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Lee Iacocca losing pension, car in Chrysler bankruptcy
Reuters ^ | 5-29-09 | Emily Chassan

Posted on 05/30/2009 1:34:43 PM PDT by Justaham

NEW YORK (Reuters) – Lee Iacocca, the car executive credited with saving Chrysler from bankruptcy in the 1980s, is to lose a big chunk of his pension and a guaranteed life-long company car due to the U.S. automaker's bankruptcy filing two decades later.

Chrysler CEO Robert Nardelli told a U.S. bankruptcy court on Thursday that Iacocca's pension would be among the obligations Chrysler will no longer have to pay if it gets bankruptcy court approval to sell itself to a "New Chrysler" to be owned by its union, the U.S. and Canadian governments and Fiat SpA (FIA.MI).

(Excerpt) Read more at fe10.story.media.ac4.yahoo.com ...


TOPICS: Business/Economy; Miscellaneous
KEYWORDS: automakers; bankruptcy; chrysler; iacocca
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To: dfwgator

In that respect you are right, except that Chrysler was not the first. Iacocca went to Congress because they had already arranged deals for railroads and airlines.


41 posted on 05/30/2009 3:04:37 PM PDT by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: wagglebee

You could make the case for railroads and airlines, for the military and infrastructure implications. I don’t see that with regards to Chrysler. If Chrysler went under, somebody else would purchase their assets, but in the end it would not have had the impact on the economy that people feared.


42 posted on 05/30/2009 3:06:53 PM PDT by dfwgator (1996 2006 2008 - Good Things Come in Threes)
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To: dfwgator

You are correct.


43 posted on 05/30/2009 3:09:39 PM PDT by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: wagglebee

He dicho.

Punto final.


44 posted on 05/30/2009 3:16:26 PM PDT by GatĂșn(CraigIsaMangoTreeLawyer)
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To: Justaham
Iacocca's pension would be among the obligations Chrysler will no longer have to pay if it gets bankruptcy court approval to sell itself to a "New Chrysler" to be owned by its union

This is BS.....

.....I'm no Iacocca fan, but the UNION is one of the major factors in the need for bankruptcy in the first place.

The second major factor was managements unwillingness to deal with the union problem for years. The union ought to be grateful to Iacocca for even having a company with a pension. Iacocca has been out of the company for a long time, the problem rests with todays management. He is not to blame for today's problems, but the union does have culpability.

If Iacocca loses his retirement contract, then the union should lose theirs too. It's only fair.

45 posted on 05/30/2009 3:28:27 PM PDT by SteamShovel (When hope trumps reality, there is no hope at all.)
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To: SteamShovel
If Iacocca loses his retirement contract, then the union should lose theirs too. It's only fair.

I forgot to finish by saying that Iacocca's retirement being cancelled makes a small difference. The big difference would be to cancel the union's retirement.

Fair is fair, if one loses, they should all lose.

46 posted on 05/30/2009 3:30:16 PM PDT by SteamShovel (When hope trumps reality, there is no hope at all.)
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To: al baby

He will lose his pension and car by Fiat


47 posted on 05/30/2009 3:34:12 PM PDT by Vendome
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To: al baby

It is not funny. If you can think to the big picture from your narrow mind. It really sucks.


48 posted on 05/30/2009 3:37:11 PM PDT by bmwcyle (Hey GOP follow Dick Cheney's lead)
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To: Vendome

He will lose by Fiat


49 posted on 05/30/2009 3:37:33 PM PDT by Vendome
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To: Core_Conservative

For 12 years you have been asking....

Were is Carmen San Diego?


50 posted on 05/30/2009 3:39:14 PM PDT by Vendome
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To: Hildy
In Lee Iacocca's case, he went to Congress to beg for loan guarantees, and made the argument that the US would be compensated for the risk, but being paid out of future profits, if Chrysler survived.

After Chrysler recovered, he weaseled out of the obligation by convincing Congress that the loan guarantees hadn't actually cost the government anything, so Chrysler shouldn't be held to their promise of payments.

51 posted on 05/30/2009 3:40:35 PM PDT by 3niner (When Obama succeeds, America fails.)
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To: Justaham

Interesting. I didn’t even realize he was still drawing a pension from those guys.


52 posted on 05/30/2009 3:42:39 PM PDT by RichInOC (No! BAD Rich! (What'd I say?))
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To: Jack Black
Great point. Obama and the UAW are creaming all the non-union employees.

It is the biggest labor coup ever and no one in the MSM is mentioning the people who are losing everything. As if saving the company were all that mattered.

Sad, but typically liberal. If they thought out the results of their actions they'd be suicidal.

53 posted on 05/30/2009 3:42:59 PM PDT by 1010RD (First Do No Harm)
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To: wagglebee; al baby; Hildy; Salamander

Jews, Catholics, Zionists, papists, Masons, Bilderbergers, Build-a-Better-Burger, Dan Brown, Ron Howard - Who can tell the difference?

<;^)


54 posted on 05/30/2009 3:43:09 PM PDT by shibumi (" ..... then we will fight in the shade.")
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To: dfwgator
Absolutely correct. Unsuprisingly, it was Carter originally and now Carter 2.

Chrysler's end would have been very healthy for the US auto market.

55 posted on 05/30/2009 3:47:55 PM PDT by 1010RD (First Do No Harm)
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To: 3niner
Damn...are you a troll or just plain damed stupid?

In August 1983, Chrysler paid off the federal loan guarantees seven years early, at a profit of $350 million to the U.S. government.

".In late December 1979, the U.S. Congress passed the Chrysler Corporation Loan Guarantee Act, which President Carter signed into law on January 7, 1980. The act provided Chrysler $1.5 billion in federal loan guarantees.

Concessions from UAW-represented workers, white-collar employees, suppliers, creditors and lenders kept Chrysler operating despite record losses of $1 .7 billion in 1980. Chrysler cut inventories by $1 billion, reduced white-collar staff by 50 percent and cut its break-even point by 50 percent in its drastic efforts to manage finances.

Through the travail, Chrysler doubled its corporate average miles-per-gallon (C.A.F.E.) and in 1978, introduced the first domestically produced front-wheel drive small cars -- the Dodge Omni and Plymouth Horizon. Chrysler was also the first American company to convert its fleet to front-wheel drive. Chrysler was on its way to recovery.

RECOVERY AND GROWTH

"If you can find a better car. . . buy it." This challenge became Chrysler's battle cry in its recovery fight. Lee Iacocca began appearing in Chrysler's television advertising in July 1980, and became one of the most recognizable businessmen in the world!

In 1981, Chrysler reported record losses, but the company saw light at the end of its financial tunnel -- from the headlamps of its new K-cars. Developed on a limited budget, the Dodge Aries and the Plymouth Reliant, code-named the "K-cars", enjoyed sales success which Chrysler rode to profitability in 1982. The momentum continued, and for the first time since 1973, the company was profitable for four consecutive quarters. In August 1983, Chrysler paid off the federal loan guarantees seven years early, at a profit of $350 million to the U.S. government.

__________

Go do some homework before you post here again.

You're embarassing your folks somthing awful.

56 posted on 05/30/2009 3:52:53 PM PDT by Covenantor ("Men are ruled...by liars who refuse them news, and by fools who cannot govern." Chesterton)
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To: Justaham
NEW YORK (Reuters) – Lee Iacocca, the car executive credited with saving Chrysler from bankruptcy in the 1980s, is to lose a big chunk of his pension and a guaranteed life-long company car due to the U.S. automaker's bankruptcy filing two decades later.

That should read: "NEW YORK (Reuters) – Lee Iacocca, the car executive falsely credited with saving Chrysler from bankruptcy in the 1980s, is to lose a big chunk of his pension and a guaranteed life-long company car due to the U.S. automaker's bankruptcy filing two decades later."

The American taxpayer saved Chrysler in the 1980s...had we not done that, it is possible that the big two would have said, "Holy crap! I guess we have to reengineer the company." rather than "Don't worry, man. The idiot taxpayers will bail us out."

57 posted on 05/30/2009 4:18:48 PM PDT by MIchaelTArchangel
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To: Justaham

another step taking it to ‘da rich, white man’

anyone that has no idea what Iacoccoa did for detriot and America, then they’re an idiot and should do some homework before commenting.

of course, with 0bambi in the office, along with his stooges, they will crater the economy faster then ever dreamed possible. along the way, their goal is to strip as much wealth from white Americans as they can.

don’t be a frog in a pot... Go Galt and let the marxists try to fund their communist wet dream/reparations without any of your tax money


58 posted on 05/30/2009 4:21:42 PM PDT by sten
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To: mamelukesabre
The shareholders are getting zip...

Their own fault for not tending to the business.

59 posted on 05/30/2009 4:27:37 PM PDT by ex91B10 ("Search" and "Preview" are your friends...)
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To: silentreignofheroes

You’re lucky. Fortunately, mine was recalled and the gas tank was reinforced. I have to say that, other than living in fear of instant cremation, my Pinto was a nifty little car.


60 posted on 05/30/2009 4:40:02 PM PDT by kittykat77 (?)
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