Las Vegas, NV– 
As UAW and Fiat agreed to ownership positions in the remodeled Chrysler and the Canadian Auto Workers ratified their latest contract, the remaining piece of the Chrysler survival kit remains uncertain.
[5/27/09- only the Indiana pension fund (1%) is arguing the BK proceedings as unjust.]
The bankers holding notes worth pennies on the dollar if Chrysler goes BK, must decide if saving Chrsyler in a three way ownership split will bring them a payoff, and how soon. [ currently value offer .29 on the dollar]
If the handwriting is on the wall after the GMC decision last week and the announcement of Pontiac’s execution on July 1. [Saturn, Saab not far behind.] The bankers have to be wondering if a bird in the hand…
Consider the possibility that given the union amendments and Fiat “small car” infusion, American car buyers may continue to shun the domestic manufacturers. Management of Chrysler will remain in Nardelli and Co. hands, which is entirely up to Feingold, as Chrysler is a PRIVATELY owned company. The fact is, the Bankers should be knocking on Cerberus door, not the Feds. The only reason we care about this particular company going bust is because it’s part of the largest employment sector in the country, an now isn’t a good time for 250,000 layoffs.
However, the true Vegas odds makers in Automall Row seem to think the bankers will bluff, hoping that (1) the government will add to the pot or (2) the value of the parts of Chrysler are worth more than the company as a whole.
In either case the Dodge truck owner may see his/her Cummins Diesel limp into extinction thanks to the EPA, DPF and NHTSA safety ratings that cooled the excitement over a box in the bed-rail.
President Obama says all factory warranties will be honored and parts will be available for some time to come, but that doesn’t make the disgruntled 2007-2008 Dodge Ram 2500/3500 Cummins 6.7l owners happy as prospects for a lemon law buyback disappear.
Perhaps Dodge truck owners can get themselves listed on the creditor list of the BK? That way, they can get in front of the bankers for their payoff in penny weight, those trucks weight over 6,000 lbs. The other option is that the diesel division of FIAT will fix the DPF problem of the Cummins, or maybe not, since our air quality standards are much stricter than Italy’s. Come to think of it, will Fiat even bring a diesel “500″ across the ocean?
Given all the obstacles to this Chrysler menage atrois, maybe FIAT waits for the bankruptcy discharge, picks up a few Chrysler factories on the liquidation cheap, and salvages the dealer network left hanging. Seems to me the fix is in for Chrysler, but FIAT hasn’t asked the bankers for a loan, so selling the assets could be the best recoup available in the shortest period of time. Then there’s always Uncle Steve.
UPDATE: BK Judge considers the stake of FIAT vs. selling the individual assets. MY CARLADY’S Sarah Lee has another idea. Check in here: FIAT NEXT?
________________________________________________________
NEED AUTO FINANCE HELP or CREDIT report repair go to www.ecreditautoadvisor.com tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.
Top learn more about getting your best car deal click here: CAR DEALS
Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com.
COME BACK tomorrow for a MY CARLADY TEST DRIVES of the new KIA SOUL!
More From MyCarlady®
Available Cars
Download Free MyCarlady Podcasts:
