Chrysler to file for bankruptcy...

[Latina]

WASHINGTON -- Officials tell the AP that Chrysler will file for bankrutpcy as talks with creditors fail.

The No. 3 U.S. automaker faces a government deadline of 11:59 p.m. Thursday to have deals in place with labor, creditors and Italian automaker Fiat. Two of the three pieces appeared to be in place. A small group of debtholders were the remaining obstacle, as they hold out for a better deal from the U.S. government.

Talks between Chrysler LLC's lenders and the Treasury Department to reduce the automaker's secured debt and keep it out of bankruptcy protection broke down early this morning, a person familiar with the talks said.

Four banks with 70 percent of Chrysler's $6.9 billion debt had agreed to erase it for $2 billion, or less than 30 cents for each dollar held.


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[MrKhay]

Where did the taxpayers billions of bail-out dollars go?

[Latina]

Originally Posted by MrKhay

Where did the taxpayers billions of bail-out dollars go?

Good question...

[Latina]

Attorneys for Chrysler LLC say the company will file a motion by tomorrow morning to sell substantially all of its assets to Italian automaker Fiat, but the deal won't include eight plants.

While Chrysler faced its first hearing today in Manhattan bankruptcy court, court documents show the ailing automaker plans to close five more plants in Michigan, Missouri, Ohio and Wisconsin that employ about 4,800 people. Chrysler says they will be offered jobs at other plants.

Of the other three plants, two are already closed, and the other is already slated to be replaced by a new factory.

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MADISON – Governor Doyle today gave the following statement regarding Chrysler’s plan to close its Kenosha plant.

“This plan is contrary to what Chrysler has been telling us all along,” Governor Doyle said. “Now we find out through the news media that they may be shipping Wisconsin’s jobs to Mexico. This is outrageous. Wisconsin workers are willing to invest their hard earned tax dollars to help save Chrysler but it is unfair to ask those same workers to sacrifice their jobs to save a foreign plant making the exact same product.”


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[kmfarm]

Originally Posted by Latina

MADISON – Governor Doyle today gave the following statement regarding Chrysler’s plan to close its Kenosha plant.

“This plan is contrary to what Chrysler has been telling us all along,” Governor Doyle said. “Now we find out through the news media that they may be shipping Wisconsin’s jobs to Mexico. This is outrageous. Wisconsin workers are willing to invest their hard earned tax dollars to help save Chrysler but it is unfair to ask those same workers to sacrifice their jobs to save a foreign plant making the exact same product.”


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Once again, Doyle shows his ignorance. It doesn't matter what Chrysler told him, they're not calling the shots. The White House is.

[kmfarm]

White House calling the shots:

www.washingtonexaminer.com >> Politics >> - White House puts UAW ahead of property rights

[Latina]

Chrysler cuts would hit 18 Wisconsin dealers


Chrysler on Thursday identified nearly 800 new-car dealers nationwide that it wants to close as part of its bankruptcy restructuring, including 18 in Wisconsin. But some dealers on the list said the details weren't yet clear.

Russ Darrow, chief executive and owner of Menomonee Falls-based Russ Darrow Group, said his dealership in Madison is on Chrysler's list - but so are Don Miller Chrysler-Jeep and Don Miller Dodge in Madison.

"Chrysler is not abandoning Madison," Darrow said. As he understands it, the company wants the two dealer businesses to meet and come up with a plan so there will be Chrysler dealerships on Madison's east side and Madison's west side.

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Dealers in Wisconsin that Chrysler wants to cut, according to its filing in U.S. Bankruptcy Court:

Frank Boucher Chrysler, 4141 S. 108th St., Greenfield

Braeger Chrysler Jeep, 6133 S. 27th St., Milwaukee

Chilson, Eau Claire

Russ Darrow Chrysler Jeep, headquartered at W133-N8569 Executive Parkway, Menomonee Falls

Dodge City of Milwaukee, 4640 S. 27th St.

Don Miller Chrysler-Jeep, Madison

Don Miller Dodge, Madison

Ernie von Schledorn, Lomira

John Quaden Dodge, Okauchee

Johnson Motors of St. Croix, Saint Croix Falls

Lakeland Jeep, Oconomowoc

Larsen Auto Center, Frederic

Mueller Chrysler, Oshkosh

Plach Automotive, New London

Quinn Motors, Ellsworth

Schocker Chrysler and Dodge, St. Nazianz

Van Lieshout and Simon Dodge, Kaukauna

Wolf's Motor, Plymouth

Nationwide, Chrysler plans to eliminate 789 of its dealers - or about 25% of them - as part of its restructuring process.


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[kmfarm]

Not sure how closing dealerships helps. They're not on the payroll, they buy the cars, they pay the employees, they buy the parts, they pay for the property.

It's the dealers taking the risk. What's the savings for the company?

Maybe they need more dealers, not less.