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| I was working on the loan... http://www.lostjeeps.com/forum/phpBB3/viewtopic.php?f=5&t=20688 |
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| Author: | skywarn [ Mon May 14, 2007 10:09 am ] |
| Post subject: | I was working on the loan... |
Chrysler sold for $7.4 billion 
DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history today -- agreeing to sell its money-losing Chrysler unit for a fraction of what it paid nine years ago. DaimlerChrysler will sell an 80 percent stake in its U.S. brand for $7.4 billion to Cerberus Capital Management, a private equity investment firm. German automaker Daimler-Benz paid $37 billion for Chrysler in 1998. more on CNN.com |
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| Author: | DarbyWalters [ Mon May 14, 2007 10:38 am ] |
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I wonder when we, the american people, will get back our investment in Chrysler when we, government of the people, bailed them out under Lee Iacocca in the 1980's. I always wondered if the "loan guarantee" was ever paid back by Chrysler??? |
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| Author: | truckbouy2 [ Mon May 14, 2007 10:46 am ] |
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Yes.. the loan was paid back in full by Chrysler. And I might add, our ever so benevolent Washington residing folk (you can add your own description as I don't want to get censored) was not happy about it as Washington wanted an influencing hand in Chrysler. |
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| Author: | chadhargis [ Mon May 14, 2007 10:57 am ] |
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Iacocca is a good man (at least in his book LOL!). I like the way he did business. In the book, there is a chapter where he talks about coming on board at Chrysler. He took a very low salary (can't recall the amount, but I think it was $1!) and vowed he wouldn't take more until he turned the company around. Then he proceeded to get a loan guarantee (not the same as a loan) from Uncle Sam. Pretty strong guy for sure. Here's clip from Wikipedia regarding Iacocca's stint at Chrysler. He was responsible for Chrysler owning AMC/Jeep: "Iacocca started as Chrysler's chairman, and began a heavy restructuring of Chrysler. At the time Iacocca took over, Chrysler was on the verge of bankruptcy, as it was focusing most of its money on large, fuel thirsty cars that the public didn't want due to a fuel crisis at the time. First, Iacocca announced plant closures, job layoffs, and his plans for the company. His next move was cutting several large models, which were heavily unprofitable, and put the subcompact Dodge Omni and Plymouth Horizon into production. The Omni and Horizon became instant hits, selling over 300,000 units each their debut year, showing what was to come for Chrysler - yet somewhat ironically the Omni and Horizon had been designed by the European division of the company which Iacocca had axed in 1978. Realizing that the company would go out of business if it did not receive a significant amount of money to turn the company around, Iacocca approached the United States Congress in 1979 and asked for a loan guarantee. While it is sometimes said that Congress lent Chrysler the money, it, in fact, only guaranteed the loans. Most thought this was an unprecedented move, but Iacocca pointed to the government bail-outs of the airline and railroad industries, arguing that more jobs were at stake in Chrysler's possible demise. In the end, though the decision was controversial, Iacocca received the loan guarantee from the government. After receiving this reprieve, Chrysler released the first of the K-Car line, the Dodge Aries and Plymouth Reliant in 1981, compact automobiles based on design proposals that Ford had rejected during Iacocca's tenure there. Coming right after the oil crisis of the 1970s, these small, efficient and inexpensive, front-wheel drive cars sold rapidly. In addition, two years later Chrysler released the minivan, based on a proposal of a key engineering executive Hal Sperlich who joined Chrysler after being dismissed by Ford; to this day, Chrysler leads the automobile industry in minivan sales. Because of these three cars, and the reforms Iacocca implemented, the company turned around quickly and was actually able to repay the government-backed loans seven years earlier than expected; most of it came from cars built on the K platform. Iacocca was also responsible for Chrysler's acquisition of AMC in 1987, which brought the profitable Jeep division under Chrysler's corporate umbrella. It also created the short-lived Eagle division, formed from the remnants of AMC. By this time, AMC had already finished most of the work with the Jeep Grand Cherokee, which Iacocca desperately wanted. The Grand Cherokee would not be released until 1992 for the 1993 model year, at which time Iacocca left Chrysler." |
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| Author: | spoonplugger1 [ Tue May 15, 2007 11:22 am ] |
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We also found out later that the money to bail out Chrysler was illegally removed from the native american land use accounts by the Interior Department. They have no record of ever being paid back to those accounts. They had to bail out Chrysler than, too many government essential projects like the Abrams tank, etc. were heavily tied to Chrysler. |
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| Author: | ATXKJ [ Tue May 15, 2007 11:44 am ] |
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The Government never actually spent any money on the Chrysler bailout - it was a gaurantee and the loans were paid in full by Chrylser- so no Government money ever went to Chrysler or to the banks. (I am not challenging that the Interior department diversion of funds to other Government projects - just not Chrysler, what I had heard was that their records were so bad they didn't know where the money went) |
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| Author: | Joe Romas [ Tue May 15, 2007 9:30 pm ] |
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Not only did they repay the government backed loan they repaid it early  They used it in their publicity and advertiements 
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| Author: | RedStapler [ Wed May 16, 2007 1:58 pm ] |
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spoonplugger1 wrote: We also found out later that the money to bail out Chrysler was illegally removed from the native american land use accounts by the Interior Department. They have no record of ever being paid back to those accounts. They had to bail out Chrysler than, too many government essential projects like the Abrams tank, etc. were heavily tied to Chrysler.
Chrysler sold the Defense division to General Dynamics in 1982. For a good account of the development of the M1 Abrams read "King of the Killing Zone" by Orr Kelly. |
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