CrusaderFrank
Diamond Member
- May 20, 2009
- 147,610
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Meh... What's 1.3 billion....
Proverbial drop in the 0bama-spendathon bucket...
Michelle can blow that taking her entourage out to lunch
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Meh... What's 1.3 billion....
Proverbial drop in the 0bama-spendathon bucket...
Before yesterday, Chrysler had said Fiat held options that included acquiring 40 percent of the original stake held by the UAW trust that pays for retirees health care. The option is exercisable from July 1, 2012, to Dec. 31, 2016, and in amounts of as much as 8 percent in any six-month period, according to the filing.
Model Milestones
Fiat gained a 20 percent Chrysler holding as part of the U.S. automakers government-backed restructuring in 2009. In exchange for sharing management and technology, as well as reaching operational milestones, Fiat receives as much as 35 percent of Chrysler without paying any cash. Marchionne has said he expects the final milestone, worth a 5 percent stake, to be reached by years end.
Marchionne is pushing Chrysler to raise its global sales this year by 32 percent to 2 million and turn an annual profit of $200 million to $500 million.
Chrysler had first-quarter net income of $116 million, its first profit since bankruptcy. Global sales rose 18 percent
Obama’s auto-czar Steven Rattner (one of many illegal czars) forced Chrysler into bankruptcy and a merger with Fiat, even as Chrysler proposed viable alternatives. Chief among the demands of the Obama Administration’s insistence that Chrysler merge with Fiat, the Italian automaker known for it’s manufacturing of small, eco-friendly cars.
Chrysler had apparently come up with plans and found enough savings to avoid Chapter 11, restructure itself, and remain a stand-alone entity. It was in the process of retooling its car market and discussing a possible merger with General Motors, another victim of the new Government Auto Task Force. The valuation of such a merger is considered far higher than the merger that ultimately happened with Fiat, and would have paid private bondholders in full, making a good free-market solution to the entire automobile crisis.
Obama’s auto-czar, however would have none of it. Even as the entire management team of Chrysler urged a different course, Rattner steered Chrysler towards bankruptcy and a merger with Fiat