We put up $10.5 billion to bailout an Italian company...

Chrysler will now be fully owned by Fiat...

Via CNN:

U.S. automaker Chrysler will become fully owned by Italy's Fiat under terms of an agreement announced Wednesday that also involves the United Auto Workers union.
The agreement comes more than 4-1/2 years after the Obama administration brought Fiat in to keep Chrysler in business as part of a packaged bankruptcy proceeding.
In a statement, Fiat said it has agreed to pay $3.65 billion for the 41.46% of Chrysler it doesn't already own from the UAW's medical benefits trust for retirees.
In addition to the deal, Chrysler will contribute $700 million to the benefits trust over a 4-year period. For its part, the UAW has agreed to support the automaker's plans to roll out vehicles and will drop a Delaware court proceeding over options exercised by Fiat in the acquisition of Chrysler.

Good News: Chrysler workers fired in 2010 for partying during lunch are back on the job...

Fox 2 News Headlines
The UAW fought tooth and nail for these drunken losers. They won in arbitration. This is why unions have transitioned to something evil...

Two years ago Fox 2 Problem Solver Rob Wolchek got a tip from someone inside Chrysler's  Jefferson North Assembly plant about what some workers were doing at the park on their lunch break.

For several days our TV crews followed some of these workers.

Play the video above to see what these guys were doing [...]

Chrysler suspended two workers and fired thirteen others.   [...]

And now this statement from the auto maker:

"Chrysler Group LLC acknowledges the reinstatement of a number of employees  from the Jefferson North assembly plant who were  discharged from the company in September 2010 after  appearing in a local TV station's story about their off-duty conduct."

Chrysler "Driving America" has creepy resemblance to Obama Logo

As if we needed another reason to never buy a Chrysler...

Congratulations: Your Tax Dollars Saved 8 of the 10 Worst Built Cars in America

President Obama thinks you should thank him for saving bailing out GM and Chrysler. What did you get for your money? 8 of the 10 Worst Built Cars For 2012 in America are made by either GM or Chrysler according to this list compiled by Forbes. Thanks President Obama and the UAW. The Smart ForTwo and Toyota FJ Cruiser are the only two not made by Chrysler LLC and General Motors.

That said, we poured over the latest data from Consumer Reports’ 2012 Annual Auto Issue to identify which models, based on a convergence of objective test results, could be considered the 10 Worst Built Cars for 2012. (See the accompanying slide show for the complete rogues’ gallery and selection criteria.)

We started by examining CR’s road test ratings and isolated the models that were ranked at or near the bottom, as noted by an aggregate score under 50. Overall ratings are based on more than 50 individual tests and evaluations, and are presented on a 100-point scale. We then identified those models that received the lowest marks for reliability, based on Consumer Reports subscriber surveys, and were cited for at least two other “worsts,” including bottom-of-the-pack value ratings, highest five-year operating costs, lowest owner satisfaction, poorest fuel economy in a given class and/or worst performance in accident-avoidance tests.

Of the 10 models that comprise our final list of 10 Worst-Built Cars for 2012, all but two of them, the Smart ForTwo and Toyota FJ Cruiser, come from domestic-brand automakers, specifically Chrysler LLC and General Motors. While those automakers have been making great strides in recent years with new and recently redesigned models, they’re still recovering from their near-death experiences in 2008-2009 and the laggards in their respective lines awaiting major makeovers or replacements continue to haunt them. Keep on reading...

Amusing Video: Halftime in America Chrysler Ad Parody

Halftime in America: Remy Chrysler Ad Parody

If you thought that Eastwood Super Bowl Ad looked Like an Obama Campaign Ad, here is why

The “Halftime in America” was made by a bunch of Democratic Party supporters with ties to the Obama campaign.

WASHINGTON — Chrysler’s chief executive is insisting his company’s Super Bowl ad starring Clint Eastwood has “zero political content,” even though members of the advertising team that created the spot have ties to President Obama.

Democrats, including the White House, cheered “Halftime in America” and its upbeat message in which Eastwood offers the auto industry comeback as proof of America’s resilience. Many Republicans, though, panned it, calling it payback for the government bailout Chrysler received in 2008. And Eastwood confirmed CEO Sergio Marchionne’s contention that the ad was not an endorsement of any candidate.

“We are as apolitical as you can make us,” Marchionne said in a radio interview in Detroit yesterday. “I wasn’t expressing a view and certainly nobody inside Chrysler was attempting to influence decisions.”

Eastwood echoed Marchionne’s comments.

“I am certainly not politically affiliated with Mr. Obama,” Eastwood told Fox’s “The O’Reilly Factor.” “It was meant to be a message ... just about job growth and the spirit of America. I think all politicians will agree with it.”

Still, the advertising agency that created the commercial — Wieden + Kennedy — has members who have designed Obama campaign items or who have worked on behalf of Democratic causes.

Clint Eastwood It's Halftime America - Chrysler Commercial (HD)

Chrysler spends millions on Super Bowl ad. Taxpayers lost $1.3 billion on bailout.

Taxpayers lost $1.3 billion on the Chrysler bailout. Chrysler is now spending millions on a Super Bowl ad that doesn't even mention the Chrysler name. The ad, featuring Clint Eastwood,  is very emotionally powerful, but I doubt it will sell a single Chrysler.

Clint Eastwood It's Halftime America - Chrysler Commercial (HD)

Obama denies he bailed out GM and Chrysler

President Obama bales Bush for the bailout of GM and Chrysler. He claims he "saved" them. The truth is Bush provided GM and Chrysler with $17.4 billion. President Obama ponied up $85 billion. Several billion will never be repaid.

(Washington Examiner) — President Obama today asserted that President Bush was responsible for bailing out auto companies in Detroit. Obama, on the other hand, implemented dramatic changes that saved the industry.

“Keep in mind,” Obama said, “That the administration before us, they had been writing some checks to the auto industry asking nothing in return. It was just a bailout, straight — straightforward.

Obama explained that he “demanded responsibility” from the auto industry, forcing it to “retool and to restructure,” making it “more efficient.”

“Over the past two years, that entire industry has added nearly 160,000 jobs.” Obama continued, “GM is number one in the world again. Ford is investing billions in new American plants. Chrysler is growing faster. So today, the American auto industry is back.”

Keep on reading…

UAW Fail: Chrysler Workers Toking, Drinking in UAW Parking Lot

But..but...the UAW is against this kind of behavior.

Chrysler Auto Workers in Trenton Caught Smoking and Drinking During Lunch Breaks: MyFoxDETROIT.com

Obama lies about Chrysler repaying bailout money

At a Chrysler plant in Ohio, President Obama claimed Chrysler repaid every dime of their bailout money. That is false. A $4 billion bridge loan and $3.2 billion in bankruptcy financing have not and never will be repaid. Only the money loaned Chrysler after the bankruptcy has been repaid. The US did get some shares of the new company and President Obama is touting their sale. The U.S. Government is selling their share of Chrysler to Fiat for #3.5 billion. Coincidentally, they are at the same time giving Chrysler a $3.5 billion loan fuel-efficient vehicle loan. Go figure.

Taxpayers take $1.6 billion loss on Chrysler loan

Losses from the taxpayer bailout of the UAW are beginning to pile up. The Treasury Department has announced taxpayers will take a $1.9 billion loss on a Chrysler loan. Total lossses may add up to as much as $34 billion.

WASHINGTON (AP)

Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.

Are GM and Chrysler Facing a Bailout Backlash?

September sales for GM and Chrysler have plummeted far below other car manufacturers.

From NewsBusters:

* The awful performance at General Motors -- down 45% from September 2008.
* Chrysler's even worse performance -- down "only" 42% from September 2008, but a mind-boggling 61% from September 2007 (62,197 in 2009, 156,799 in 2007)
* Ford's tiny decline of only 6% from a year ago, despite the end of the Cash For Clunkers program in August.

The bailouts for GM and Chrysler were aimed at saving the UAW at the expense of taxpayers, bondholders and dealers. The GM bailout alone is calculated to cost taxpayers $710,000 per employee.

After the 7,500 take their “buyout” and leave, GM will have 54,900 remaining hourly workers. (62,400 – 7,500)

The cost of “Bailout” part 1 ($17.4 Billion) and “Bailout” part 2 ($21.6 Billion) is $39 Billion Dollars.

If you divide the cost of the “Bailouts” by the number of hourly GM employes ($39,000,000,000 / 54,900 =) you get the figure of $710,000 per employee. (Seven Hundred And Ten Thousand Dollars Per Employee).

Using the UAW's number of $53 per hour, the wage and benefit package of a unionized auto worker comes to an average yearly salary of $114,400. This doesn't include overtime or bonuses. Using taxpayer money to payback Democrat's political supporters may have left a bad taste in the mouths of taxpayers trying to get by on half the UAW's wages.

Fiat loses a quarter of a billion in second quarter

How can a company lost over $250 million in the second quarter of 2009 save Chrysler?

FT reported:

Fiat, the Italian carmaker, on Wednesday reported a steep loss for the second quarter of 2009 in “an extremely difficult trading environment”, but stuck with its forecasts for its full-year financial performance.

The Turin-based group, which has sought to spearhead a global restructuring of the ailing automotive industry through its acquisition of Chrysler and attempts at taking over the European operations of General Motors, made a net loss for the three months to June 30 of €179m ($254m).

That compared with a net profit of €646m in the same period last year and illustrates the scale of the slump in the global car industry caused by the credit crisis. Revenues fell 22.5 per cent to €13.2bn, the group made a trading profit of €310m compared with €1.13bn in 2008, and net industrial debt decreased to €5.7bn from €6.6bn at the end of the first quarter.

“The global economic crisis continued to have a significantly negative impact on demand levels for all of the Group’s businesses, but with signs of improvement in certain markets compared with Q1 levels,” Fiat said in a statement on Wednesday accompanying the results.

Should Conservatives Boycott GM and Chrysler?

President Obama has flaunted the intent of bankruptcy law and trampled on the rights of bondholders and dealers in his quest to save the UAW. The government will now hold 60% of GM and a significant portion of Chrysler stock. Obama has practically nationalized GM. Is it time for Conservatives and Libertarians to boycott GM and Chrysler?
The Detroit News reported:

Washington -- A pair of right-wing radio hosts says there's only one choice for conservatives angry about government involvement in the auto industry: Boycott GM.

"Nobody wants to support an Obama company," Rush Limbaugh told his audience Friday, citing a poll showing that 17 percent of Americans backed a boycott of GM.

"Every dollar spent with GM is a dollar spent against free enterprise," conservative talker Hugh Hewitt wrote online last week.

Conservatives in Congress and elsewhere have criticized the federally sponsored restructuring plan GM will seek to execute in bankruptcy court.

The plan would give the federal government a 60 percent ownership stake in the company; lawmakers such as Sen. Richard Shelby, R-Ala., have labeled that socialism.

The popular, controversial Limbaugh didn't outright call for a boycott, but said he understood why people would want to avoid GM vehicles. "They don't want to patronize Obama. They don't want to do anything to make Obama's policies work."

A GM spokesman declined to comment Monday.

From Hot Air: Obama auto team called Chrysler shareholder lawyer a “terrorist” (video)

President Obama's flaunting of established bankruptcy law is a shameful. There will be long lasting repercussions for business financing. Who will loan a unionized company that doesn't have a stellar credit rating money now? No one will. Creditors will know they will have to go to the back of the line behind unions if the company is forced to file bankruptcy. This lack of financing will push more companies into bankruptcy or force the government to bail them out with our tax dollars. That may be Obama's ultimate goal. When companies are forced to look to the Obama administration for financing, they are effectively under Obama's control.

Hot Air blog reported:

When we last left the negotiations between Chrysler’s senior bondholders and Barack Obama’s auto task force, Thomas Lauria and his clients alleged that the government used intimidation tactics and threatened to sic the White House press corps on individuals if they didn’t give up their rights to allow the unions to win in the bankruptcy. Congress took an interest in this”madman” theory of the Presidency and got access to some e-mails floating between the task force and an analyst. Rep, Steven LaTourette (R-OH) reads from the e-mails, in which the auto task force calls Lauria — their attorney — a “terrorist” and refuses to negotiate after a Chrylser expert consulted him:

Well, There Is One Terrorist Obama Won't Bend Over For (video)

Obama administration thinks they are above SCOTUS

The Obama administration filed legal papers with the Supreme Court arguing that the SCOTUS had no right to hear the Chrysler bankruptcy case filed by Indiana debt holders. The Obama administration thinks they can do what ever they want with Chrysler and TARP money. From SCOTUSBLOG:

The Obama Administration argued Monday that no court, including the Supreme Court, has the authority to hear a challenge by Indiana benefit plans to the role the U.S. Treasury played in the Chrysler rescue, including the use of “bailout” (TARP) funds. The Indiana debt holders, U.S. Solicitor General Elena Kagan wrote, simply have no right to raise that issue, thus putting it out of the reach of the courts.

The government’s brief opposing a plea to delay the Chrysler sale can be downloaded here. The main case at the Court is Indiana State Police Pension Trust, et al., v. Chrysler LLC (application 08A1096). (The other filings in the Chrysler proceeding before the Court, and this blog’s weekend coverage, can be found at this link.)(emphasis mine)

Democrats Discover Dealergate

Yesterday, House Democrats sent a letter to President Obama asking for a "compelling justification" for the closing of Chrysler and GM dealerships. They finally realized some of these dealerships are in their districts and the methodology used to select which dealerships to close smells "very fishy." From Politico:

We are writing to express our concerns about General Motors' and Chrysler's decision to close profitable automobile dealerships across the country, and urge you to ask GM and Chrysler to delay final action on proposed closures pending further review of the decision to consolidate dealerships and the process by which Chrysler and GM selected the dealerships to close.

Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.

After closing GOP dealerships, Chrysler wants to open new dealerships

After closing 789 dealerships, almost exclusively GOP-linked, Chrysler now wants to open new dealerships. Perhaps some big DNC donors want to enter the automotive market.

Automotive News is reporting:

Chrysler did more last week than thin the dealer ranks in clogged metro markets. Chrysler also took out some underperforming dealers, leaving some good smaller markets without any Chrysler stores.

Chrysler President Jim Press said the company will be back in those markets.

Chrysler has been managing its dealer count downward in overdealered metro markets, a program called Project Genesis.

More confirmation Car Czar Threatened Chrysler Bondholders

There have been several reports of Chrysler bondholders being threatened by the Obama administration. Here is another report. I don't know what to make of this, but here it is.
Econo-blogger Finem Respice:

Today, I have the distinctly unpleasant distinction of being on the receiving end of exactly this sort of recollection. That is, a bit of dialogue so genuinely awful that- were it not from a source I consider impeccable, and unimpeachable- I would not dare to credit at all. Unfortunately, I must do precisely this, and personally believe it to be totally, frightfully accurate...

...I take no pleasure in relaying it, instead hoping that someone more directly in the business of running such matters down and printing them will carefully document it and- if true- expose it, or- if not- discredit it quickly and finally. This (as yet unproven) yarn goes exactly like this:

Confronting the head of a non-TARP fund holding Chrysler debt and unwilling to release it for any sum less than that to which it was legally entitled without compelling cause, this country's "Car Czar" berated the manager of said fund with an outburst of prose substantially resembling this:

Who the f*** do you think you're dealing with?

We'll have the IRS audit your fund.

Every one of your employees. Your investors.

Then we will have the Securities and Exchange Commission rip through your books looking for anything and everything and nothing we find to destroy you with.

It is a tale literally so outlandish and difficult to picture that, in these circumstances and given the source, it rings absolutely true. Consider all this in a larger context where... You see Non-TARP entities claiming that:

...we have been systematically precluded from engaging in direct discussions or negotiations with the government; instead, we have been forced to communicate through an obviously conflicted intermediary: a group of banks that have received billions of TARP funds.

...not to mention the fact that the salary, bonus and "stress test" results for TARP banks are all within Treasury's control...

One Brave Hedge Fund Manager Speaks Out Against Obama Bullying

According to the New York Times:

Clifford S. Asness is not afraid to defend himself against attacks from the Obama administration. The outspoken managing partner of AQR Capital Management, a $20 billion hedge fund in Greenwich, Conn., has written a scathing letter striking back at President Obama for his harsh words blaming hedge funds for Chrysler’s bankruptcy.

Here is an excerpt from the letter:

The President has just harshly castigated hedge fund managers for being unwilling to take his administration’s bid for their Chrysler bonds. He called them “speculators” who were “refusing to sacrifice like everyone else” and who wanted “to hold out for the prospect of an unjustified taxpayer-funded bailout.”

The responses of hedge fund managers have been, appropriately, outrage, but generally have been anonymous for fear of going on the record against a powerful President (an exception, though still in the form of a “group letter,” was the superb note from “The Committee of Chrysler Non-TARP Lenders,” some of the points of which I echo here, and a relatively few firms, like Oppenheimer, that have publicly defended themselves). Furthermore, one by one the managers and banks are said to be caving to the President’s wishes out of justifiable fear.

However, Clifford S. Asness is fearless:

The President’s attempted diktat takes money from bondholders and gives it to a labor union that delivers money and votes for him. Why is he not calling on his party to “sacrifice” some campaign contributions, and votes, for the greater good? Shaking down lenders for the benefit of political donors is recycled corruption and abuse of power. Read the full letter here.