Chrysler **BANKRUPTCY FILED** / GM US govt. bailout

[Mothers Worry]

Without the FIAT deal Chrysler are completly finnished. The courts should simply approve it without delay.

Perhaps what they (the Supreme Court) are doing (and this is hypothetical I may be completely wrong) is admitting this one appeal on the basis that they can knock this one on the head as a way of setting precedent to make sure that if other appeals are lodged they only get lodged in lower courts and won't affect the takeover process.

It's obviously a question of law as to whether the pension funds actually have jurisdiction at all or can affect the takeover process. National interest always come up in these types of SC matters. Interestingly the pension funds amounts argued only run into some millions (US$6 I think) and are pocket money considering the types of cash involved in the takeover.

You're right though; if this takeover doesn't happen Chrysler is through.

[Everso Biggyballies]

Without the FIAT deal Chrysler are completely finished. The courts should simply approve it without delay.

My thoughts entirely..... it is surely the best way of saving the name, the jobs (a lot of them anyway) and the very future of the business.  Im not totally aware of the various pension fund rights and stuff under Chapter 11 protection, but this seems like bureaucracy interfering with a fresh start, progress and potential jobs.

[Mothers Worry]

Without the FIAT deal Chrysler are completely finished. The courts should simply approve it without delay.

My thoughts entirely..... it is surely the best way of saving the name, the jobs (a lot of them anyway) and the very future of the business.  Im not totally aware of the various pension fund rights and stuff under Chapter 11 protection, but this seems like bureaucracy interfering with a fresh start, progress and potential jobs.

Unfortunately the courts don't have the luxury of changing the rules without examination of this stuff, hence the whole deal ending up in the SC.

[Yoda]

Maybe FIAT would be better off walking away from it, let the US taxpayer underwrite the whole liquidation process?

In fact I don't know why FIAT have expressed interest in Chrysler to begin with? what could they gain from taking on a broken, debt ridden 20th century dinousaur like Chrysler?

[Everso Biggyballies]

Maybe FIAT would be better off walking away from it, let the US taxpayer underwrite the whole liquidation process?

In fact I don't know why FIAT have expressed interest in Chrysler to begin with? what could they gain from taking on a broken, debt ridden 20th century dinousaur like Chrysler?

I think perhaps a distribution platform in North America for Fiat and Alfa, brands it is keen to establish in North America. Alternatively it could rebadge Fiats as Chrysler in a market that has some prejudices against small Italian cars. Also it has a weekness in the 4WD area, and people carriers -- Fiat would be able to sell the Jeep through its distribution networks in Asia, Latin America and Europe. Throw in its plan / thoughts to take over the European bits of GM (Vauxhall and Opel) would allow them to take a chunk of the small car market, or at least allow it to make production efficiencies and increase production levels, thus allowing better pricing  . 

Thats my 2 cents worth.  OT is the man who might shed further light or thoughts.

[Oldtony]

I think you have picked the potential synergies EB.
FIAT will probably hang in a bit longer, but they can't aford to be stuffed around by the US legal system. The Supreme Court challenges are basically a tactic to get the US Government to compensate some US pension/bond interests, to maintain the rights of US consumers to sue for injury or loss attributed to Chrysler products built and sold prior to Chapter 11, and to alter the ranking of certain creditors. The key to the actions is interpreting the legality of the use of funds voted by the Congress to bail out banks for the re-financing of a manufacturer. It has to be settled quickly because the GM re-financing funds come from the same source.
The FIAT buy out of GM Europe is a non starter, the German government having sellected Canadian parts and component giant Magna to partner in the Opel buy out. It seems that they will also get Vauxhall as part of the deal but that is a bit up in the air at present as Gordon Brown has other things on his mind.
FIAT's main reason for getting involved with Chrysler is the marketing and distridution clout it would give them in North and South America, and in a number of other places round the World.
For FIAT the jewel in the Chrysler product crown would seem to be Jeep, which would expand the market coverage and get FIAT into a lot of places they don't really have any penetration of at present.
Difficult to see much else except maybe Voyager that doesn't need redesign from the ground up and a completely new product philosophy. Certainly they would have the knowhow to push eco friendly small cars through the Chrysler plants, and with the FIAT leadership in production tooling, do it with a usefull saving in labour costs.
Two problems at the moment. FIAT have to do better relating to the US car market and manufacturing culture than Daimler Benz managed in the disastrous merger with Chrysler, and of course they can't stuff around in the US courts for too long.

[Oldtony]

Fhe US Supreme court has ruled that the FIAT purchase of 20% of Chrysler can go ahead and that the agreement gives FIAT effective management control of Chrysler.

[Everso Biggyballies]

Fhe US Supreme court has ruled that the FIAT purchase of 20% of Chrysler can go ahead and that the agreement gives FIAT effective management control of Chrysler.

There is some common sense left in this world! 

Realistically it is the only way forward given the minimal options or alternatives that faced Chrysler.

[Mothers Worry]

Fhe US Supreme court has ruled that the FIAT purchase of 20% of Chrysler can go ahead and that the agreement gives FIAT effective management control of Chrysler.

There is some common sense left in this world! 

Realistically it is the only way forward given the minimal options or alternatives that faced Chrysler.

That's good news. Hopefully now this precedent has bee set there will be no more obstacles in the way of Chrysler powered by Fiat.