Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Feds may want loan money back early after learning of Chrysler/Fiat deal]]>http://www.autoblog.com/2009/01/21/feds-may-want-loan-money-back-early-after-learning-of-chrysler-f/http://www.autoblog.com/2009/01/21/feds-may-want-loan-money-back-early-after-learning-of-chrysler-f/http://www.autoblog.com/2009/01/21/feds-may-want-loan-money-back-early-after-learning-of-chrysler-f/#commentsFiled under: , , ,



The conference room where Chrysler and Fiat worked out Fiat's 35% stake in the Pentastar probably still smells like hors d'oeuvres and bottled water, and already a Congressman is thinking about making Chrysler return its $4 billion dollar bridge loan.

In fact, Chrysler and Fiat aren't even partners yet. All they have done so far is sign "non-binding term sheet to establish a global strategic alliance." They're engaged, but nowhere near married yet, and it is unclear yet what the final partnership - if there is one - is going to look like. Even so, Representative Barney Frank of Massachusetts has said the pact "might well trigger a repayment" depending on Fiat's ultimate interest in the company.

The government, of course, wants to be repaid the money it gave to Chrysler. Having Fiat arrive with a potential life preserver and a plan that makes sense would appear to be good for everyone, including the government's chances of getting its money back. After all, if you believe all the writing on all the walls, Chrysler is doomed if it doesn't get hitched on the quick, which would make that $4 billion just another chapter in history. So announcing that if Fiat and Chrysler do tie up, the union might start off $4 billion poorer doesn't strike us as smart business, nor smart politics, nor sound financial planning with taxpayer money. We can only hope sense will prevail and Chrysler and Fiat will be given the time and resources they need to put a viable long-term plan together.

[Source: Freep]

Feds may want loan money back early after learning of Chrysler/Fiat deal originally appeared on Autoblog on Wed, 21 Jan 2009 14:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>barney frankBarneyFrankchryslerchrysler fiatchrysler fiat alliancechrysler fiat dealchrysler fiat partnerchrysler fiat partnershipchrysler llcChryslerFiatChryslerFiatAllianceChryslerFiatDealChryslerFiatPartnerChryslerFiatPartnershipChryslerLlcfiatgovernmentWed, 21 Jan 2009 14:28:00 EST<![CDATA[Detroit CEOs and UAW chief summoned to Washington]]>http://www.autoblog.com/2008/11/13/detroit-ceos-and-uaw-chief-summoned-to-washington/http://www.autoblog.com/2008/11/13/detroit-ceos-and-uaw-chief-summoned-to-washington/http://www.autoblog.com/2008/11/13/detroit-ceos-and-uaw-chief-summoned-to-washington/#commentsFiled under: , , , , ,

When Congress wants to hand out money, it apparently wants to include everybody. Barney Frank, Chairman of the House Financial Services Committee, is likely to propose a measure that lets automakers tap into the $700 billion vein of rescue dollars that's ostensibly intended for financial institutions, yet is being hungrily eyed by everyone.

CEOs from Ford, General Motors, and Chrysler will make the trek to Washington, DC, as will UAW chief Ron Gettelfinger. All will be pleading their collective case for an estimated $100 billion-plus vitamin pill. Many, not the least of whom is Treasury Secretary Henry Paulson, think that automakers should not be allowed to snag some of the cash that's intended for financial institutions. Things look bleak for all three of the brands, but can Congress be moved to offer up some money and prolong the jobs of so many Americans? Even if the automakers get the $100 billion they're seeking, when nobody's buying, it will merely turn into taxpayers funding an increasing glut of product nobody can afford to buy. Even those consumers with money and good credit are holding back as the economy delves into recession, emotional purchases are way down, and most vehicle purchases are driven by wants versus needs. Things will undoubtedly sort themselves out, but not before more pain for Detroit.

[Source: Automotive News - Sub. Req.]

Detroit CEOs and UAW chief summoned to Washington originally appeared on Autoblog on Thu, 13 Nov 2008 13:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>automaker bailoutAutomakerBailoutautomakersbailoutbarney frankBarneyFrankcongressdetroitdetroit bailoutDetroitBailoutThu, 13 Nov 2008 13:32:00 EST<![CDATA[Paulson: Automaker aid won't come from financial bailout money]]>http://www.autoblog.com/2008/11/12/paulson-automaker-aid-wont-come-from-financial-bailout-money/http://www.autoblog.com/2008/11/12/paulson-automaker-aid-wont-come-from-financial-bailout-money/http://www.autoblog.com/2008/11/12/paulson-automaker-aid-wont-come-from-financial-bailout-money/#commentsFiled under: ,



Some U.S. policymakers believe that the domestic auto industry needs a multi-billion $hot in the arm, but the sticking point seems to be where to find the funds. Rep. Barney Frank (D-Mass.) is calling for a portion of the financial sector's $700 billion TARP buyout to be apportioned to Detroit, but Treasury Secretary Henry Paulson doesn't like the sound of that at all. Instead, Paulson would like to see the automakers get the $25 billion they've already been promised, and suggests that it be made available as soon as possible. Of course, that money was supposed to go towards retooling the industry to make more fuel efficient cars, not necessarily as a cash-infusion to keep the Detroit 2.8 running. In any case, Frank has called for a meeting with the heads of each automaker in Washington next Wednesday to discuss whether a new loan for Detroit should be sectioned off from the TARP fund. This could get interesting.

[Source: Detroit Free Press, Photo by Alex Wong/Getty]

Paulson: Automaker aid won't come from financial bailout money originally appeared on Autoblog on Wed, 12 Nov 2008 17:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutbarney frankBarneyFrankdetroitdetroit 3detroit 3 bailoutdetroit bailoutDetroit3Detroit3BailoutDetroitBailouthank paulsonHankPaulsonhenry paulsonHenryPaulsonpaulsontarptarp fundTarpFundWed, 12 Nov 2008 17:58:00 EST