Chrysler gets first $4 billion from government
Two days after General Motors got its first installment of cash from the Treasury Department, Chrysler also closed on its loan. On Friday, Chrysler received a transfer of $4 billion to help tide it over while management tries to find a way to right the ship. CEO Bob Nardelli acknowledged the complex arrangements that had to be made with privately owned Chrysler. It's not known at this point exactly what arrangements were made as far as collateral and what the government would get from Cerberus in the event of a default by Chrysler. No doubt the comments will be heated on the Chrysler Blog.[Source: Chrysler]
Statement Re Federal Assistance Received
Auburn Hills, Mich., Jan 2, 2009 - Chrysler Chairman and CEO Bob Nardelli said on behalf of the leadership team, that he was pleased to report that the Company's discussions with the Treasury Department have been completed, and that today, Chrysler received an initial $4 billion loan to help bridge the current financial crisis.
"We recognize the magnitude of the effort by the Treasury Department to complete the multiple financial arrangements and appreciate their confidence in Chrysler. We would like to thank the many constituents whoworked with us to meet the loan requirements. This initial loan will allow the Company to continue an orderly restructuring, while pursuing our vision to build the fuel-efficient, high-quality cars and trucks people want tobuy, will enjoy driving and will want to buy again."
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Reader Comments (Page 1 of 3)
verytuscan 1:32PM (1/03/2009)
How did they print the money that quick?
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Duke 1:45PM (1/03/2009)
It's called INFLATION, bro; It's why this country is in the gutter.
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SimbaDogg 10:02PM (1/05/2009)
Mmm...i know this is going to be causing long term inflation, but right now, during the current recession haven't we been suffering from deflation? the lower consumer price index in the last 30 years or so? at least...thats the rumor i've been hearing on cnn. i know the deflation will be short term, and eventually the CPI will return to "nominal" levels in the next year, maybe year and a half...but lets not beat the inflation horse to death yet.
Velvet_Kevorkian 3:16PM (1/06/2009)
Sorry, but you are mistaken. We have been in what is becoming more commonly known as the Silent Depression. It's obviously here, but no one dare speak of it. Take an economics class and discover what is necessary to put a market like ours into a depression.
Sign, sign, everywhere a sign.
Expres 1:45PM (1/03/2009)
Haven't you seen the practice Bush has had the last 8 years? He was been printing money to keep the war chugging along at some $1 billion per month, so whats an extra $4 billion?
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Sea Urchin 2:29PM (1/03/2009)
It is so sad what you just said and yet it is so true.
I mean if you are printing money why not print for something usefully.
Randy 4:31PM (1/03/2009)
Umm... Make that
$20,000,000,000.00 a month for the Iraq war alone
Shouldn't American and other country's dead soldiers families get free fuel for life from Iraq? Hmm! As if it's worth the loss!
Frank 8:38AM (1/04/2009)
Except that Obama is going to spend way more than $4 billion or $17 or $25 billion on the automakers as payoff to the unions bosses. But I guess if HE is doing the spending it's ok then right? Oh and then there is the $700 billion that he planning on spending on an economic stimulus package. He will spend money like it's water and Reed and Pelosi will give him everything he wants. But if the media doesn't report it and Bush haters don't say anything about it when they complained bitterly that Bush did it - will it really have happened? It like that tree that falls in the forrest that no one witnesses.
Randy 10:56PM (1/04/2009)
@Frank
The guy isn't even in office yet nor has he announced a plan for that. You must be one of those people that slander the guy you didn't vote for in an attempt to discredit him.
Fact is, whatever PRESIDENT ELECT OBAMA spends will be to fix what the RETARD of a president George W Bush broke.
No offense to retarded people....
And note... ANYTHING that happens in the next 18 to 24 months that's bad is Bush's fault. So the day when Obama steps in, pause your blames for 18 months or so. After that it's fair game unless it's obviously from the previous administration!
It disturbs me to think that folks think like you!
Hey, it's a free country right? Um, except for all the freedoms President Bush took from us. Guess we can blame that on Obama too right?
Artie Lange 2:03PM (1/03/2009)
The title of this article is wrong. It should read "Chrysler gets first $4 billion from American People". The government isn't some magic, money-printing machine. Every penny comes from you, the American people. I hope you like what its doing with your money. If you don't, in the next elections remember to vote against those who supported it.
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Alex Nunez 2:06PM (1/03/2009)
Amen.
nardvark 2:26PM (1/03/2009)
Actually it really comes from a subset of the American people, namely those under 30 or so. The baby boomers have run this country into the ground, and they want my generation to finance their mistakes. Oh, and they aren't willing to entertain the possibility of cuts in social security and medicare, because they're entitled to it, but heaven forbid we make the system solvent so that I ever see a cent back.
There's a reckoning coming, I hope you've been nice to your children and grandchildren.
Insiderunknown 2:40PM (1/03/2009)
Seeing as the country is in debt hundreds of millions of dollars, simply taking money from you and or me isn't possible. Nobody knocked on my door this week and asked for my contribution. No, spending was cured this past week to make $4 billion magicly available, therefore we are printing new money, since the money collected from yours and my taxes was spent long ago as well.
Glenn 4:01PM (1/03/2009)
Actually .. the Debt is so large (it was enormous before the mortgage crisis) the tax payer is lucky if they are even able to pay the interest on the debt. Essentially, government CAN "just print money" .. the tax payer has for many years been given an incredible net gain compared to what they actually pay in the US.
Over the next number of years, they government will have to print lots of money if they want to keep people working -- paying tax, buying things, paying off loans, etc.
In reality .. at this point .. it is truely the government giving to the people. Until the US returns to a budget surplus situation it is money coming to the tax payer and not visa versa.
nardvark 4:59PM (1/03/2009)
Right, and those future budget surpluses you optimistically imagine mean that the government at that point is overtaxing its citizens to pay for past transgressions. I understand the need and value of a federal government that can pick up economic slack during a recession, but we're taking it to absurd levels, with no promise that the money will be spent responsibly. Instead, we're going to get $1 trillion of mass transit that will be underutilized, education spending that will be squandered on stupid projects like laptops for every student (not just unnecessary, useless), and a host of local infrastructure projects that exist solely to please union bosses who contributed $400 million to political campaigns last year.
AZMike 5:42PM (1/03/2009)
it never ceases to amaze me about the total ignorance concerning this loan.
please notice the last word I wrote above: it's LOAN. just like in 1980, when it was also erroneously called a government bailout. in both cases, they are loans.
and just like in 1980, I'm sure Chrysler will be paying it back early, much to the total chagrin of all the naysayers.
can't wait to see all the comments of disappointment here on Autoblog when that happens!
AZMike
happy_penguin 8:17PM (1/03/2009)
Sorry AZMike, this time I have to disagree with something you said. It HAS ceased to amaze me.
Artie Lange 8:26PM (1/03/2009)
Hey AZMike, if you were about to go bankrupt and asked the Feds to bail you out, would they? Me neither, and that's the point. There are much better things that could be done with the "loan" we're giving a failed industry that has no one but itself to blame for the position its in. No matter how you want to label it, or how quickly it is or is not paid, the industry doesn't deserve it, and it shouldn't have gotten it. Ignorance, indeed.
redcars 9:40PM (1/03/2009)
I'm sure Cerberus could scare up the money themselves, but even they're not sure Chrysler will make it. Better to make that bet with other people's money - taxpayer's money - rather than their own. It's unrealistic to think Chrysler can crank out a bunch of K-cars, expect Americans to buy them, and everything will be OK. The landscape has changed. Cars are more complicated and take more money to develop, competition is tougher, consumers a lot smarter, financing is a bigger problem, unemployment is rising, etc.
tankd0g 12:42AM (1/04/2009)
So AZMike, who is Lee Iaccoca in this little fantasy world of yours? Remember him, the guy with a PLAN?