Who are Chrysler's top ten creditors? The answer may surprise you
Chrysler's top ten creditors are owed about $400 million, and the top two creditors account for nearly $130 million of that. The company first in line for payment is Ohio Module, which is a subsidiary of Hyundai Mobis, which is in turn a publicly traded subsidiary of Hyundai. Ohio Module makes chassis for the Jeep Wrangler and Chrysler has run up a $70 million tab with the firm.
The next creditor is BBDO, Chrysler's ad agency, who beat out companies like Johnson Controls, Cummins and Visteon when it comes to money owed. BBDO is looking for $58 million dollars from the Pentastar, yet it is suspected that a good deal of those funds aren't actually owed to BBDO but to the media outlets from which the agency bought ad space, like local television stations. If so, that would be a huge hit for smaller affiliate outlets to take.
Although not on the top ten, the most surprising creditor recently added to the list is Bob Lutz. The amount of Maximum Bob's claim isn't known, but he has representation before the court to petitition for some sort of remuneration. Based on the line that's still forming, though, we have serious questions about his chances of recovery...
[Source: The Detroit Bureau]
Reader Comments (Page 1 of 2)
Scorch 5:39PM (5/13/2009)
The U.S. government and the UAW would just like to thank the
aformetioned entities for their generous donations to Chrysler Motors.
But seriously, you're never getting your money back.
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hypermiler 6:00PM (5/13/2009)
The parts suppliers, including above mentioned Jeep chassis manufacturer Hyundai Mobis, would be paid in full by the US government, as the US government guaranteed payment to parts suppliers to prevent them from going bankrupt.
Not that Hyundai would go bankrupt if it didn't get the money.
hypermiler 6:10PM (5/13/2009)
@ Erik
> Ugh, the fact that Jeep has anything to do with Hyundai makes me sick.
http://english.chosun.com/site/data/html_dir/2009/05/13/2009051300463.html
Interesting news. Hyundai Mobis's set to land BMW and VW deals. BMW suspension module(BMW's legendary suspension made by Hyundai?) deal is for Chinese market only, but the VW deal is for VW's US plant in Tennessee manufacturing a new VW flagship sedan bigger than Passat.
Sea Urchin 6:37PM (5/13/2009)
Government gave Chrysler BILLIONS, why couldn't the company use some of that money to call back the bonds they issued. They could have boughtout the creditors.
Scorch 7:20PM (5/13/2009)
@ Hypermiler
Not sure which magazine you were reading but the senior creditors (who have priority in Chapter 11) were basically strongarmed into accepting about half of what the debt was worth, not that it's any business of the President to arbitrate bankruptcies.
elprogramer 1:16AM (5/14/2009)
@Sea Urchin
Because the automotive business is capital intensive. You need a ton of money to make some money.
Erik 5:45PM (5/13/2009)
Ugh, the fact that Jeep has anything to do with Hyundai makes me sick.
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hypermiler 5:55PM (5/13/2009)
Jeep chassis was manufactured by Hyundai Mobis. Chrysler only put the final touch onto Jeeps delivered by Hyundai Mobis.
This was the reason Chrysler offered to unload Jeep to Hyundai last October, thinking that Hyundai would have the most to lose if Chrysler went bankrupt.
cdwrx 6:21PM (5/13/2009)
Every manufacturer is involved with every other manufacturer in some way. It's odd, but I wouldn't say sickening.
Kitko 6:28PM (5/13/2009)
Erik, this is the reality of car making in the 21. century. There's nothing to be sick of.
Chevrolet European line-up (as well as few US cars in the GM family) is based on Korean Daewoos. Note: In Europe, Corvette is sold in Cadillac dealerships, for a good reason....).
Peugeot/Citroen and Toyota share a plant and a car (C1/107/Aygo), BMW used a Toyota diesel in the first generation Mini, Pontiac Vibe and Toyota Matrix are siblings. Ford Europe used Peugeot/Citroen diesels for years. Ford Galaxy and VW Sharan are/used to be siblings, too. And, Renault's Scenic 4x4 used chassis developed by Austrian Puch, which, in turn, is famous for Mercedes G-wagen.
Porsche helped with developing Harley Davidson V-Rod, last generation of Mazda 3 has the same steering wheel as Malibu and about 100 other cars, and don't get me started on transmissions made by Aisin, among other, that 8-speed wonder in Lexuses is Aisin. Lotus is owned by Malaysian Proton and few Skodas go as VWs in China.
Kiiks 7:13PM (5/13/2009)
Not to mention Lotus' engines are sourced from Toyota.
Yaroukh 5:46PM (5/13/2009)
interesting way of fighting imports
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why not the LS2LS7? 5:50PM (5/13/2009)
I have bad news for BBDO (and Lutz). Unsecured creditors generally take it in the shorts during bankruptcy.
A more pertinent question might be who are the equity/secured creditholders in Chrysler?
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zamafir 6:47PM (5/13/2009)
indeed. i'm also curious why lutz is involved, just a couple of good ol' boys asking each other for a helping hand?
LX builder 7:17PM (5/13/2009)
What the heck does Lutz have to do with this? You know he hasen't been involved with Chrysler in like 11yrs.
why not the LS2LS7? 1:14AM (5/14/2009)
Maybe he has a pension from Chrysler?
jjpg2000 6:30PM (5/13/2009)
"petitition" spell check anyone?
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Jim in Tampa 6:36PM (5/13/2009)
Usually I overlook typos like that but that one stuck out like a sore thumb.
JH 6:43PM (5/13/2009)
Yeah, something about that extra tit caught my eye.
John Graham 9:13PM (5/13/2009)
It's as good as REMUNERATION, lol!