Obama says Chrysler to be stronger after bankruptcy

MarketWatch ^ | April 30, 2009 1:28 p.m. EDT | Robert Schroeder & Shawn Langlois,

[Ernest_at_the_Beach]

Process will last between 30 and 60 days, White House estimates

WASHINGTON (MarketWatch) -- President Barack Obama said Thursday that Chrysler LLC will be tossed into bankruptcy to ease its crushing debt burden, a move taken after some of the company's key creditors rejected a sweetened cash offer.

"The necessary steps have been taken to give one of America's most storied automakers, Chrysler, a new lease on life," Obama said.

Obama spoke at the White House following the completion of a deal with Fiat (IT:F: news , chart , profile ) giving the Italian company a beginning 20% stake in Chrysler that would rise to 35% as milestones are reached.

'No one should be confused about what a bankruptcy process means. This is not a sign of weakness but rather one more step on a clearly charted path to Chrysler's revival.'

— President Obama

An administration official said he expected Chrysler's bankruptcy, after a filing in New York, to last between 30 and 60 days and added that the process won't affect Chrysler's day-to-day business of selling cars and covering warranties.

Obama sought to dispel any notion that the filing meant Chrysler had one foot in the grave.

"No one should be confused about what a bankruptcy process means. This is not a sign of weakness but rather one more step on a clearly charted path to Chrysler's revival," said Obama.

Messy process seen

But David Silver, an auto-industry analyst at WStreet.com, said that the process, contrary to government assurances, will likely end up being messy.

[Ernest_at_the_Beach]

Obama blasted hedge funds for turning down the offer.

[Izzy Dunne]

Hmmm. I've been looking at ways to make my business stronger.

Maybe I'll try it!

[Buckeye McFrog]

he apparently believes that we would all be stronger after a bankruptcy (and is doing his best to arrange that)

[mbynack]

So what was the purpose of giving them billions to keep them out of bankruptcy? Exactly what did Obama buy with our money?

[E. Pluribus Unum]

Hell yes it will be stronger.

You'd be stronger too if the government started shoveling money at you instead of taking it from you.

[Bloody Sam Roberts]

Hey...it worked for them once before. Go fer the two’fer. What the hell. It’s only our money.

[jeffc]

'No one should be confused about what a bankruptcy process means. This is not a sign of weakness but rather one more step on a clearly charted path to Chrysler's revival.' — President Obama

And, of course, when this doesn't prove true, noone will care, as noone will remember he said this. It will go down the memory hole and vanish, and he'll deny he ever said it, or he'll say the word "expected" was before the word "revival" in the original, but was dropped, and noone will be able to prove him wrong; you know the press won't even try!

[anniegetyourgun]

A lying lie from the liar.

[Lurker]

to last between 30 and 60 day

This mess is going to be in the Courts for years at least.

L

[nascarnation]

When folks figure out they are going to subsidize lush pensions and platinum benefits for UAW members, there may be a few more tea parties.

[nascarnation]

Delphi is 3 years and counting on Chap 11.

[libbylu]

I will never buy a car from the government.

[Reeses]

Obama says Chrysler to be renamed Muslym Motors after bankruptcy

[Old North State]

According to initial reports, Fiat is not putting any money into this deal, none. So all the money put into this deal is taxpayer money. No money from Fiat, no money from The union, only forgone payments they could not have gotten anyway, just the taxpayers. The bond holders get shut out.
So on top of the billions they have already run through Chrysler get another eight billion from the taxpayers, then what?

[JoeGar]

What dummy would buy a car from a UAW-managed company made by UAW workers?

[Ernest_at_the_Beach]

Oh,....I am sure they will be special green cars designed by Nancy and her friends.....

[Ernest_at_the_Beach]

ping.

[Oldeconomybuyer]

Chrysler Board of Directors...

[Ernest_at_the_Beach]

ROFL!

[potlatch]

Thanks Ernest, that’s funny!