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Chrysler, what do you think?

Chrysler, which almost didn't survive the Great Recession, would like to repay its government debt before the two-year anniversary of its emergence from Chapter 11 bankruptcy on June 10, Chrysler and Fiat CEO Sergio Marchionne said Sunday.

Previously, Marchionne said the company would refinance its debt and pay off its $7.5 billion in government loans by the end of the second quarter, or June 30. Last week, Chrysler announced that it earned $116 million from January-March -- its first profit since emerging from bankruptcy. In 2010, Chrysler lost $652 million
http://www.freep.com/article/20110509/BUSINESS01/105090344/Chrysler-hopes-repay-7-5B-loan-before-June-10-bankruptcy-anniversary?odyssey=mod%7Cnewswell%7Ctext%7CFRONTPAGE%7Cp

Answer Question
 
Rnurse

Asked by Rnurse at 5:56 PM on May. 9, 2011 in Politics & Current Events

Level 23 (17,537 Credits)
Answers (27)
  • Was obama correct in NOT allowing Chrylser to fail?
    Rnurse

    Comment by Rnurse (original poster) at 6:03 PM on May. 9, 2011

  • http://www.bbc.co.uk/news/business-13295872


    Dont forget GM....


    Seems like it worked pretty well

    sweet-a-kins

    Answer by sweet-a-kins at 6:11 PM on May. 9, 2011

  • Not much to think about. 116 mil? A tiny drop in the bucket. I wonder if they are factoring in all the incentives they give to get someone to buy their cars.
    Seems Fiat wants to up their stake in the company so they are offering up over a billion.
    While it's great that they want to get out from under the thumb of the government they will still owe who knows how many banks the money instead. I know they want to have an IPO as soon as possible but who knows how that will go. GM thought they would have people falling all over themselves to get the stock but it's not even trading at the $33 they thought it would.
    Anyway, I've never had a Chrysler and I don't plan on buying one either

    itsmesteph11

    Answer by itsmesteph11 at 6:12 PM on May. 9, 2011

  • Was obama correct in NOT allowing Chrylser to fail?

    Paying off the government doesn't guarantee they won't fail. They will still owe someone the money
    itsmesteph11

    Answer by itsmesteph11 at 6:14 PM on May. 9, 2011

  • "Morgan Stanley is arranging the company’s term loan, Bank of America Corp. will manage the bond sale and Citigroup Inc. will lead the revolver, two other people briefed on the matter said last week. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t. "


    I think they are refinancing their loan and selling bonds to HOPEFULLY raise funds to pay loan... 

    grlygrlz2

    Answer by grlygrlz2 at 6:19 PM on May. 9, 2011

  • It was claimed that the companies would ultimately fail under government ownership. Government can't do anything right. What actually happened? It was under private ownership that these companies failed! The Obama administration assigned respected leaders from the private sector to work with the courts and oversee the reorganization of these companies. The government never "ran" GM or Chrysler, but it acted as a catalyst to reorganize. And it worked. Both companies are thriving. Prospects for long term survival are excellent.

    Rnurse

    Comment by Rnurse (original poster) at 6:21 PM on May. 9, 2011

  • Gm will thrive until it is stuck with the Gov pressed electric cars.
    Carpy

    Answer by Carpy at 6:24 PM on May. 9, 2011



  • NEW YORK (CNNMoney) -- Chrysler Group on Monday reported its first quarterly profit since 2006, marking an important milestone in the turnaround in the U.S. auto industry.

    http://money.cnn.com/2011/05/02/news/companies/chrysler_earnings/index.htm
    Rnurse

    Comment by Rnurse (original poster) at 6:24 PM on May. 9, 2011

  • Carpy, electric cars are the future. Maybe you're just stuck in the past!
    Rnurse

    Comment by Rnurse (original poster) at 6:26 PM on May. 9, 2011

  • That is a good sign. Interesting.I am optimistic.
    And my son and DIL are planning on buying an electric car in a few years. They live in NC and there are electric car recharging stations in some of the large cities there. YES< it is a sign of an effort to become less dependent on oil.
    THE FUTURE----get used to it.
    minnesotanice

    Answer by minnesotanice at 6:34 PM on May. 9, 2011

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