Posted on 02/05/2011 4:53:37 AM PST by Erik Latranyi
SAN FRANCISCO, Feb 4 (Reuters) - Chrysler Group LLC is working to refinance what its chief executive characterized as "shyster loans" that the Obama administration extended as part of a bailout to keep the automaker from collapse in 2009.
"I want to pay back the shyster loans," Sergio Marchionne said at an industry conference, using a derogatory term for an unethical lawyer or politician. "Pay back the loans, get those out and then take (the company) public."
Marchionne, who is also CEO of Italy's Fiat SpA (FIA.MI), has said repeatedly that the high interest rates on loans Chrysler owes the U.S. and Canadian governments have been an obstacle in the automaker's return to profitability.
In 2010, Chrysler paid $1.23 billion, or about $3.4 million a day, in interest payments. He described those payments as a "thorn in my side", adding that Chrysler had no choice but to take the loans at the height of the financial crisis.
(Excerpt) Read more at reuters.com ...
Liberal hypocrisy on display for all to see.
Meanwhile GM gets 50 billion in tax breaks. Corporations are so evil /s.
Something tells me that as soon as Chrysler cuts the appropriate bribe checks, these loans will be forgiven.
I believe that is the proper slur for a Jewish lawyer or money lender.
Mr. Soetoro has become the Shyster-Saviour of Chrysler. Nice!
Too late, Sergio. Once a cheating whore, always a cheating whore. You can take your Chryslers and choke on them. I’ll never own one again, and that goes double for GM!
In 2010, Chrysler paid $1.23 billion, or about $3.4 million a day, in interest paymentsHoly .. 'cow'. That sounds a tad illegal. As in usury.
And iirc, Barry's DOJ puts *Italians* in Federal Prison for charging the same type of interest on a 'loan'. So I can just see some of the Wiseguys from the Chicago Outfit sitting in Marion Federal Prison and mumbling,
"Life ain't fair. Life ain't fair."
:-)
[snip]
The Energy Department loans would allow Chrysler to borrow at essentially the same rate as the federal government and allow the automaker pay back higher-interest financing on the $5.7 billion it owes the U.S. Treasury.
So he isn't looking to through off the yoke of federal loans. Instead he just wants a slightly lighter model and the ability to brag that he paid off his bailout. Just like GM bragged about how it paid off its loans, but it took some digging to see that it paid them off with other federal money. Crooks one and all. Ford is the only American car I will consider buying. The other two are dead to me.
through -> throw. Spelling doesn’t kick in until 9:00am.
The entire deal stunk to high heaven. Beware of “bailouts”.
It’s a shame Chrysler sold out because I’d like a new vehicle and the only two I’m interested in are Chrysler products...sort of. I’d like a 4 door Jeep Wrangler or a Dodge Ram 2500 diesel, but it’ll be a cold day at Beelzebub’s place before I’d buy either! Love that Cummins I6 diesel. Wouldn’t it be great if Cummins told Chrysler to shove it and offered their engine in another better truck???
There have been many rumors about this (Ford folks have dreamed for years about getting the Cummins motor), but the latest rumor is that Cummins may work with Nissan on their upcoming pickup.
I’d be first in line for a diesel Titan. I’d also be first in line for a diesel Armada. Either MUST have a Cummins I6, no vee configuration is acceptable.
Other sources clarify that it is $3 million per day in interest and “other charges”, which include the equivalent of preferred stock interest.
Marchionne is careful to refer only to the loan portion of their government aid. All in all, they received $12.5 billion in aid, and haven’t repaid any of it. $3 million per day on that total gives a rate of 9.15% annually, which isn’t as “shyster” as he wants to pretend - he’s simply doing his job, which is trying to rebuild public goodwill, in this case by making the government look like a bad guy.
FWIW, Ford bonds issued in 2008/2009 paid interest rates of 9-12% in general.
I don’t feel sorry for Chrysler, and I don’t feel that they’re paying ridiculous interest rates.
You “don’t feel sorry for Chrysler”. Oh, so what you want, then, is for the Treasury to lend them a bunch of money at absurd interests rates, and then for them to be so high that they can’t succeed. Whether righteous or not, the fact is, Chrysler was lent money. What is unrighteous, is that the interest rate imposed is absurd, and a serious impediment to success. So, after lending them money, now you want to impede progress and profits? WHY? What emotional tantrum is so righteous that irrational behavior is then justified?
We should so desperately want them to succeed, not burden them stupidly, hoping for their failure. That, indeed, is monumental stupidity.
There is no “better truck”. And right now the future survival of Nissan is more in doubt than that of Chrysler.
You REALLY do not know what you’re talking about. Before you start making crazy comments, you should investigate what you’re talking about. First, Ford DID borrow money from the feds... they got a low interest 5.6 BILLION dollar loan. All the Japanese car companies get subsidies and government money, just not OUR government’s money, though more than one applied to get TARP money.
BTW, Chrysler was loaned TARP money, because it was OFFERED to them, they took it. Chrysler had already stanched its bleeding and was working its way back to profitability. But buried in the terms of the TARP loan, gave the feds the ability to control their actions.
However, it was the feds who ordered Chrysler to declare bankruptcy, and had the leverage to make them do it, which they did. They then stole the investor’s money, and gave it to the unions. None of this was Chrysler’s wish or doing, and none of this occurred under the current management’s watch.
If you’re going to buy a car from a company that did not borrow government money, you’re going to have to buy only used. EVERY LAST ONE OF THEM is the recipient of government bailouts, lending, subsidy, or protectionism in a crony capitalism setting.
BTW, the UAW, as it concerns Chrysler, accepted wage and benefit cuts to the level of about what the non-union people get.
Is Chrysler’s future secure? You bet. In 4 years, they will be the PREMIER American car company again, like they were in the mid to late 90’s, cranking out nothing but the best stuff. During those times when Chrysler’s future was NOT secure, salaried managers, engineers, etc, were working 60 to 80 hours/week, and did so for the last three years, to produce the new vehicles showing up as 2010’s. They did so BEFORE the fed forced bankruptcy on them. One can hardly blame them once they were forced into bankruptcy, for accepting loans to restart.
You can however, use a little sense and realize that 19 to 24 percent interest, which is illegal in many states as “usury” is just plain insanity. Chrysler borrowed 7 billion, and after 2 years, STILL HAS 5.6 on hand, and during that time, produced 16 signficantly or wholly renewed model vehicles, and decreased production flaws some 80 to 90 percent. Their sales and market share are going up fast, and even the critics are admitting their products are equal to or better than the best.
That’s good old American guts and determination. Stop slapping them down.
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