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somebody explain this Chrysler deal to me
sharpshooter039
Member Posts: 5,897 ✭✭✭
http://news.yahoo.com/s/ap/20090430/ap_on_bi_ge/us_chrysler
in the second paragraph it says Fiat will be the majority owner but then way down in the bottom it says
quote:When Chrysler emerges from bankruptcy, the United Auto Workers union will own 55 percent of the automaker and the U.S. government will own 8 percent. The Canadian and Ontario governments, which are also contributing financing, would share a 2 percent stake.
how can anybody but the UAW be the majority owner if they will own 55 percent of the company.I can tell you for a fact if this is so I will never buy another new Dodge.I own 2 now but I will not buy another one,,how can they take away the value from the bondholders that have sunk 27 BILLION dollars into this company and give it to the union,,,hell that is not socialism that is just straight * communism,,take it away from the people who own it and have money invested in it and give it to who you want to have it
in the second paragraph it says Fiat will be the majority owner but then way down in the bottom it says
quote:When Chrysler emerges from bankruptcy, the United Auto Workers union will own 55 percent of the automaker and the U.S. government will own 8 percent. The Canadian and Ontario governments, which are also contributing financing, would share a 2 percent stake.
how can anybody but the UAW be the majority owner if they will own 55 percent of the company.I can tell you for a fact if this is so I will never buy another new Dodge.I own 2 now but I will not buy another one,,how can they take away the value from the bondholders that have sunk 27 BILLION dollars into this company and give it to the union,,,hell that is not socialism that is just straight * communism,,take it away from the people who own it and have money invested in it and give it to who you want to have it
Comments
http://news.yahoo.com/s/ap/20090430/ap_on_bi_ge/us_chrysler
in the second paragraph it says Fiat will be the majority owner but then way down in the bottom it says
quote:When Chrysler emerges from bankruptcy, the United Auto Workers union will own 55 percent of the automaker and the U.S. government will own 8 percent. The Canadian and Ontario governments, which are also contributing financing, would share a 2 percent stake.
how can anybody but the UAW be the majority owner if they will own 55 percent of the company.I can tell you for a fact if this is so I will never buy another new Dodge.I own 2 now but I will not buy another one,,how can they take away the value from the bondholders that have sunk 27 BILLION dollars into this company and give it to the union,,,hell that is not socialism that is just straight * communism,,take it away from the people who own it and have money invested in it and give it to who you want to have it
They are talking about equity share; like stock, but different. Fiat will run the company and make all decision on company business, Chrysler as the junior partner will have a say, but not much of one.
What do you think the union's reaction will be when their members are asked to substantially reduce their wages and benefits in order to save Chrysler and GM in a short while down the road? It is almost inevitable that this will occur.
Does anyone remember what happened to the steel companies? How about the airlines? Those industries have been strangled by their unions.
I have a Chevy Truck, the wife drives a Durango, but from now on we will only buy FORD products.
Only American auto not taking bail out money. Let the others fail as they should have if they can't manage their business like we have to.
So the UAW Trust for Healthcare plans to SELL SELL SELL their shares. Too much risk and concentration for a fiduciary.
But what happens then? Who will want to buy those shares? Will Obama come in and cancel the shares now owned by Joe Schmoe or a Mutual Fund ..... like he has done for C and wants to do to the GM shareholders?
here's the deal about Chrysler...don't buy one.
I have a Chevy Truck, the wife drives a Durango, but from now on we will only buy FORD products.
Only American auto not taking bail out money. Let the others fail as they should have if they can't manage their business like we have to.
I agree. I currently drive a Jeep Commander (one of the vehicles that supposedly sank Chrysler, BTW) and drove a Durango prior. It will be Ford in the future.
Brad Steele
And I say let them have it.
Kind of like the government taking over the Mustang Ranch. The government could not make money running a Ho house and selling liquor. What makes you thank the the UAW is capable of running a company that they helped destroy in the first place? When all of the cash perks they helped workers gain start coming out of their own pocket it will be all over.
This time Obama says "No. The pension holders will own the company before the share holders and bond holders"
Laws mean nothing. Investment guarantees mean nothing when Obama can do whatever he pleases to help out his contributors.
This is not good.