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>How Can This Happen In America?

>The Obama Government Is Stealing Assets of Honest Americans

This is the email I received today. It’s a crying shame that because Chrysler and GM are in bankruptcy (forced there by the terrible economic situation we have which was partly fed by the stupid run-away spending for banks that Obama is responsible for. If you have an answer to this insanity, leave a comment and I’ll make sure it gets back to the car dealer in Melborne, FL which is just 50 miles from us here in Orlando.

My name is George C. Joseph. I am the sole own er of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.

We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.

I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.

On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as “new,” nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Ch rysler to buy back the vehicles or parts inventory.

Our facility was recently totally renovated at Chrysler’s insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.


This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster..


I beseech your help, and look forward to your reply. Thank you.


George C. Joseph
President & Owner
Sunshine Dodge-Isuzu

Please forward to all US auto buying people you know!


>This is Unheard of – Unions Owning Chrysler and GM?


Automaker to Enter Alliance With Fiat, White House Says

The U.S. will provide financing during the bankruptcy proceeding, which officials envisioned as a swift, “surgical” process.

A Roadmap to a Chrysler Bankruptcy

There could be a very public brawl between the government and a group of Chrysler’s lenders.
The Chrysler world headquarters on Tuesday in Auburn Hills, Mich.
Bill Pugliano/Getty Images
The Chrysler world headquarters in Auburn Hills, Mich.
As Detroit Is Remade, the U.A.W. Stands to Gain
The union could gain significant shares of General Motors and Chrysler, giving it a voice in the companies’ futures.

>What If Chrysler and GM Go Bankrupt — Why Did Our Smart President Spend So Much of Our Hard-Earned Money On Them? What Say You, Mr. President?


NYT: U.S. reportedly preparing Chrysler for bankruptcy… as early as next week

According to a story from The New York Times, the Treasury Department and Chrysler are readying Chapter 11 bankruptcy documents for filing as early as next week.

The report goes on to say that the filing carries with it an “agreement in principle” with the United Auto Workers that would protect members’ benefits packages, including pension and retiree health care obligations.

Whither Fiat? Apparently, the Italian automaker is still very much in the picture, although under this arrangement, it would not reach its stake-holding deal until after Chrysler is already in bankruptcy court. The big outstanding question is where this leaves Chrysler’s lenders, who are owed nearly $7 billion.

Some industry watchers are apparently wondering aloud if the bankruptcy filling preparation work is merely a ploy to turn the screws on lenders, who have balked at previous proposals designed to reduce Chrysler debt. More details at the link below.

Chrysler’s response to the NYT article is posted below the fold.

[The New York Times | Image: Bill Pugliano/Getty]

>Sound Advice From Martin Weiss

>If government bailouts truly rescued companies, jobs and the economy, Washington might be able to argue that they worked.
But, unfortunately, despite all the money spent, lent and guaranteed, these companies are going bankrupt anyhow.
The prime example: After throwing billions at failed automakers last December, Chrysler is now just days away from bankruptcy, and General Motors could be close behind.
Under an agreement with the U.S. government, Chrysler must restructure its debt no later than next Friday or file for bankruptcy. But the company’s creditors are stubbornly refusing to accept stock in the failed company in lieu of payment.
Meanwhile, an eerily similar scene is being acted out at General Motors: Despite the $13.4 billion Washington gave the company last December, GM is now facing a June 1 deadline to restructure or to file for Chapter 11.
Think of it: In the next 37 days, it’s likely that not just one, but TWO of our nation’s largest companies … two of our largest employers … will go broke despite the biggest auto industry bailouts in history!
The lesson is clear …

These Bailouts Don’t Save Failed Companies.
But They Do BANKRUPT Our Children!

They just add dramatically to our debt burden for generations to come, prolonging the agony for all concerned.
This is why it is so important that you read The Ultimate Depression Survival Guide — and the sooner, the better.
At a critical time like this, I feel it is absolutely essential for you to have the clear, uncompromising unhedged truth about this crisis to avoid being taken in by Washington and Wall Street spin — AND to take full advantage of the many profit opportunities these markets offer us!
And this is also why I’ve made sure The Ultimate Depression Survival Guide won’t cost you a red cent.
Right now, you can buy all the copies of The Ultimate Depression Survival Guide you like for just $15.37 on — a $12.58 discount off the cover price. Or you can get it on Barnes & Noble, Books-A-Million and Borders, online or offline.
When you do, just tell us how many copies you purchased: We’ll immediately and automatically credit your account for $29.95 for each and every copy you buy!

>> When you buy additional copies for your family, friends and neighbors, you’ll be helping them get through this crisis in greater comfort and safety …
>> By purchasing and sending copies to your elected representatives, you’ll help us stop Washington’s worthless bailouts before they bankrupt future generations …
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To take full advantage of your credit and to order The Ultimate Depression Survival Guide for yourself, your family, friends, neighbors and your elected representatives, simply click here.
Plus, after you’ve ordered, don’t forget to also sign our petition demanding that our leaders STOP these worthless, useless, pointless bailouts before they bankrupt our entire nation.

So far, nearly 30,000 taxpayers and investors have signed our petition — but your opportunity to add your voice to ours will end next week.

The reason: That’s when we will print these petitions and I will personally deliver them to our nation’s leaders in Washington D.C.
You still have time: Just click here to add your voice and to join this fight to preserve our children’s futures.
Look: It’s bad enough that hundreds of thousands of our fellow Americans are likely to lose their jobs when GM and Chrysler fail.
We can NOT allow Washington to add insult to injury by continuing to throw our money at companies that are going to go bust no matter what!

>Get It Right On GM Warranties, Obama, Will Ya’

>Men Make Such Bad Decisions When Under Duress

Now that the Barak Obama Administration owns General Motors and Chrysler — or at least with their naming of the board and a president it looks like they’re in control — or should I say totally out of control — what about ongoing losses and expenses?

GM and Chrysler are losing entities. Here are some of the continuing expenses Obama lifted from these two auto makers by inserting us taxpayers in their place.

1. Warranties — who will pay for all the warranty work that will need to be done to satisfy current new car owners, and owners of cars still under warranty that aren’t new?

2. What about other loans and outflow of funds that these giants have accumulated?
 I mean suppliers. They probably owe suppliers millions of dollars. Anyone bother to do an audit to determine the possible maximum outflow to be swollowed by the American taxpayer? NO!

3. How about pensions? That includes union and non-union workers and 401k programs. Most of them are written so that if the insurance carriers default, the company is on it for the full value of the pension. What about retirement money promised to officers and board members? They are valid contracts, even the gold and silver parachutes. 

These American auto makers likely still owe millions to people and companies all over the globe. Who will stand behind these guarantees? Who will pay these moneys? GM and Chrysler were not allowed to go into bankruptcy, remember, so they can’t stiff their creditors. Or can they? Maybe Congress will pass a law — unconstitutional, at least — that will allow Obama to bypass these creditors. He already bypassed Congress when he decided to start running these car companies.

When you do one illegal thing, it begats more illegalities, Barak. It was illegal for Hank Paulsen to lock GM and Chrysler in a room and tell them he wouldn’t let them out until they signed over their companies to the government and promised not to take their firms into regular bankruptcy. That was illegality number one.

Isn’t it interesting that Paulsen, Larry Summers (Obama’s chief financial advisor), and Timmothy Gaithner, treasury secretary, all were working together at CityBank before they were called into government service. Yet CityBank, no matter what crummy condition they were in, was one of the banks that was “too large to fail.” That’s because all three have their own personal 401k plans with City Bank. If it were allowed to fail it would result in a loss of millions of dollars of retirement funds for these three chosen ones. This evil man Hank Paulsen did this same trick to AIG and Bank of America. AIG was told it couldn’t take out bankruptcy, it had to take the money. They didn’t elaborate, however, on how the government would be running AIG henceforth.

As for Bank of America, I wrote a story in Angst Blogger yesterday that AIG would like to repay the $48 billion they got from the government, sometime soon. But the Obama people won’t let them pay it back. They’ve gotten used to the power and they don’t want to give it up, not just yet. Remember that Bank of America took over Countrywide Mortgage and CityBank as part of the deal to give them this money.  What a tangled mess we have. We the taxpayers also paid $180 billion to AIG and are running that company, too.  All of it was a mistake. All of them should have been allowed to take out bankruptcy. Some day someone will untangle all of this and find that the unholy troika of bad people, Gaithner, Pattersen, and Summers, should go to jail. Have your fun fellas, but sooner or later the bubble will burst and you’ll get caught. As I said, one bad mistake begats another, and another, and another.

It’s like running the stop sign where the cop is hiding. You see flashing red and blue lights in your rear view mirror and you decide to outrun the cop. A long, high-speed chase ensues with both cars going over 100 mph and other cop cars are called in. A barracade is set up, but the stop sign-runner blasts his way through that and goes down the road.

Two cop cars finally catch up and come alongside, banging their cars into his. One of the cop cars overturns and the driver is killed. The other pulls out a gun and tries to shoot the tires of the speeding perp car. But the perp’s passenger shoots back and kills the pursuing cop.

 Now the perp is wanted for murder in four states and is going out of his mind. See what I mean, when one thing goes bad it all goes bad? That’s number eight hundred seventy four on Murphey’s list of bad things to expect to happen when one thing goes wrong.This same driver now is going 120 mph to avert capture and suddenly his car goes off a cliff, killing him and his passenger. We make such terrible decisions under duress.

3. What about the other car manufacturers GM and Chrysler own? Who will manage them? I mean Volvo and Saturn for GM and how many others for Chrysler I’m not aware. By the way, whatever happened to that “forced marriage” of Chrysler and Fiat? Chrysler was given an ultimatum by the government, “take their
money or bankruptcy!”  That’s the only good piece of advice anyone has given.

My take: I believe we have gangsters running the government. The biggest three of late were Hank Paulsen, former treasury secretary; Ben Bernanke of the Fed, and the biggest of all, Timothy Geithner, current treasury secretary. How can they get away with strong arming these banks and car companies? Some of the leaders of GM and Chrysler — if they had an ounce of guts and money to pursue the government at this point — ought to band together and sue the government. If that doesn’t happen, there will be mahem on the streets because sooner or later the word will get out and people like me and you, the American taxpayer who is getting stuck for all of this baloney, just won’t stand it any longer.

>Now’s Time To Negotiate On A New Car

> Save on the 2008 Year End Clearance

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>Mortgage Refinancing Skids to 4.5%

>First Line News – Business –
Friday, December 19, 2008

Fed OKs Credit Card Crackdown
Cash-strapped consumers got some welcome news on Thursday when regulators voted to rein in controversial credit card practices. But they’ll have to wait another year and a half to get relief – the new rules won’t take effect until July 1, 2010.

How Shutdown Really Saves Chrysler Money
A temporary plant shutdown gives an automaker the chance to stop making cars and sell off the ones that are still sitting around. But in Chrysler’s case, the benefit comes from the money it saves on day-to-day costs.

Mortgage Refinancing Surge Expected
Homeowners are being tempted to refinance their mortgages as the nation’s struggling economy produces the lowest interest rates in nearly a half-century.

Mortgage Rates Tumble to Lowest Since 1971
“A whole new game,” mortgage broker says; but labor market still weak.