Chrysler has a plan to repay some loans

[skidoorulz]

Below is an article that I got off Alpar.com. Seems that in Chryslers 5 year plan that they intend to pay back some of the loans they have received. Let's hope they do well and pay back the Government so Obummer has more money to give out to the welfare recipiants of this country or for free healthcare for our citizens.



Chrysler to repay TARP but not DoE by 2014November 4th, 2009 by DaveAdmin
Expectations are for units sold to more than double from 1.3 million in 2009 to 2.8 million in 2014. All brands are seen as growing, particularly Jeep and Chrysler (which sell fewer vehicles now, and are projected to double their sales). US market share is expected to go from less than 9% in 2009 to over 13% in 2014. Dodge is focused on repositioning rather than growth. Retail expense per unit will double to support the repositioning of the brands. Chrysler is to break even by 2010 (operational) and by 2011 (net). All loans are to be paid by the end of 2014. Product spending are to average $4.5 billion per year with $23 billion overall (Capex of $15 billion). There would still be $2 billion of DoE debt at the end of 2014. $2.3 billion in loans have not been drawn. Shipments are to be adjusted by 600,000 vehicles per year partly by restocking dealers and partly by resuming fleet sales.

 

[skidoorulz]

This is sad that I am replying to my own thread. I cannot believe all the whining and complaining that went on on this site when Chrysler and GM took government bailout money. And how so many on this site said well I guess my next vehicle will be a Ford and screw Chrysler and GM. We should just let them fail and we'll never see a dime of that money back it is gone forever! At that time I said if Chrysler makes it I will still buy their vehicles because I would rather support a company that was at least partly owned by Americans than support a Japeneses company. Boy did I get blasted for that. Now that Chrysler has in their 5 year plan to repay at least some of what they owe and who knows maybe all. None here has said a thing about it. Like hey maybe we were wrong and maybe we should think about purchasing Chrysler products if they are going to repay loans and employ American workers. I for one hope Chrysler makes it and grows to be a strong healthy company in the future. And who knows maybe eventually all the money they accepted will be paid back (just like in the 70's) and maybe they will even be able to buy back the 5% of Chrysler owned by the U.S. government. At least they are making an attempt.

 

[V-Man]

I've had 4 Dodge trucks, drive one now, and like their products. I'd love to see them survive. Last month's sales figures for Chrysler were down 30% year over year compared to Ford and GM both up approx 1.5%. Not good news there.

I'm still pissed about all the bailouts. They should have been gone through bankruptcy and restructured the company. Pumping money into a failing company is like inflating a tire with a hole in it.

This goes for big companies, small companies, and individuals; if you make bad decisions, you pay the price, period. Everyone needs to be held accountable.

 

[skidoorulz]

The bad thing about bankruptcy is all the creditors and suppliers take a huge hit when taliking about companies as big as GM and Chrysler. And that in turn has a trickle down effect on smaller companies that supply the suppliers, and investors in the crediting companies. As far as Chrysler sales being down last month 30% over the same month last year, Have you been by a dealership lately? They have absolutely no new inventory to sell. Chrysler stopped building vehicles in April 09 I think. And have just started building units again about 3 weeks ago.Lots were bare and nothing in the pipeline is why sales were down that much. But the doom and gloom news media don't tell those facts, they just like to stir the pot.

 

[V-Man]

The bad thing about bankruptcy is all the creditors and suppliers take a huge hit when taliking about companies as big as GM and Chrysler. And that in turn has a trickle down effect on smaller companies that supply the suppliers, and investors in the crediting companies. As far as Chrysler sales being down last month 30% over the same month last year, Have you been by a dealership lately? They have absolutely no new inventory to sell. Chrysler stopped building vehicles in April 09 I think. And have just started building units again about 3 weeks ago.Lots were bare and nothing in the pipeline is why sales were down that much. But the doom and gloom news media don't tell those facts, they just like to stir the pot.

Bankruptcy is a *****, no one wins. It is a tough correction, but that's why you run your business and personal life properly and avoid it like the plague. Our entire country falls to pieces without accountability. The concept that a company is "too big to fail" is dangerous, and we've seen it first hand. In my professional life I deal with companies big and small, 10 employees to 150,000 employees. I'll tell you from first hand experience that big companies suck. They are slow, inefficient, full of politics, and just an over all pita.

Have any of you ever read about the company GORE, makers of GORE-TEX? When they hit 200 people, they spin off a new division that runs on it's own. This idea is based on human psychology. Our minds can track relationships of 200 people. Much over that you loose track and people can start slacking off and not get called on it. Very interesting concept.

Good point about the inventory. When I bought my 2010 Dodge over Memorial Day I remember them saying they stopped production so what's on the dealer lots is what you get. I didn't realize they went this long without production.

 

[Ollie]

Compared to GM chrysler took pennies.
I also think they should have gone thru bankrupcy.
I still won't support their products.
Personal choice.

 

[V-Man]

Compared to GM chrysler took pennies.
I also think they should have gone thru bankrupcy.
I still won't support their products.
Personal choice.

Considering my political and social beliefs, I shouldn't have bought a 2010 RAM, but man did I get a deal. $34.9k for a $46k truck was hard to pass up. It's a damn nice truck too. I would have rather supported Ford but there were a few things about it that just didn't work for us and were deal breakers.

 

[skidoorulz]

Considering my political and social beliefs, I shouldn't have bought a 2010 RAM, but man did I get a deal. $34.9k for a $46k truck was hard to pass up. It's a damn nice truck too. I would have rather supported Ford but there were a few things about it that just didn't work for us and were deal breakers.

So what you are saying is you can be bought? The Doo dealer here hosed me in Jan of 06. He is also the Harley dealer here. I have 4 Doo's and 1 Harley. I swore at the time of the hoseing that I would never darken the doorstep of either one of his business's again and I haven't. I don't care if he was selling Harley's or Doo's for 2 for a dollar I would not buy one from him. That's the way I am, but it seems to me that a company (any company big or small) that falls on hard times should be able to try to work through those times. You can't sit here and tell me that if you were a business owner with say 500 or even 5 employees and you were having trouble making bills, keeping the door open, keeping all your employees or what have you, that you wouldn't do everything possible, including borrowing money if need be to keep the doors open. And then you would hope that your customers wouldn't take the attitude that so many here on snowest have taken. (Screw V-man I am going to buy from X-man) Please don't tell me that the minute you fell on hard times you would file for bankruptcy and leave all your suppliers and creditors holding the bag. That is not the American way! It is becoming the norm but is not the American way!

 

[Yamahamod]

We will se if that really happens.

 

[V-Man]

So what you are saying is you can be bought? The Doo dealer here hosed me in Jan of 06. He is also the Harley dealer here. I have 4 Doo's and 1 Harley. I swore at the time of the hoseing that I would never darken the doorstep of either one of his business's again and I haven't. I don't care if he was selling Harley's or Doo's for 2 for a dollar I would not buy one from him. That's the way I am, but it seems to me that a company (any company big or small) that falls on hard times should be able to try to work through those times. You can't sit here and tell me that if you were a business owner with say 500 or even 5 employees and you were having trouble making bills, keeping the door open, keeping all your employees or what have you, that you wouldn't do everything possible, including borrowing money if need be to keep the doors open. And then you would hope that your customers wouldn't take the attitude that so many here on snowest have taken. (Screw V-man I am going to buy from X-man) Please don't tell me that the minute you fell on hard times you would file for bankruptcy and leave all your suppliers and creditors holding the bag. That is not the American way! It is becoming the norm but is not the American way!

Well, Dodge never screwed me, and I like their products, hence the 2010 purchase. I saw their huge discounts as compensation for risk, whether that be future service and/or resale value. How many companies/products can you really boycott when the government is trying to own everything (Banks, Auto Industry, Healthcare, and who knows what's next)? All you can do is boycott the government involvement itself. Not buying a Dodge may be seen as a way to express that disapproval, but to me the good product and price out weighted the nearly unheard statement I would have been making buy not buying it. This isn't the same as a Doo/Harley dealer screwing you. Only a fool would do business with them again.

Companies fail all the time. The risk is taken by the executives, investors, employees, and shareholders. Borrowing additional money to stay operational can be done by additional stock offerings or seeking additional venture capital. If the investors believe in your company they'll take that risk. If no one believes you'll survive, then unfortunately you're done. Having US taxpayers, who have no say in the matter, invest their dollars into a failing company is certainly not the American way. I'm not a bankruptcy expert, but restructuring doesn't always mean your off the hook for all debts and all employees are fired.

The bad decisions made by labor unions, boards, and executives drove them into the ground. The bad business practices that got them where they are are tough lessons learned. That's the tough part about capitalism, but it's fair. Your competitors that did not make those same mistakes deserve the business.

 

[markgyver]

Chrysler wont even exist in 5 years let alone pay back any money.

 

[skidoorulz]

Don't bet on it. It will exist but possibly under a new name. It's called evolution. Remember Fargo in Canada? It evolved into Dodge. Or how about Mercury pickups in Canada? They evolved into Fords. There have been many more just can't think of them off hand.

 

[Ollie]

Don't bet on it. It will exist but possibly under a new name. It's called evolution. Remember Fargo in Canada? It evolved into Dodge. Or how about Mercury pickups in Canada? They evolved into Fords. There have been many more just can't think of them off hand.

That only applies if the givernment stays out of the way.
If that were the case, GM would be gone and some other company would now be making their products.

 

[skidoorulz]

I have nothing to do tonight. Chrysler has paid back both the uS and Canadian governments in full 6 years early. How does the words taste now that Chrysler would not exist in 5 years? Anyone else want to eat their words?

 

[skibreeze]

I'm glad that they paid the money back to the taxpayers. The reality is that they simply found another source to borrow the money that they don't have. Not really much to brag about IMO.

 

[skidoorulz]

The reality is that Chrysler has turned around and has become profitable enough and has a business plan for the future for financial institutions to loan them money so they could repay the government loans. My point is for all those who said we have seen the last of that money that they were wrong. I think it is plent to brag about that this company was brought from the brink of disaster back to a point to where they can seek sources of funding to pay back the whining uS taxpayers that were so against this in the first place. You can darn well bet that the ones that were whining the most had nothing to lose by Chrysler going under, ie their jobs.

 

[ruffryder]

Good news. I am all for keeping as many manufacturing jobs here as possible.