IRS Uh Oh: Chrysler's Press reportedly owes government nearly $1M in back taxes and more to credit union
According to reports from the Detroit Free Press and Detroit News, Chrysler Group LLC's Deputy Chief Executive and former Toyota exec Jim Press is in the hole to the tune of $1.4 million to both the feds and a credit union.
Digging through Press' financial records, the two Detroit papers discovered the exec currently owes the IRS nearly $1,000,000 and Western Federal Credit Union over $600k, the latter of which Press defaulted on in November of 2008, blaming his Auburn Hills employer's precarious financial situation and pleading for more time to pay off the loans. Press has since sold his New York City town house for nearly $15 million, is attempting to sell his $3.15 million property in Birmingham and owes another $470,000 on a condo in the New Orleans' French Quarter. Check out the two reports for all the details here and here.
[Source: Freep, Detroit News | Image Source: Stan Honda/AFP/Getty]
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Reader Comments (Page 1 of 2)
jerjozwik 5:42PM (9/18/2009)
good luck fiat!
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Sal Collaziano 5:58PM (9/18/2009)
Eh.. Why do we need to know about this?
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Kumar 6:10PM (9/18/2009)
Could it hurt that badly to remind people that he's out by the end of the year, probably because Chrysler know about this? dots, they're fun to connect.
Funny tidbits from a WSJ article about this:
In a letter last November to the Manhattan Beach, Calif.-based credit union, Mr. Press said he was unable to make two $203,000 payments he owed at the time because Chrysler had suspended bonuses and he had been planning to use the money from his bonus for the payments.
"You don't have to worry about my ability to pay, it's just a cash flow issue at this time," Mr. Press wrote in the Nov. 11, 2008, letter filed with the court. "My employment is not in jeopardy, and I still have monthly income to service the note."
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Tim 6:13PM (9/18/2009)
This is Toyota's finest, seriously?
Why would you ever rely on a bonus to service debt? That's a horrible idea, especially when you're working for a company that is hardly vital. And, honestly, if you're making that much money you shouldn't be going into debt anyway; you certainly wouldn't need to.
Tim 6:09PM (9/18/2009)
Yeah, I don't really see how this is relevant.
This does show how people that make a lot of money aren't necessarily good at handling it though.
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Dustin 6:14PM (9/18/2009)
After selling a house for $15 million, I doubt his "financial problems" will be problems for long.
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Jim 6:37PM (9/18/2009)
depends on how much he owes on it.
the4thheat 7:22PM (9/18/2009)
He might have sold it for $15 million but as you can tell this guy bought most of his stuff with loans. It's not like he paid $0 for his apartment and owns it free and clear...he probably has a huge mortgage out on it.
Either way it was his own decision to go stab Toyota in the back. Let his own ego go to his head that somehow he had helped Toyota succeed when in reality most of the stuff he pushed for is hurting Toyota more than anything. Toyota wouldn't have a giant Tundra plant to try and keep running if it weren't for this guy.
So they didn't want to keep promoting him and he got all pissy and went to Chrysler. But I think it's fairly to say based on this guy's financial management skills that he's probably not the greatest resource manager.
Venom 6:18PM (9/18/2009)
How do these guys get into financial problems?
I don't make near the money they do and my cars and my properties are paid off and I have no credit cards.
They make tens of millions of dollars or more, what is their problem?
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Tim 6:21PM (9/18/2009)
They do the exact same things people who make less money do, just on a much bigger scale.
He put less than 5% down for that $15 million townhouse. I don't think there's much excuse for this kind of behavior regardless of income, but it's a particularly idiotic thing with an exceptionally high income like Press had.
paul34 6:32PM (9/18/2009)
Yup. Someone who lives month to month on $5,000/month of income does so because they have $4,900 of expenditures. Such poor financial planning can also translate with higher income levels. Someone who makes $1m/month can easily go in the hole if they're spending $999,500 a month just to maintain their lifestyle.
Seems people always want to believe and act as if they are richer than they really are - even people who actually are "rich" when looked at by the majority of people.
The really smart people stay rich, easily, and without debt. I just think it's absolutely ludicrous to make millions a year yet still choose to live with debt. I guess it's just me, but if I were in the position of an exec, I'd never stop trying to improve myself and my abilities (and thus, my paycheck), but I'd be just happy in "just" a $2m house (more likely under $500k), and a "humble" $100k (more likely $60kish for a 09 CTS-V) car. The rest I'd save up. What more do ya need, eh? Ultimately there has to be a point fo diminishing returns. There's not much more in a $15m house than a $5m house unless you entertain a LOT of people on a regular basis. In which case, you're probably a rap star.
Level 6:19PM (9/18/2009)
awww poor guy ::rolls eyes::
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Jared 5:26PM (9/20/2009)
It sure is hard to feel sorry for him.
Aznauto 7:20PM (9/18/2009)
I will give 5 years before Chrysler goes under completly, only way they can survive is replace their entire lineup and close down all facilities including their HQ in detroit. They can then import cars from Fiat and chinese autos (i.e SAIC, FAW or Dongfeng). Similar to what Penske is doing with Saturn.
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Jim 8:51PM (9/18/2009)
you're either spamming, or stupid. I can't see how anyone in their right mind would jump in with a Chinese automaker, especially after the way Chery screwed Malcolm Bricklin.
BigWill 7:37PM (9/18/2009)
This guy quit being Toyota's US Papa-san to work for a car company run by Bob Nardelli.
If that doesn't scream bad judgment, I don't know what does.
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F50 7:38PM (9/18/2009)
Chrysler's lineup does have some decent products(Or can be made decent/good) with a bit of work the 300C/Charger/Challenger can be very competitive, If they buy the Kappa from the old GM they can get a nice Crossfire successor and Demon(and possibly a small sedan) with the smaller FWD cars to be based on Fiat architecture's, of course they will have to drastically improve their interior's, MPG rating and reliability.
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twistedfusion 8:03PM (9/18/2009)
without reading the headline, I thought that was George Bush.
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BoxerFanatic 1:07AM (9/19/2009)
Actually, I did too, for a second... the whole scrunched-neck thing...
kinda funny
Tool 8:49PM (9/18/2009)
Karma is a bitch.
Since Jim is a Buddhist, he should know that by now. Cause and effect, my friend . . . you reap what you sow.
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