• May 1, 2009
A court filing by the legal firm Jones Day estimates that 38,500 Chrysler workers will lose their jobs if the bankrupt automaker fails to quickly form an alliance with Fiat SpA and is forced to liquidate. In addition, if the deal with Fiat is rejected Chrysler LLC employees will lose $9.8 billion in benefits and $2 billion in pension payments, according to the legal team.

"Time is of the essence," said attorney Corinne Ball. The lawyers, in court seeking to organize the company's 25 affiliates into a one bankruptcy proceeding, stressed in yesterday's so-called first-day pleadings that if Chrysler dissolves, "it will mean the end of an iconic, 83-year-old American car company."

[Source: Bloomberg | Image Source: 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
  • 35 Comments
      • 5 Years Ago
      "..., who you think keep this country afloat doing back breaking labor so the average and college graduated joes can live a civilized life?"

      Illegal Mexicans ??
      • 5 Years Ago
      Bankruptcy is the only way to break the UAW union, and this is needed if American Auto industry wants to stay alive, liquidity is not gonna happen, first the government will probably take it in, restructure it and a couple of months later reissue stocks make some money out of it and drop it..

      This is all about politics and it was all realized at once, because the wages and benefits per hour are too high and management is really crap.

      UAW wants to stay in power, its really gonna hurt the employees..

      If they liquidate and start selling their assets it will be the worst thing they could do, because once they are rescued they will have nothing to lean on, it will be a name with no collateral... you want to buy stocks then? :)
        • 5 Years Ago
        Showdown time.

        The UAW is toast.
        Face it. The UAW cannot compete with China and a dollar a day wages.

        The D3 are history.
        You are watching history unfold before your very eyes.
      • 5 Years Ago
      How about making products people actually want...

      There's no magic voodoo that auto makers outside the US are doing to make products that people want to buy - they simply have a better product.

      It's not about buy American or buy China or buy Japan - consumers have a choice, and while yo

      The people at the white collar positions, designers, marketing etc. aren't doing anything smart. The blue collars are the ones that are suffering the consequence
      • 5 Years Ago
      The reason college degrees no longer guarantee success is because we
      have diluted the quality of education. The "I'm ok, you're ok"
      movement has convinced everyone that anyone can and should go to
      college. The truth is though, most do not possess the intellect
      necessary for advanced higher reasoning. That reality, however,
      hurts people's feelings, so we've simply made colleges easier. The
      result is a dumbed-down university education that has turned most
      colleges (save for the most elite schools) into nothing more than the
      13th grade where those of mediocre intellect are instructed in what
      they should have been taught in secondary school (basic arithmetic,
      simple composition, etc.).

      Of course, none of this excuses anyone from being proud to be ignorant, which is what a lot of these comments seem to be about.
        • 5 Years Ago
        College degrees never guaranteed success.
        • 5 Years Ago
        You need a college degree to become a NYC Police Officer, what's your point?

        I think what you feel to realize in your little blame game is that in the end, college or not, you are what you make yourself out to be. A degree or a job shouldn't define who you are completely.
        • 5 Years Ago
        They did a generation ago. Now you need one just to be a secretary, and that's not because a secretary's job has gotten more complicated, its because of education drift.
      • 5 Years Ago
      Better yet, why doesn't the government spend this money to retrain these workers for jobs in productive industries and with productive companies, rather than keeping Chrysler limping along for another 30 years?
      • 5 Years Ago
      You know, that's not as bad as I thought.
        • 5 Years Ago
        I think they are only including direct jobs, not dealers, suppliers and indirect jobs.
      • 5 Years Ago
      By the picture it only looks like a bunch of blue collar workers.. whatever.... they should've gone to college.
        • 5 Years Ago
        Typical college elitism, I saw it every day I was there. Whether it be the profs or the students, there are a fair amount of them that assume that text book knowledge makes them a superior being to the rest of those 'fly over' states.

        Good luck with life, you'll need it with an attitude like that, jerk ass.
        • 5 Years Ago
        I went to college, graduated in four years and have a mediocre job. The most sucessful person I know never went to college and owns a lucrative business at the age of 26. Don't get me wrong, college is great, but it's not always required.
        • 5 Years Ago
        "..., who you think keep this country afloat doing back breaking labor so the average and college graduated joes can live a civilized life?"

        Illegal Mexicans ??
        • 5 Years Ago
        You sir are one Ignorant Idiot, who you think keep this country afloat doing back breaking labor so the average and college graduated joes can live a civilized life?

        Farmers, Garbage men,the people who have to slaughter animals so that all you see are the nice little packages at the local market and various other industries that a lot of people called undignified or nasty. Guess what someone has to do it, if not then we as a whole would not be living the life we live now period..

        • 5 Years Ago
        I take it you're currently enrolled in your community college and think you have everything figured out? The simple fact is college isn't for everyone for different reasons and our economy needs labor at all levels to remain competitive. This loss of jobs is also a loss of tax revenue and a potential increased drain on our unemployment and welfare system. I don't like paying for other people to live and a great way to prevent that from happening is to help ensure people at all education and skill levels have continued employment.
        • 5 Years Ago
        Is this a serious comment? I really hope, for your own sake, that you're kidding.
        • 5 Years Ago
        "I make $60k a year without going to college"

        Not for long...
        • 5 Years Ago
        great so we all go to college and still we all end up with no jobs, great mentality. Heck or we all go to college only to work at the same plant for less money, even better. Could you toss in a usless college loan too please. Ken has a great response. A diverse workforce is needed to stay competitive.
        • 5 Years Ago
        Maybe I'm reading it wrong, but I took the original comment as sarcasm.
        • 5 Years Ago
        Dude that was just a douchebag statement
      • 5 Years Ago
      The US Government has committed $12 billion to rescue Chrysler. That's $311,688.31 per job.

      Given the fact that most of Chrysler's core competencies were decimated by Daimler and its still not clear that Fiat will be the panacea that everyone thinks it will be, I think that Chrysler should have been liquidated. (It might still be -- my prediction)

      I think we should have used part of that $12 billion to retrain and relocate these workers instead of throwing it down a money pit.

      • 5 Years Ago
      Whatever happens a lot of people will lose their jobs.
      • 5 Years Ago
      Most of these jobs are already lost. The government is artificially propping them up.

      Chrysler doesn't have the customer base to support all of it's plants and all of it's employees, it simply doesn't exist and no amount of wasting our tax money on this company is going to change that. Neither is this magic merger that we're all paying for.

      • 5 Years Ago
      What about these stupid bosses with MBAs from Harvard, who have never opened the hoods of their cars, but tried to manage huge auto companies?
      • 5 Years Ago
      I would suggest going into full liquidation bankruptcy at this point. With 55% of Chrysler going to the UAW it will take about 1-3 years for them to return right back to the bankruptcy table...And the HOLY merger with Fiat isnt going to be a save all solution that it is made out to be....Fiat should stay away from this deal
    • Load More Comments