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Obama's Chicago Politics Wins; Chrysler's Remaining Senior Credit Holders Cave

Obama's Chicago political machine wins again. We aren't surprised are we? I mean, it was just a few short weeks ago that Obama told TARP bank CEOs that his administration was only thing between them and the pitchforks. Al Capone would be so pleased to know that a kindred spirit is in the White House.

Chrysler LLC's dissident secured lenders, a group including OppenheimerFunds Inc. and Stairway Capital Management, gave up their fight against the automaker's bankruptcy sale of assets to a company run by Fiat SpA.

Chrysler's non-TARP lenders, as they dubbed themselves, don't plan to defend their earlier objections to the deal and may withdraw them formally, said Tom Lauria, the White & Case LLP attorney representing the group.

"After a great deal of soul-searching and, quite frankly, agony, they concluded they just don't have critical mass to withstand the enormous pressure and machinery of the U.S. government," Lauria said today in an interview.

It's a shocking reality that the president of the United States is trashing US bankruptcy law in an effort to payback his protected constituency, the UAW. I notice that the media and the left who just a few years ago were screaming HALLIBURTON! are no where to be found on this issue.

A man becomes preeminent, he's expected to have enthusiasms.

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Comments (28)

After seeing the first few ... (Below threshold)
914:

After seeing the first few months of this guy. Nothing shocks Me anymore. And maybe that is the idea.

Team Obama Wins!... (Below threshold)
epador:

Team Obama Wins!

"the left who just a few ye... (Below threshold)
justpassingthrough:

"the left who just a few years ago were screaming HALLIBURTON!"
That's because it's different.
I like to consider it more like recycle program.
Tax payer money goes into a crappy company comes out via union campaign contribution for 2012.

I understand what you're sa... (Below threshold)
MichaelC:

I understand what you're saying 914, but me, I'm stunned. Blatant criminal activity, lawless arrogance, and self-entitlement in clear view of the American public. I never would have believed that anyone could get away with such behavior and retain any public support whatsoever.

It truly does appear that there is no one of stature to stand against this thug from Capone's Chicago

So, now the UAW will run Ch... (Below threshold)
DaveD:

So, now the UAW will run Chrysler (and I presume GM in the near future). I guess they will become the government subsidized research arm for green technology in automobiles. I presume further that whatever government subsidized green technology they develop will be mandated for any other private automobile company producing cars in the US. Can I surmise in the long term that Obama would love to see the independent automakers not needing US government "help" be pushed out of the US? My head is spinning because I cannot figure out from where this guy came and from where he gets his power. I never believed I would see someone like this become president. I guess that for these secured lenders to back out at this point means they believe they have zero chance of winning in court despite legal precedent that should favor them. I am not a conspiracy nut but Obama must have a puppetmaster. I just can't believe a lightweight like him who has no important achievements in public service can achieve this level of intimidation alone.

You know, there is a very c... (Below threshold)
jim:

You know, there is a very clear way that American business can not experience this kind of pressure.

They can choose to not run their businesses so poorly, that they need a taxpayer-funded bailout to survive.

If you seek and then accept someone else's help, they have a reasonable right to call the shots as to what you do with that help.

Your IQ is showing, Jim. I ... (Below threshold)
MichaelC:

Your IQ is showing, Jim. I cannot believe anyone could actually make such an ignorant statement. This president is a criminal thug. I use the word 'criminal' as he is clearly throwing long standing laws aside because they do not suit his theft of other people's money which he is "transferring" to his political supporters.

Not only are you ignorant of the law, you seem to be willfully blind to the horrendous behavior of this lawless poser who has crept into a position of real power in this country from which he only seems capable of spreading fear and strong arming opponents, as he thrashes his way through the psyche of the people.

This empty suit is the most malevolent person ever to occupy the White House.

"If you seek and then a... (Below threshold)
marc:

"If you seek and then accept someone else's help, they have a reasonable right to call the shots as to what you do with that help.

Having a reasonable right is a far cry from ignoring long standing bankruptcy law and fiduciary responsibility.

You're nuttier than a snickers bar.

That said, I don't think this is over by a long shot. Keep in mind these funds folded under pressure but, it was the managers of these funds that have made the decision.

I hope the individual bond holders would be pissed-off enough to run to the nearest court and file suit and at minimum get an injunction to stop this theft.

Fiat is only getting a 20% ... (Below threshold)
Paul Hooson:

Fiat is only getting a 20% share in Chrysler. That's hardly a controlling interest compared to even the 49% share Renault once held in American Motors. Sadly though even that 49% share couldn't save little AMC.

Paul, are you nostalgic for... (Below threshold)
epador:

Paul, are you nostalgic for the Pacer or the Gremlin?

Paul, the government has su... (Below threshold)

Paul, the government has such control over this deal that Fiat's interest can grow to 51% IF it does these three things:

That stake can jump to 35 percent if Fiat reaches three milestones, the officials said. It has to help Chrysler sell more vehicles outside of North America, launch a fuel-efficient engine that would be manufactured in the United States and introduce a 40-mpg vehicle in the U.S. that also would be built here.

But to get equity control of the company, it has to repay loans that the U.S. Treasury Department has pledged to help a new Fiat-Chrysler emerge from Chapter 11 bankruptcy within 30 to 60 days.

The US government should not have any control of the business goals of any private company. Obama is governing with the assumption he has ultimate control over any part of American life, whether private or public. It's like he thinks he has divine providence.

Kim your wasting bandwidth ... (Below threshold)
marc:

Kim your wasting bandwidth pointing to anything related to truth to hooson.

He's in a swoon over obama and fiat.

The UAW may live to regret ... (Below threshold)
GarandFan:

The UAW may live to regret this. While they are 'celebrating', I'd like to call to mind names from the past for them to consider. "United Rubber Workers" and "United Steel Workers". They "won" big in the 80's. Where are they today?

The UAW has already said th... (Below threshold)
MPR:

The UAW has already said they will sell shares Obamalala is going to give them to pay for the retirement and pension benefits. I guess they don't see Chrysler staying in business with Obamalala as the Chairman and CEO.

The UAW can sell the shares... (Below threshold)
DaveD:

The UAW can sell the shares; I just can't see anyone interested in buying them. Of course this could get even weirder if Obama asks for additional stimulus money to buy those shares.

1. Used cars are going to g... (Below threshold)
Jeff Blogworthy:

1. Used cars are going to get a lot more valuable in the near future.

2. There are a lot of red blooded Americans who are not going to buy cars from union thugs on principle alone.

3. Subsidies and penalties will be used once more to "fix" the market imbalance.

AT what point do we throw t... (Below threshold)
Zelsdorf Ragshaft III:

AT what point do we throw the tyrant from office?

"When life gives you le... (Below threshold)
marc:

"When life gives you lemons, you make lemonade (or glazed strawberry lemon streusel muffins). When Chrysler gives you lemons, you're SOL."

NASCAR/IndyCar Car owner Ro... (Below threshold)
marc:

NASCAR/IndyCar Car owner Roger Penske is exploring the purchase of Saturn from General Motors.

Penske heads the Penske Automotive Group, which operates more than 300 dealer franchises in the United States and internationally, selling 40 different brands.

"Saturn is obviously one of the divisions which General Motors is either going to sell or close down," he said last week in a news conference at Indianapolis Motor Speedway.

"At this particular time, we have made no offer to GM. We're in a due diligence stage. It's a very short time frame. At the moment, lots of things have to play out before we make a formal bid. I think the publicity is way ahead of the process."

From the LA Times:<b... (Below threshold)
MPR:


From the LA Times:
Chrysler's bankruptcy is throwing a wrench into California's lemon law, which is intended to make it easier for consumers to get refunds for defective vehicles. As the automaker's bankruptcy grinds away, settlement checks from Chrysler to unhappy car buyers are bouncing and complaints are stymied in and out of court. (Snip) And Chrysler says it has yet to do anything to resolve the issue.LATimes.
Just the tip of the iceberg. I can see Americans flocking to buy Fiat/Chrysler/Obamalala mini-cars. Wait...if they name it after Obamalala, you know like Ford did Edsel after his son, they will have a sure fire winner.With his "understanding" of history, Chairman and CEO Obamalala will love it. I do.

Kim, from what I read in bu... (Below threshold)
Paul Hooson:

Kim, from what I read in business news was that Fiat's share could only grow to 41% maximum, so we have different news sources I suppose. However, if that extra infusion of cash saves a company, then that sounds good. Chrysler has been troubled for years, and when the German company Daimler dumped them. a lower tier group of investors sought to save the company. However, without the bigger assets of Daimler, this smaller company only suffered losses. So the Fiat lifeline is worthwhile as a last ditch opportunity to rescue the brand.

I'm in talks to buy a business this week whose sales are down 40%, but is still profitable. And I'll inject thousands of dollars of new cash into the company to revive it back to it's best performance ever I hope. Sometimes new owners can rescue a troubled business and turn things around, other times not. This is a gamble for me. And Chrysler is a big gamble for Fiat, but worth the challenge.

Epador, you can forget the Pacer. But the Gremlin was a pretty intelligent business move for little AMC. Back in September 1969, AMC introduced the new Hornet compacts to replace the Rambler line for a mere $40 million dollars in tooling costs. For only $6 million more dollars, the subcompact Gremlin line was introduced. AMC managed to sell Hornet or Gremlin designed models from September 1969 until 1987. That's even longer than the Checker automobiles. Because of a lack of money, little AMC marketed cars with only minor face-lifts longer than American cars ever. That's good money management.

On Michael Medved was asked... (Below threshold)

On Michael Medved was asked by a caller why we don't just impeach the guy. The host responded that President Obama hasn't broken any laws, that all of his actions have been technically legal.

Haven't they ever heard of RICO?

hooson - "Chrysler has ... (Below threshold)
marc:

hooson - "Chrysler has been troubled for years, and when the German company Daimler dumped them. a lower tier group of investors sought to save the company."

A what group of investers? "lower tier" you say?

hooson the depths you will go to somehow justify your existence here knows no bounds.

Or are you really that stupid to think Cerberus Capital Management - the "lower tier" group you refer to - is in fact of that quality?

Cerberus Capital Management is one of the largest private equity investment firms in the United States you nonsensical twit.

They own Albertson's one of the largest grocery chains in the US, they own Georgia Pacific Corporation, North American Bus Industries, Optima Bus Corporation, and Blue Bird Corp.

And many more LARGE companies, do I really need to go on?

Cerberus paid over 7 billion for the Daimler share of Chrysler, at the time of your messiah's illegal intervention they held 2 billion in chrysler bonds

Do you have a friggin' clue what your messiah gave them?

Nothing is what barack hussein obama gave them. NOTHING.

P.S. Your continued habit of The Hooson Chronicles are tiresome and boring. No one cares one wit about your businesses, hot girlfriend or your damn scooters, they only serve to reaffirm that your a windbag.

And BTW, Checker was established by Morris Markin in 1922, from 1922 until 1959 Checker's production vehicles were built almost exclusively for the taxi business, do the math nitwit that's works out to FAR more than 18 years of AMC Hornet or Gremlin.

hooson, a Tufted Titmouse has more knowledge about the auto industry than you do.

Ok, so it was the Gremlin.<... (Below threshold)
epador:

Ok, so it was the Gremlin.

Figures.

Marc, the problem with Cerb... (Below threshold)
Paul Hooson:

Marc, the problem with Cerberus is that they have no experience in the auto building business and they still lack the know how and capital of Fiat. Fiat is at least an experienced car maker. However, it is disturbing that Daimler could not make Chrysler viable. Daimler was a good company with great designs and decent quality.

Also, the Checker design for the well known taxis ran from 1958-74. While cars based off the 1970 Hornet(introduced September 1969) ran from September 1969 until 1987 as the last four wheel drive Eagle wagons owned by Chrysler until the Premier and Medallion models designed by Renault were lainched by Chrysler. The Hornet based cars were the longest use of a car body design in American history, longer that that familiar Checker design.

Hello Epador. The Gremlin might have been a boxy car and ugly little car, but so were the first Hondas or the Scion. But the Gremlin was a very sturdy and well-built car that held together for a real long time that only sold for a mere $1,879 back in April of 1970 when it was introduced. For a car that sold as high as 113,000 unit one year, it was a real captial bargain investment by little AMC to invest just $6 million dollars developing this little car. For 1979, the car was restyled into the Spirit, but it was still the same car, just with a fastback instead of the chopped off back. And a four wheel drive version was launched into the 80's as well called the Eagle SX4. AMC got a lot of mileage out of the old Hornet and Gremlin line for very little money. This company really knew how to pinch pennies unlike the reckless spending habits of Rick Wagner at GM that were part of the company's troubles. His failed fuel cell car experiments have cost GM over $1 billion alone. That's a big chunk of change compared to the total $46 million AMC spent to get 17 model years out of the Hornet/Gremlin car lines.

The main problems with the Pacer was that helped to put AMC on the skids because it cost $140 million to design. And a Wankel type engine from GM was not used in the design as expected because GM cancelled the project leading to the overly long six cylinder engine, then the 304 V8 being used. Neither got great gas mileage in this heavy car. And with a curb weight way over 3,000 pounds, the car was hardly an economy car, and was as wide as a full size Chevrolet, although short in overall length and was very hot inside because of the excessive use of glass. And further the car only sold real well for just one year, 1975, as a 1976 model, before the public began to turn against the design for many reasons. Further the Pacer hurt the car sales of both the Hornet and Gremlin line, and left the company with less future customers. The Pacer was in fact a fatal business decision by AMC and the biggest business mistake that this company ever made. It put little AMC on the road to financial ruin and forced AMC to seek help from Renault. Further, in the late years, the quality of AMC products began to suffer as well, hurting the brand's reputation. Every Spirit owner I knew was totally dissatisfied with their car unlike Gremlin owners like myself who loved their cars.

Hooson,Until you b... (Below threshold)
MichaelC:

Hooson,

Until you began posting in this thread it concerned the despicable tactics of that son of a bitch in the White House who has a delusion that he has been elected "King" with the mandate to piss all over anyone who gets in his way.

The fact that the sole secured credit holder with Chrysler felt compelled (coerced)to give in IS the topic of this thread. Your tactic of telling stories and rambling on while blowing smoke up everyone's ass is a tactic that commenters at Wizbang pretty much saw through long ago. So why do you persist at it.?

Get yourself back over to Lee Ward's cesspool. You can tell him how mean we were to you.

MichaelC - "Get yoursel... (Below threshold)
marc:

MichaelC - "Get yourself back over to Lee Ward's cesspool. You can tell him how mean we were to you."

Oh, and he will. All indignant he'll be and King Idiot Lee will pat his head and all the world will be right again.

hooson - "Also, the Checker design for the well known taxis ran from 1958-74."

Why do you persist in being not only wrong on such easily discovered details and facts but do so repeatedly AND after being shown to be a blithering idiot?

Moving the bar doesn't work nitwit, going from Cerberus being "lower tier" (your first try) to one that has "no experience in the auto building business" is nothing more than an attempt to "look" correct when in fact your not.

You go from "that's even longer than the Checker automobiles to your latest revision that reads "the Checker design for the well known taxis ran from 1958-74" and once again moving the bar/goalposts like every good little wizbang blue boy (and I emphasize BOY) is taught to do when faced with being completely and utterly WRONG.

Now, if you disagree with that I suggest you contact the Checker Car Club of America - you know a place to find real history not something ginned-up by your fertile imagination - maybe they will be dumb enough to alter the marquee's history to fit your bullshit.

Run along now little wizbang blue boy, your stupid shit doesn't fly here, it just stinks.

On the road today I saw and... (Below threshold)
ODA315:

On the road today I saw and AMX........bright red and looking good.

These were a hot ride right up there with a Roadrunner and LS 396 Camaro.




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