concern:

    While this seems somewhat selfish, I hate the idea of being taken advantage of. I personally went out with the intention of purchasing a new car this month not just to help the economy but to get rid of my 14 year old car, 95 Isuzu Rodeo. It still runs great and although it has had it problems, fixing it is cheaper than buy new.

    But, none the less I figured at age 51 its time I splurged on myself after thinking practical when purchasing cars for the last 33 years. I took my time and researched and found 2 cars I would love to own. Ya see, I have been a classic car lover all my life. I had a great car, 69 Cougar XR7. I purchased it from original owner about a year before I got married and fully intended to restore it to its original glory but with new engine to meet today’s standards. (I do care about the environment) As fate would have it, I was just starting a new family and could not afford to keep it and pay for food and mortgage at the same time. While I owned it outright but insurance hurt our finances. New wife and baby and one on the way tough choices must be made right. I sold that car, settle for a Nissan Sentra and eventually bought the Rodeo for my wife when the new baby came along, that’s right, an SUV – eat me Eco activists. It was safe for my kids and my wife loved it.

    Ever since then I promised myself that someday I would get another classic or a new car resembling a classic. Well this year the new Camaro and Challenger came on the market and I was ecstatic. Beauty, power and fuel efficient. After doing my homework I went to both Chevy and Dodge. Neither of them are willing to negotiate, honor the MSRP and oh you’ll love this, even added additional profit they try to describe as "Market Adjustment" that hike the prices of their cars out of what we Americans call reasonable pricing. With Chrysler now filing for bankruptcy, what did they expect would happen? Do they think for any reasonable amount of time that the American public will once again feel sorry for their inability to run a company and pull a profit? Did they believe we will blindly just hand over 40-45 thousand dollars for a car and say thanks? We may be somewhat easy but we are not stupid. The days of concentrating on making the buyers feel good about purchasing items they want are over. The original way of running a service business and doing business is over. While I understand supply and demand very well, I also understand greed even better. The big 3 must change their tune and do what’s right for the customer and renew themselves with the idea that while they may lose some profit on each sale, they can easily make it up in volume, that’s economics, that’s staying in business. That will bring the American public to buying in this country. They can cry all they want but they did this to themselves. Some much good stuff out there but they live in the past and take too long to bring the new technologies to market. Japan does it overnight, we take a decade. Then try to tag “Made in America”. Come on big 3, get a real life.

    Anyway, I have once again given up on my dream and gotten over my midlife crisis mode and have went back to being in practical mode. I decided it’s best to save and not spend. The way big business is running this country in the ground I can’t trust ever living from paycheck to paycheck again. Spending 4-5 hundred a month in car payments is ridicules, I don’t care how many months they drag it out. This whole payment thing we been living with for years were all just a ploy to put us in the mode that it is expected for everyone to pay a car payment every month, bull!

    Tell me why Toyota can turn a profit in a down market with out your excuses, Unions, costs of steel, BAD INVESTMENTS, bonuses for driving company in the ground…etc, etc. etc…where’s Lee when you need him! By the way, how many people do you think are buying into that, profits are down whatever a percent does not mean out. It just means you have to tighten your belt like individuals and small business do, it doesn’t mean trash it.

    It is absolutely ridiculous for them to be charging the dollar amounts they are charging and for what? We bail them out and have to pay for their mismanagement. They lost track of what the American people want and need.

    I say good riddance. Ever since the Car companies, the Mortgage brokers and the banks put our country into a recession all they can do is continue to ask for more and more, so when does it end? Now! How simply arrogant to blame the former President for this. He wasn’t in charge of Chrysler or Chevy or Ford for that matter. For any of those companies to think we can feel sorry for them and that we owe them something, come on get a real backbone and own up to your mistakes and get back on track or go away. Maybe now when you are at your lowest I can spend the 30,000 I have been hording to get a decent car, but not with you Dodge or Chevy, you had your chance to get me to come back. Last 3 cars I purchased were foreign and I don’t think I’ll ever go back to trusting “American Made Cars” it just doesn’t hold the meaning it used to.

    And to the mortgage brokers and Banks that drove us into the dirt, shame on you! What did you think would happen when you give a loan for 110 or 120% of the value of a home? You deserve to get hit hard and own up to the same responsibility the car companies should be held to. I am tired of being penalized for paying my bills on time. I'm one of the good guys acting responsible like not caring 10,000 or 20,000 in Credit Card debt and making my mortgage payments. Yet you have the balls to chare me more and blame it on the economy. I will not own up for mistakes others made, I work hard for my money and I am just one paycheck away form losing my job just like everyone else.

    Fiat, one suggestion; do what Toyota did and tell the unions to shove it. They are also a big part of the problem. They never seem to understand that their greed is equal to that of the corporate greed. You can't disguise it by stating you are doing it for your workers anymore. Your involvement with and in politics has helped influence Politian’s away from what they know to be right and they too have lost all common sense. Socialism is not the answer; you need to pull a Wal-Mart. They only reason some corp. giants are complaining about them is profits are down and it’s all Wal-Mart’s fault…well boo hoo, get a life.

    Good bye Chrysler and good riddance. The only thing bad about this whole deal is the number of people you are putting out of work, including the sales people who rely on sales to get a along and I have to talk to buy a car, well here’s one sale they won’t get because of you. Try not to hurt anyone on your way down, think about it, you are knowone without us, the workers, the buyers, the real investors!!!

    Eddie B

    April 30, 2009 at 1:16 pm |
  134. Gregg

    Hi Tony,
    Everyone and every business that has a stake in Chrysler has made major concessions, especially the employees, except the 3 greedy hedge funds. The public has a right to know who these companies are so anyone with money in them can pull it out. This type of greed got us into this economic mess and must be cut out like a cancer for our country and world economys to turn around.

    April 30, 2009 at 1:17 pm |
  135. Ashley

    Chrysler is an American icon. The history of Chrysler helping the American military to the present. Autoworkers donate funds for troops overseas and veterans. Chrysler and autoworkers donate tremedous amount of money, that are never recongnized.
    Chrysler does the research and development. First, Chrysler takes the chance of developing something new. If, the development does not work, Chrysler takes the hit. If, the platform engineering works, then other automakers use the idea.
    Kerkorian was the threat, Daimler was the alternative, Future with Fiat is the Chance.

    April 30, 2009 at 1:18 pm |
  136. Allan M. Ortiz

    I admire Pres. Obama in rescuing the Chrysler (and GM). However, the big 3 will only succeed if they will produce quality and efficient cars that the american people will patronize. Bottomline-SALES.

    April 30, 2009 at 1:19 pm |
  137. Jerry Stowers

    I think Obama did the right thing,not onlyf for those who still work for Chrysler but for those that are retiree's. I work in the Car Business, I own a Late mode used car lot. America depends daily on the auto industry as a whole. You buy the cars, but the parts come from other sources, other companies, other people whom don't work for Chrysler, GM ect. They make thier checks from making parts for the Big 3. They spend thier monies at the Walmarts, shops ect, whom those employess spend thier money on the same, it's an endless chain. To let these company's go would put not only hardship on those who work at them, those whom employ them, but to everyone else on the chain. The tax dollars they would lose from them. If you don't like paying taxes now, just think how much more you'd pay because they wouldn't have that money coming in. People like me need the used vehicles that the customer trade in to make our living too. Face it American, we are a car nation. That is what keeps us going everyday! I still believe the oil people is what got us in this shape to begin with. Gas is less than $2.00 right now, it doesn't cost them anymore or anyless to make it. Greed is what happened to our Country, and having Bush and Cheaney Oil man in as president didn't help. That is where this all started as far as I'm concerned. Be thankful that the new president has the insight to make right the wrong! Thank you President Obama!

    April 30, 2009 at 1:19 pm |
  138. Mike Seyedian

    I approve of how the situation is being handled by the Obama administration. He is sending a message to the world that capitalism can be flexible; capitalism has a heart, and those who would use the system to their gluttonous profit at the expense of millions are a minority and they are looked down upon by the sympathetic majority including the President.

    April 30, 2009 at 1:22 pm |
  139. Matt

    Why does AIG get 170b with no strings and the autos get 15b with all kinds of rules. The gov could have bought all the auto debt from Crystler and GM for 55b. All of it. They would be debt free and that would have been at a 100% payout. So the reality is they could have done this for like 30b! All of the debt gone...And they make something. You can reposes a car but not an insurance policy. This whole debacle is a huge joke. As a bond holder I am meant to feel greedy or unamerican for wanting my money back. I didn't invest in GM I LOANED THEM MONEY. Huge difference.

    April 30, 2009 at 1:22 pm |
  140. Chrysler worker

    The 3 Hedge Funds that would not bend or deal with The president. Chrysler, etc which were mentioned but not named are:


    This is the info that Anchor Tony and his crew of editorialist and specialist were searching for!

    April 30, 2009 at 1:22 pm |
  141. Public D

    I thought the post-President's Announcement panel to be a joke. If Christine Romans doesn't know the investment / hedge funds in question, why is she considered an expert? I have the sinking suspicion that she (and the other panelists) did know, but were playing dumb out of some banking-minded prejudice. That's the last thing we need from our news sources. Anyway, here they are:

    Give 'em ring, Tony, Christine.

    April 30, 2009 at 1:29 pm |
  142. Ray Morgan

    Not the hedge funds fault?BULL!!!! Greedy Hedge Fund investors and greedy bankers put this country into a financial tailspin causing the present economic meltdown.Can't sell cars when the greedy hoard the money from potential buyers.

    April 30, 2009 at 1:32 pm |
  143. Troy Halstead

    Reading the post clearly is crying the same underlining fact. Regardless of this outcome the relief just isn't enough nor fairly provided to those "Americans" in Clear Need. We are spinning out of control by our socialist new government cranking the throttle in hyper gear. CNN you can spin it how you like! but how the heck does this benefit me in this time?

    April 30, 2009 at 1:37 pm |
  144. Dan Brennan

    I work for a very successful vendor who partners with Chrysler and 12 other major world wide auto manufactures. Working directly with the Chrysler Mid Atlantic Business Center I have seen the sacrifice, commitment, resolve and determination Chrysler employees have demonstrated during these difficult times. I have read a lot of "doom and gloom" in the media and maybe I missed it, but Chrysler sold 100,000+ vehicles in March. Perhaps we should report on more positives these days with our American car industry. Thank you President Obama and your team for your position on Chryslers future survival and growth. I would really like to know who these hedge funds are that put themselves ahead of the good of the American workers and their families with their greed. If your not familar with Chrysler, Dodge, or Jeep check one out at your local dealership.

    April 30, 2009 at 1:41 pm |
  145. Bill T.

    The car industry is of course always evolving, but traditionally the big three have always been a little slow to adapt. With an energy crisis, serious environmental concerns, and a collapsing economy, their traditional approach to change is driving their demise. They are used to leading the industry. When they (get around to) change, the world automotive industry changes. That is no longer the case. Toyota, Honda, BMW are the leaders now, but apparently the big 3 didn't get the memo. Would I buy a Chrysler specifically? Hmmm. Here are three questions I would ask. 1. Do they have an electric car or a gas/electric hybrid that gets at least 50 miles to the gallon? 2. Do they have a history of building one of the most reliable vehicles on the road? 3. Do they have at least one line of vehicles that are inexpensive to buy and operate? If the answer to #1 is no, then they are too slow in reacting to change and show a lack of vision. If the answer to #2 is no, then they demonstrate a lack of commitment to quality. If the answer to #3 is no, then they demonstrate placing corporate greed above consumer value. If Chrsyler's answer to these questions is No, then radical and rapid change is needed. The time for a gradual fine-tuning approach was about 10 years ago. Chapter 11 would provide a fresh start and allow Chrsyler to make these needed changes quickly. If that fails or the company fails as a whole, Ford could always take over the Plymouth name, and GM can have the Dodge name. At least that way, the names live on, some of the Chrsyler folks can keep their job, and the remaining big '2' will be in a better position to compete with each other and the world.

    April 30, 2009 at 1:50 pm |
  146. Ryan

    Again, all 17 companies that rejected the crappy offer were not hedge funds and none took TARP money. If you had your money in Oppenheimer's Senior Floating rate fund – XOSAX – which is a very respected 3 star morningstar mutual fund you would not be blaming them. They loaned money to Chrysler. Chrysler does not want to pay them back. Bankruptcy court will solve that. Senior Loans work this way and they will recieve for their sharholders optimum payout. I do not see why some of you think it is Oppenheimer's fault. Chrysler did this to themselves. I guarantee that if the big banks did not take TARP money they would not have caved to Obama either. A lot of you have no concept of America and think that these companies for some reason should be obligated to take pennies on their money they lent. What kind of crap is that.

    April 30, 2009 at 2:04 pm |
  147. Chrysler worker might want to note that the Oppenheimer Funds hedge fund for Chrysler that wouldn't budge is insured by no other than whom???


    April 30, 2009 at 2:09 pm |
  148. Ryan

    Lets just say that you took no TARP money. You loan me 1,000,000 and I pay you back 100,000. Remember you received no TARP money. Also you had a 1,000 people give you the money that that you loaned me. I gave you you 4 paid off house as collateral for this loan. Now I decide I can't pay you back the loan but also Obama and I decide that I are not going to allow you to have the collateral (4 houses). Sorry too bad so sad. Do you honestly feel that is right. Oh yea now go tell your friends that gave you the money to loan money, O well. This is not these companies money. It is their shareholders.

    April 30, 2009 at 2:24 pm |
  149. terri stahl

    in regard to the reconstruction of chrysler i personally believe that mr.
    nardelli and his entourage should step down and the previous
    ceo mr. tom lasorda and his entourage should take over with a
    lee iacocoa consultation.
    cerberus capital management lp ( hedge funders ? ) investing firm which purchased chrysler in 2007, placed mr nardelli and his entourage at the helm of the corporation and that is when you know
    what broke loose. bottom line, cerberus purchased chrysler, ate up
    the assets only to sell portions of chrysler to other interested purchasers.
    now that the federal government is involved and i believe the government knows who the hedge funders are ,will chrysler survive?


    April 30, 2009 at 2:40 pm |
  150. raul

    I am and live in canada since the past 13 years. I have been amazed to see how many NON-AMERICAN cars are on the streets here in canada and when i started hearing people getting laid off , on and off ( plants getting closed others laying off employees etc.) over the years, I have heard one comment that sadly made me laugh: and GM employee telling canadians to buy american.
    It made me laugh because most of us have had an experience with an american car:
    the japanese competition is getting so affordable and reliable and now with the recession where do you think people will continue to turn to? JAPANESE.
    i walked into a hertz rental company at the toronto downtown main train station location and walked into the HERTZ fleet to find out that 90% of the cars rented there have switched to TOYOTA – JAPANESE. it did hurt my heart because this not only will affect our north american people but it is affecting our economy Big time.
    NORTH AMERICAN MANUFACTURER have failed to be competitive and have relied too much and too long on tax payers money. it is time to change the leaders of those company and get engineers that knows how to be competitive so they can bring back the symbol of our lovely economy back: our american cars.

    April 30, 2009 at 2:43 pm |
  151. jbloggs

    Basic automobile technology hasn't changed in a hundred years. We should all be riding in flying cars by now if they bothered to advance the technology, but no, "let us keep the lemmings (aka general public) in the dark ages so that we can line our pockets" IS the attitude of ALL car manufacturers, not just Chrysler and now they will suffer the consequences for their lack of forward thinking.

    April 30, 2009 at 2:43 pm |
  152. Ryan

    Chrysler worker,

    You have no idea what you are talkin about. #1 it is not a hedge fund. #2 they do not have a CDS insurance on Chrysler. #3 it is not Oppenheimer's money it is sharholders of the mutual fund run by Oppenheimer. Just like you may have mutual funds in your 401k – same thing. Before you speak why not read the prospectus for XOSAX.

    April 30, 2009 at 2:59 pm |
  153. BARB


    April 30, 2009 at 3:13 pm |
  154. David Palmer

    Mr. Bellant mentioned the high cost of repairs. This has been going on for decades, but it's been getting worse on a level the public is unaware of.

    In the early '60s, a turn signal lamp unit was just that: a simple light housing. If it rusted out or failed, it would be replaced with one just like it, for a few bucks. The local dealer and his mechanic also made a few bucks for the labor involved in replacing it.

    Now that lamp unit is just one element of an elaborate modular component which comprises most of the outer corner of the fender, including an integrated wiring harness, and complex weatherseals. It costs from several hundred dollars to over a thousand. It snaps into place like a piece in a Chinese puzzle, which means the local dealer gets stiffed: virtually no labor - all that money goes back to the manufacturer.

    And despite this, the manufacturers have managed to go broke....

    April 30, 2009 at 3:39 pm |
  155. David Palmer



    It's rude. Please learn to use your caps key.


    April 30, 2009 at 3:40 pm |
  156. Gerri Pine

    When I was laid off of my job, I was facing financial stuggles, my engine on my Chrysler blew because of the problems Chrylser was having with the 2.7L engines, which they would not take responsibilty for. I was told I would need to pay $7200 for a new engine, I still owed $6900 on the car balance, I asked Chrysler financial if they would give me a break on the balance owed. Guess what their response was. NO, not one penny would be forgiven. I had to sell our motor home to pay off the balance of the car and sell my car for $2900. I took a big loss, no one at Chrysler gave a damm for my situation. No bail out for me. So why are they so surprised that these hedge funds would give them a break and take less than what was lent to Chysler. Whats good for the goose is good for the gander.

    April 30, 2009 at 3:47 pm |
  157. Chrysler worker

    well Ryan, apparently I'm not the only one that has this information.

    April 30, 2009 at 4:43 pm |
  158. Ryan

    Chrysler Worker,

    What information the stuff that you get from CNN or the actual true information. The information that you get if you actually research the facts rather than believe the sound bites the media gives you.

    April 30, 2009 at 5:28 pm |
  159. Ryan

    Chrysler Worker,

    Let me just say that I am not bashing you or anyone else that does not have the facts and are just going by the sound bites. All I know is what the facts are and what you are hearing is not the facts. Just check out XOSAX. Go look at their holdings and you will see. Oppenheimer does not own the fund, they manage it for the shareholders. Surely being a Chrysler worker you have mutual funds in a 410k. In those funds don't you want the fund manager to do what is best for yourself the shareholder. They loaned money to Chrysler and Chrysler and Obama do not think they should get all their money back. How is that American? They loaned them money long before our tax dollars did. Believe me I want my tax dollars back too but why should people have to compromise on their money they loaned to a company if they do not have to. Chrysler did this to themselves and unfortunately you are directly involved. The reality of it is Capitalism works this out not Obamanism.

    April 30, 2009 at 5:36 pm |
  160. Ryan

    Press Release

    Press Release Archive

    OppenheimerFunds, Inc. Statement on the Federal Automotive Task Force’s Plan for Chrysler

    April 30, 2009
    OppenheimerFunds, Inc. shares the goals of all Chrysler stakeholders seeking to strengthen the automaker.

    As a member of the Chrysler creditors’ steering committee, OppenheimerFunds represented the interests of the thousands of small investors and their retirement plans that make up the majority of our mutual funds shareholders.

    At all times in the negotiations, OppenheimerFunds sought fair treatment for the shareholders of our funds and we were willing to make very significant sacrifices to reach an agreement. Along with more than 20 other secured creditors, OppenheimerFunds rejected the Government’s offers because they unfairly asked our fund shareholders to make financial sacrifices greater than those being made by unsecured creditors. Our holdings in secured Chrysler debt are entitled to priority in long-established US bankruptcy law and we are obligated to our fund shareholders to support agreements that respect these laws.

    Contact: Bruce Dunbar, OppenheimerFunds, Inc. 212.323.0291

    April 30, 2009 at 6:01 pm |
  161. BARB

    David Palmer I am sorry if you were offended by my caps lock key but I was trying to shout it from the rooftop...America needs to wake up before we are completely owned by foreign countries, buy American keep our hard earned money here working to better the United States of America. just in case you haven't heard General Motors has a new 100,000 mile warranty that i bet would cover your elaborate lamp American Thanks!!!!!!!

    April 30, 2009 at 8:19 pm |
  162. Bill

    How is the Chrysler bankruptcy and plant closings going to affect the unemployment rate? There are 6 states affected with over 20 plants closing around Lake Erie in the north. This expands far from Detroit now and carves deeper into the stability of the midwest. Will this put our unemployment rate into the high double digits now? Foreclosures and bankruptcies are going to skyrocket further than the have in the first quarter of this year. It is going to be very interesting to see the numbers for May and June.

    May 1, 2009 at 5:11 pm |