• 43
Details are scarce at the moment, but word is emerging that Chrysler's lenders have reached a deal with the U.S. Treasury Department that could help stave off bankruptcy.

According to a Reuters report, word is that the Pentastar's first-lien lenders have agreed to write down the $6.9 billion in secured loans they are owed to just $2.0 billion, although there are no details as to whether lenders will receive an equity stake in exchange. That news comes on the heels of Chrysler's announcement that they have already agreed to new terms with the United Auto Workers and that Daimler has agreed to give up its remaining share in the company.

While a deal between Chrysler lenders and the Treasury is key step in the company's reorganization efforts, the planned merger with Fiat will still need to be firmed up by the Obama Administration's April 30 deadline if additional federal funds are to be made available.

*UPDATE:
Bloomberg is reporting that the UAW's retiree health care fund has agreed to halve Chrysler's $10.6B debt to the trust in exchange for 55% of the automaker. As part of that deal, the trust will reportedly gain representation on Chrysler's board of directors – effectively meaning that the UAW will likely have at least one seat at the table.

[Sources: Reuters; Bloomberg | Image: Bill Pugliano/Getty]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 43 Comments
      • 6 Years Ago
      I would love to see how the opinions of all the haters would change if it were their jobs on the line. People just don't get it, Chrysler and GM failing would create huge unemployment and a huge hit to our economy.
        • 6 Years Ago
        Still not a reason to prop-up failure.

        You can't run a business on failed products and nostalgia.
        • 6 Years Ago
        Luis - How exactly is a 300C, a Wrangler, a Ram, a Grand Cherokee, a Charger and a Challenger a "failed product"?

        Or is anything that doesn't suit your idea of a good (imported) product a "failed product"? If that's the criteria then IMHO, the Toyota Corolla is a "failed product".

        • 6 Years Ago
        "How exactly is a 300C, a Wrangler, a Ram, a Grand Cherokee, a Charger and a Challenger a 'failed product'? "

        I'd assume he was basing it on sales. Those cars generally don't appeal to a lot of customers (though they have their followers, Wrangler in particular), while the Corolla sells in very large numbers worldwide, regardless of your opinion of it.

        In the end, the purpose is to sell cars and make money. If the cars that make you money are rather dull, so be it.
      • 6 Years Ago
      Does anyone else look at the word Billion and not even think it's much money anymore? I'm now at the point where Trillion is the word to get my attention.
      • 6 Years Ago
      So now the union will have to get concessions with itself on labor? Will the union strike itself for better wages and bennie's? Will it close plants to bring production inline with sales? How hard will it push on the next contract ? This is a conflict of interest ...
        • 6 Years Ago
        "We need to start loving ourselves again if we want to maintain a standard of living in this world economy."

        Couldn't have said it better myself. I don't understand this devotion to self-humiliation we seem to be caught up in. It's ok to be rooted in reality but you have to look towards the horizon and have hope once in a while or you may as well just shoot yourself or jump off a bridge.
        • 6 Years Ago
        Maybe for the better though. If Labor and management are a team they could be a formidable force if they have the disapline to do the right thing like you say cut back when needed.
        The UAW is going to have a controlling stake in GM as well by the looks of things.

        Hopefully things will play out well for Ford too in all of this.

        We need to start loving ourselves again if we want to maintain a standard of living in this world economy.

        War as we knew it has changed.

        Buy American when possible.
      • 6 Years Ago
      Its very good news for those of us who love cars and the American standard of living.
      God bless these American companys who were instrumental in giving us the tools to win the second world war and prosperity to follow.

      I appreciate the big 3 warts and all.

      If Japan can have 7 auto manufactures the US should be able to have 3.

      Love the New Dodge Ram, Nice truck!
        • 6 Years Ago
        With the UAW having a majority stake in Chrysler, they will actually care about the companies success. Whereas before, the employees were loyal to the UAW first and foremost.

        I wouldn't be surprised if Chrysler actually became competitive now that the employees know that the company's success (stock) is nearly 100% tied to their salary and retirement.
      • 6 Years Ago
      Ha Ha .The UAW is getting shares of Chrysler and a chair on the board!
      I knew it would happen.
      The government will keep sending our tax money to Chrysler and Government Motors to keep unions in power!
      What a joke.The government in the car business! Firing Ceo's and installing union goons!!Too funny.Damn democrats.
      • 6 Years Ago
      I think these clowns should either learn to save money for themselves so they can survive these recessions (Ford, anyone?) or the US government should be doing debt-for-equity and running the bloody companies themselves (since they're so important to the US economy that they had to step in to rescue them in the first place).

      Yes, it's a tragedy how many people will be affected were one of the big three to go under - but I think everyone through the company from factory workers to executives should be raising a $#!%storm that they were too stupid to keep some money on hand for rainy days.
        • 6 Years Ago
        Chrysler did have a rainy day fund back in 1998 (some say as much as $10 billion) for the next economic downturn so they could continue to pay expenses and still develop new product (usually one or the other is sacrificed) After Dumbler took over it "disappeared". Know one seems to know what happened to it. I've even heard some chalk up to different European accounting rules. Okie-dokie then.
      • 6 Years Ago
      The employees of Harley Davidson bought into the company back in the late eighties when it hit the skids.
      Harley came back strong.
      I think as of late Harley maybe having tough times as well.

      Don`t forget a while back the UAW didn`t want any stake in the companies.

      It do or die now.

      I think the UAW may have faced reality now.

      Two years GM told the UAW they were hurting to the Unions disbelief.

      The Union forced GM to open it`s books to prove its claim and then remained defient.

      I think the poker game between union and management is over.

      Union is still good, just that the UAW gone bad.
      I hope now they have cleaned up their act.

      Then who could blame them in the face of CEO`s pay checks.
      • 6 Years Ago
      @1337

      Your rantings are like Blur's Song 2. Fun and catchy for 2 minutes. Repetitive and nonsense when replayed.
      • 6 Years Ago
      There will be a Bankruptcy in the U.S. for Chrysler. Make no mistake, the last chapter in this saga is what to do with all the dealers?
        • 6 Years Ago
        Surplus Chrysler Dealers- Sing it all together now

        "Section 363 Means No More Me"

        This is Change We Can Believe In...
      • 6 Years Ago
      Well, however it goes, it's certainly going to be interesting.
      • 6 Years Ago
      Chrysler could be 100% owned by ''itself'' and the experts of the Autoblog community still wouldn't be satisfied.

      I personally am happy that Chrysler has pulled its feet out of the fire -- the new interiors, concepts like the 200C and the new RAM, Challenger and Grand Cherokee prove we're at the beginning of the new lean Chrysler.

      Now give me a Bravo-based Caliber/Neon!
        • 6 Years Ago
        Either sell me a Fiat 500 or stop wasting my tax money on your bailout.
        • 6 Years Ago
        Or a Hornet based on a 500.
        • 6 Years Ago
        Blah blah blah fanboy love.
        • 6 Years Ago
        I'm with you MembhisNET. There is NOTHING one can do to satisfy those who enjoy wallowing in negativity.

        I'm glad to hear the "good" news. (Whatever "good" means in relation to this current situation and economy.) I'm currently not in the market for a new vehicle and don't hope to be for several years. But I'm glad that the possibility still exists that, when I am, Chrysler and, more particularly Jeep, can still be at the top of my list.

        I've had wonderful service from your vehicles, and I've been rooting for you all the long, Chrysler. Continue to work it out!
        • 6 Years Ago
        @Aprime
        What do you drive? Do you like it? Would you buy again? Why shouldn't I be happy that a manufacturer I like is still around building the vehicles I prefer?

        @1337
        1) Cool name
        ...
        2) Loan. If ''your'' tax dollars weren't spent on this, they'd be spent on something else you don't like anyway. Is spending this money on keeping people working really that bad? Chrysler paid back their late 70's/early 80's loans ahead of schedule, and even though it is a bit sad they're needing the help again, the problem isn't isolated to Chrysler or the domestic manufacturers, it's a good percentage of the industry!
        • 6 Years Ago
        Oh come on, everyone knows Memphis is an overenthusiastic Chrysler fan.
        • 6 Years Ago
        And not that I have to qualify myself to some faceless internet poster, but I like ALL cars -- everything has it's place. I have ZERO interest in a Corolla, but I understand why people like it. I'm not a truck guy, but a totally appreciate why someone would want a Suburban/Yukon. I would never enjoy an S2000 the way some would because I love deep-down torque, not power in the upper band.

        And Civic's? They're like an a$$hole. Everyone's got one.
        • 6 Years Ago
        Pretty much. Theres some sort of sick fascination some posters here get from domestic companies failing and people loosing jobs.

        The concept of Free Trade and Fair Markets sound noble. Until the day your job gets cut/out-sourced.

        • 6 Years Ago
        Their interiors are improved, to be sure, but still aren't quite "there." It's still just a variation of the same old, same old. Decent overall design, but poor execution, especially in the materials selection and finishing. Also, the smell is still terrible.
      • 6 Years Ago
      I propose new names.

      Government Motors.
      and
      American Motors Union Corporation.

      GM and AMUC...

      as in government, GM, and Chrysler have run-amuc. (I know it is different spelling, but it is phonetically similar...)

      There isn't a chance in hell I will own a product of this socialist automotive industry. I pay taxes, and am losing out there. I am not going to let them get me to pay them from both directions.
    • Load More Comments