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[Christmas List 2010: Rattner's book to debut in time for next Christmas]]>http://www.autoblog.com/2009/12/18/christmas-list-2010-rattners-book-to-debut-in-time-for-next-ch/http://www.autoblog.com/2009/12/18/christmas-list-2010-rattners-book-to-debut-in-time-for-next-ch/http://www.autoblog.com/2009/12/18/christmas-list-2010-rattners-book-to-debut-in-time-for-next-ch/#commentsFiled under: , , , ,



Planning for the future is perhaps an alien concept to big business - even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of the quick-rinse bankruptcies Rattner presided over.

A fascinating piece that Rattner wrote for Fortune Magazine back in October gave us a glimpse of how riveting such a seemingly-dry subject can be. The book is on track for a debut in the fall of 2010, and might be even more interesting in a year depending on how Rattner's deals work out. The hardest part is going to be behaving well enough for an entire year so this thing gets stuffed in our stocking.

[Source: The Detroit News | Image: Neilson Barnard/Getty]

Christmas List 2010: Rattner's book to debut in time for next Christmas originally appeared on Autoblog on Fri, 18 Dec 2009 10:03:00 EST. Please see our terms for use of feeds.

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When Former President George W. Bush spoke to the Montreal Board of Trade recently, he made a public appeal to the Obama administration to "get out of the private sector," adding "I hope our government gets out of the autos and the financials in which they have a stake." His premise is that it takes private companies to turn an economy around, not government-run ones.

As we have found out during America's recent economic troubles, a lot of people find it easy to say a lot of things when they're not on the hook. And the former Commander-in-Chief isn't the first (nor the only) ex-President to offer such advice; they've all done it - he's only the most recent. But this is coming from the man whose VP sold him out as giving TARP money to prevent General Motors and Chrysler bankruptcies on his watch. Lest we forget, Bush is also the man who said:
"Well, I have obviously made a decision to make sure the economy doesn't collapse. I've abandoned free market principles to save the free market system. I think when people review what's taken place in the last six months, uh, and put it all in one, in one, (sigh), you know, in one package, they're realize how significantly we have moved."
Forget about politics, it isn't even that what Bush has said is wrong, per se - by most accounts, the American government shouldn't be in the car business nor the retail banking business, and the current administration agrees with that, having said repeatedly it wants to get out of both. But they inherited the issue, and now it's up to them to figure out the best way out of it. Hat tip to Avinash!

[Source: Bloomberg | Image: Getty]

Former President Bush asks Obama to exit the car business originally appeared on Autoblog on Mon, 26 Oct 2009 12:58:00 EST. Please see our terms for use of feeds.

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Before there was a Motors Liquidation Co, post-bankruptcy GM's hived-off shelter for useless assets, there was Old Carco LLC. That's the company Chrysler built to house its useless assets, and unsurprisingly, it doesn't have good news for unsecured creditors. Old Carco was left with liabilities of $20.5 billion, but has less than half of that to pay off everyone it owes.

The latest accounting says there is $2.345 billion to pay things off. With a shortfall that drastic, even the U.S. Treasury and the Canadian governments are waiting for their money, with a $3.34 billion loan and $29 million in interest going not being repaid. The Treasury sent Old Carco a notice of default last month, which strikes us as a waste of a stamp and paper.

And since Old Carco isn't allowed to borrow any more money, there is almost no chance that creditors will be made whole. At this point, as the company tries to unload leftover factories and property, it looks like the best anyone's going to get is pennies on the dollar -- or just fractions of that -- and that could be for the folks first in line. Old Carco is dead, long live Chrysler...

[Source: Detroit News | Image Source: Bill Pugliano/Getty]

REPORT: 'Old' Chrysler defaulting on loan obligations originally appeared on Autoblog on Tue, 08 Sep 2009 17:20:00 EST. Please see our terms for use of feeds.

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Now that the crime is over, the verdict issued and the sentencing issued, we can look forward to a few months years of the CSI treatment applied to what really happened at Chrysler. The first exhibit is a New York Times piece with Cerberus co-founder Stephen Feinberg, coming off almost as The Man Would Would Be Iacocca.

The first quote - "I don't know what we could have done differently. From the day we bought it, we worked hard to improve it" -- is the kind of statement that, no matter how true it is, would likely elicit numerous objections. Yet the issue of whether Cerberus should have bought Chrysler or whether it knew what is was doing is only the second most compelling theme of the Times piece.

The real hook is the competing justifications of why Cerberus bought Chrysler. On the one hand, many feel that it was a play to get Chrysler Financial and marry it with GMAC. The other hand, as Feinberg notes more than once, was supposedly holding an American flag - that is, the Cerberus deal was about patriotism and doing what's right for the country. That's a narrative we had never even considered - private equity and The Good of America don't often dine together in our world - but have a read and decide for yourself.

[Source: New York Times | Photo by Bill Pugliano/Getty]

The tale that wagged the dog: Cerberus' Stephen Feinberg speaks originally appeared on Autoblog on Fri, 14 Aug 2009 19:58:00 EST. Please see our terms for use of feeds.

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Click above for the Autoblog Podcast in iTunes, RSS or listen now!


The dynamic duo of Chris and Sam carry off Episode #133 of the Autoblog Podcast without a hitch. Though down a man, the pair didn't cheap out on topics or duration, it's the same podcast goodness. It kicks off with Hyundai's impressive showing in the recently released Initial Quality Survey results. From there, they hit Chrysler's RWD/FWD dilemma with its Sebring/Avenger replacement, the rumor that Mustangs could have had IRS for $100 per car, and reports of an Ecotec engine for the Buick LaCrosse. Keeping it on the Buick tip, spyshots of a Tri-Shield variant of the new 2010 Astra get mentioned. The nullification of all pre-bankruptcy liability claims against GM and Chrysler is next before talk settles briefly on Hyundai's 2010-on lineup and then turns to your questions. It almost seems like the Chris and Sam show is a juggernaut without that other guy. Thanks for listening, and please, keep your questions and comments rolling in to Podcast at Autoblog dot com.

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Continue reading Autoblog Podcast #133

Autoblog Podcast #133 originally appeared on Autoblog on Wed, 24 Jun 2009 13:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>autoblog podcastautoblog podcast 133AutoblogPodcastAutoblogPodcast133buick astrabuick ecotecbuick lacrosseBuickAstraBuickEcotecBuickLacrossechryslerchrysler 200cchrysler bankruptchrysler bankruptcychrysler bankruptcy approvedchrysler liabilitychrysler sebringChrysler200cChryslerBankruptChryslerBankruptcyChryslerBankruptcyApprovedChryslerLiabilityChryslerSebringfeaturedgm bankruptcygm liabilityGmBankruptcyGmLiabilityhyundaihyundai 2011hyundai iqshyundai lineuphyundai qualityhyundai sonataHyundai2011HyundaiIqsHyundaiLineupHyundaiQualityHyundaiSonatapodcastpodcast 133Podcast133podcastsWed, 24 Jun 2009 13:29:00 ESTAutoblog Podcast #133Autoblog64:00autoblog, autoblog podcast, podcast, autoblog podcast 133<![CDATA[REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development]]>http://www.autoblog.com/2009/06/23/report-gm-persuing-chrysler-for-repayment-of-two-mode-hybrid-de/http://www.autoblog.com/2009/06/23/report-gm-persuing-chrysler-for-repayment-of-two-mode-hybrid-de/http://www.autoblog.com/2009/06/23/report-gm-persuing-chrysler-for-repayment-of-two-mode-hybrid-de/#commentsFiled under: , , , , , ,



Our friends at PickupTrucks.com are reporting that General Motors has filed documents in court in an attempt to get "New" Chrysler to honor its full pre-bankruptcy debt of $531,275 (of which Chrysler has so far only agreed to pay back about a third) for work on the sophisticated Two-Mode hybrid powertrain that was jointly developed by the two American automakers along with Daimler and BMW.

Chrysler and General Motors have both filed for Chapter 11 protection from creditors, which allows the automakers to renegotiate - or in many cases completely cancel - past contracts that are no longer desirable. It seems that Chrysler's contract with The General, which is supplying the hybrid transmissions to Chrysler, has yet to be picked up by New Chrysler.

This case is a bit more intriguing than most - such as Chrysler's canceled contract with Cummins for light-duty diesel engines for the Ram pickup - as it pits General Motors across the courtroom and on the other side of bankruptcy negotiations. We suspect that New Chrysler may be keen to pick up its old tab since the automaker is still planning to use the Two-Mode Hybrid technology for future vehicles, starting with the 2010 Dodge Ram, though possibly with more favorable terms.

[Source: PickupTrucks.com]

REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development originally appeared on Autoblog on Tue, 23 Jun 2009 19:28:00 EST. Please see our terms for use of feeds.

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Lee Iacocca loves him some Chrysler. He cared enough about the Pentastar to rescue the automaker from bankruptcy back in 1979, and now in retirement as the honorary chairman of the National Chrysler Retirement Association, he's offering his support for his former employer post-bankruptcy. Iacocca, along with 19,000 Chrysler retirees, took out a full page ad in the Detroit News offering any means of support necessary to help the new Chrysler succeed. The ad offered help in "any way capacity you might require," and added, "just put us to work." It also showed the retirees' approval for the Fiat alliance; something that didn't come as easily when Daimler became Chrysler's overlord.

The heart-felt advert may have had an ulterior agenda, though. The open letter said that it hoped there were "some exceptions that we hope will be reevaluated," which is likely a reference to the axing of executive retirement packages. For many current and former Chrysler employees, Iacocca is an icon for what Chrysler can do if it gets its priorities straight. We're hoping Fiat takes him up on his offer, because if you can find a better executive willing to work for free, take him.

[Source: The Detroit News | Image: Paul Hawthorne/Getty]

REPORT: Iacocca leads retiree volunteer army offering free help to Chrysler originally appeared on Autoblog on Fri, 12 Jun 2009 13:29:00 EST. Please see our terms for use of feeds.

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In spite of pleas from the White House and the Justice Department, the Supreme Court yesterday put a hold on Chrysler's sale to Fiat. On one side are Indiana pension funds who want to protect their investment. On the other side are Chrysler and Fiat, who want to protect Chrysler's very existence, and the government which wants to protect the economy and jobs. In between all of that is the law.

Chrysler was given until June 15 to arrange its affairs or Fiat had the right to walk away from the deal, which would mean almost certain liquidation for the Pentastar. A Fiat spokesman, however, has come out today and said "Fiat won't walk away from Chrysler."

No reason was given for Fiat's new commitment, but in addition to the fact that Fiat intimately knows how long it takes to get a stumbling business through necessary hurdles, this is probably the company's best near-term chance to get into the U.S. market with a whole lot of helping hands. For the time being, everyone now waits to see what the Supreme Court will do with the case. Thanks for the tip, Dave!

[Source: Yahoo!]

Fiat to Chrysler: "We won't walk away" originally appeared on Autoblog on Tue, 09 Jun 2009 13:39:00 EST. Please see our terms for use of feeds.

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After the suggestion of Congressional hearings on the matter, Chrysler's Jim Press assured Senator Kay Bailey Hutchison (R-TX) that Chrysler dealers with leftover inventory after June 9 would "receive a fair and equitable value." It appears that Chrysler is making good on that promise.

The company's head of sales, Steven Landry, outlined the measures being taken to relieve shuttered dealers of their wares and remunerate them for it. Of the 42,000 cars held by the 780 dealers whose franchises were nixed, 26,000 of them have been sold. The rest, save for 220 cars, have been assigned to be moved to dealers that are still in business. Those last 220 cars are in the possession of dealers who haven't yet agreed to Chrysler's plan, but the cars already have new dealer homes waiting if and when things are agreed.

As for payment, after the cars arrive at their redistribution point, the new dealer's finance company will pay off the old dealer's finance company for an inventory acquired, save for $350 in destination fees. All else, according to Landry, including holdback and advertising funds, will be repaid. There is at least a little good news to start the week...

[Source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]

Dealer Bailout: Chrysler to redistribute all new inventory originally appeared on Autoblog on Mon, 08 Jun 2009 17:27:00 EST. Please see our terms for use of feeds.

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The sale of Chrysler's assets to Fiat have been delayed by Supreme Court Justice Ruth Bader Ginsburg after three Indiana state pension funds lost their case in New York and filed papers with the highest court the land. Early reports indicate that this is only a temporary stay, with Ginsburg saying the sale is "stayed pending further order." Chrysler's lawyers have said the stay could cause the deal with Fiat to go under.

[Source: Freep]

BREAKING: Supreme Court stays sale of Chrysler to Fiat originally appeared on Autoblog on Mon, 08 Jun 2009 16:26:00 EST. Please see our terms for use of feeds.

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What automaker has a lower owner satisfaction score in the UK than Chrysler? The one and only company that makes automobiles less tasty to UK consumers is Fiat. Both brands, which are soon to be joined at the arm rest, scored significantly below both the industry average and survey champ Lexus, which enjoyed its ninth year topping the charts. The rest of the top five are Honda, Mercedes-Benz, Skoda, and Toyota.

What owners in the UK have to say about Chrysler and Fiat doesn't necessarily go for the rest of the world; after all, they prefer Rugby and Cricket to our Football and Baseball. It just may be, however, that like those seemingly separate but similar sporting endeavors, the overseas opinion of Chrysler and Fiat as bottom feeders may not be entirely far off from what North American consumers think.

[Source: JD Power | Photo Illustration by Sean Gallup/Getty]

Ruh-Roh, Chrysler: Fiat finishes dead last in new British J.D. Power survey originally appeared on Autoblog on Mon, 08 Jun 2009 10:57:00 EST. Please see our terms for use of feeds.

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As the movie Hoosiers amply demonstrated, Indiana natives don't quit. That's also true for three Indiana state pension funds who have fought Chrysler's bankruptcy all the way to the federal appeals court in New York and, having lost their case there, are filing papers with the Supreme Court today.

The central issue is that the funds feel Chrysler's post-bankruptcy remuneration plans have unfairly cost the funds a great deal of value by putting unsecured debtors such as the UAW ahead of the funds' claims. They are fighting the bankruptcy by alleging that the government's TARP disbursal to Chrysler was unconstitutional and that the subsequent events amount to a covert reorganization, not Chapter 11.

Yet when asked whether a Chrysler liquidation would be better for the pension funds than the Fiat deal, the funds' lawyer replied that he was looking for more remuneration for secured debtors. The filing will go to Justice Ginsburg who will decide whether to accept it at all, to handle it alone or to refer to the full court for hearing. Chrysler has until June 15 to emerge free and clear, else Fiat can walk away. And if that happens, Chrysler might owe Fiat $35 million -- which is just $7 million short of what the three Indiana funds together have invested in the Pentastar. Thanks for the tip, MM!

[Source: Automotive News, sub. req'd]

Chrysler bankruptcy taken to Supreme Court by unhappy shareholders originally appeared on Autoblog on Mon, 08 Jun 2009 08:28:00 EST. Please see our terms for use of feeds.

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On a recent episode of The Chrysler Files, customers who purchased Chrysler vehicles that were later officially certified as lemons were being reimbursed by the company with checks... that bounced. The snafu stemmed from the fact that while said claims were made before Chrysler's bankruptcy, after the automaker's Chapter 11 filing, the judge had to clear the funds to be paid from Chrysler's account. Since the judge hadn't cleared the funds, the checks were worth precisely zero dollars.

Those owners will be happy to know that the judge has finally approved Fiat and Chyrsler honoring "all warranty and lemon law obligations" for cars purchased up to five years before April 30. With the ruling, those affected will also be eligible for additional costs and attorney's fees. Of course, that news still doesn't detail when you stranded motorists can expect a check to arrive -- or when they can cash the ones they already have -- but help is on the way.

[Source: Automotive News, sub req'd]

FOLLOWUP: Chrysler, Fiat reportedly agree to honor lemon law claims originally appeared on Autoblog on Fri, 05 Jun 2009 17:58:00 EST. Please see our terms for use of feeds.

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Late Sunday night, U.S. bankruptcy Judge Arthur Gonzalez approved the sale of Chrysler's remaining good assets to a group that includes the UAW VEBA health care trust, Fiat, and the U.S. and Canadian governments. The union will get a 68% stake, Fiat gets 20% and the governments split the rest. Gonzalez over-ruled virtually all objections to the deal on the grounds that the best chance of preserving any value in the assets was to move ahead with the sale. The only other viable alternative was liquidation, which would likely only bring a small fraction of the potential value in keeping the company alive.

Gonzalez cited the public interest as one of the reasons to move ahead with the sale. Because the billions of dollars in loans from the two governments, keeping the company alive it was decided that this course of action was the best opportunity for some repayment. Senior lenders will receive $2 billion, or about .29 cents on the dollar of the debt currently owed by Chrysler. Some 90 percent of the company's senior lenders were reportedly in support of the deal.

The "new" Chrysler will henceforth be known as Chrysler Group LLC.

[Source: Reuters]

Officially, Official: Bankruptcy judge approves sale of Chrysler assets originally appeared on Autoblog on Mon, 01 Jun 2009 08:55:00 EST. Please see our terms for use of feeds.

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The situations with GM and Chrysler are beginning to look like what happens after a fumble in an NFL game: a dozen men pile on top of each other all trying to get the ball. The difference in the case of GM and Chrysler is there are far more than two teams struggling for the prize. The latest to hop on and shove a hand in is the Senate Commerce Committee, which wants the CEOs to testify "early next month" regarding the planned dealership closings.

Chrysler's sent 789 dealers eviction notices, GM is out to dispatch 1,124 dealers in the US and about 245 in Canada. The GM dealers won't have their franchises renewed as of October 2010, and are said to be staying in operation until they sell the last of their inventory. Chrysler dealers are expected to board up the windows by June 9, although Jim Press recently gave assurances that there will still be help given to those dealers after that date. The Commerce Committee isn't moved by either proposal, citing what it calls "the short and insufficient transition period given to dealerships for franchise terminations."

The hearings would be chaired by Senators John Rockefeller and Kay Bailey Hutchison, and will address what happens to dealer inventory and jobs and consumer needs like warranties and servicing. Hutchison was working on legislation to force automakers to give dealers 60 days notice before closing their franchises (which GM has done) or else go without government help. That legislation was put on hold after Press' letter, but now Nardelli and Henderson will need to go explain things to the principal in person.

For GM it's just one more thing to lump into the impending bankruptcy in-box. For Chrysler, every additional delay in sorting out its business situation only gives Fiat more of those pre-wedding jitters.

[Source: Automotive News - Sub. Req.]

GM and Chrysler CEOs called to D.C. to explain dealer closings originally appeared on Autoblog on Tue, 26 May 2009 08:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcychryslerchrysler bankruptcyChryslerBankruptcydealersdealershipdealershipsfinancialsgeneral motorsGeneralMotorsgmgm bankruptcyGmBankruptcygovernmentkay bailey hutchinsonKayBaileyHutchinsonsenatesenate commerce committeeSenateCommerceCommitteeTue, 26 May 2009 08:29:00 EST<![CDATA[REPORT: Slighted dealers line up to criticize Chrysler tactics]]>http://www.autoblog.com/2009/05/24/report-slighted-dealers-line-up-to-criticize-chrysler-tactics/http://www.autoblog.com/2009/05/24/report-slighted-dealers-line-up-to-criticize-chrysler-tactics/http://www.autoblog.com/2009/05/24/report-slighted-dealers-line-up-to-criticize-chrysler-tactics/#commentsFiled under: ,



A story in the New York Times shines a light on some reasons for the Committee of Chrysler Affected Dealers to challenge the car company's bankruptcy efforts. The element common to all of the dealers profiled is that they did extraordinary things Chrysler asked them to do, such as buy too many cars and combine franchises at their own expense, only to find out they had been chosen for termination after bankruptcy.

Chrysler isn't buying back the inventory that sits on dealer lots -- inventory that, in some cases, Chrysler specifically asked dealers to take too much of in order to help make the company look better for sale. Banks have also dropped many dealers because they no longer have new-car franchises, making it even harder to sell the cars they have.

Until a few days ago, the dealers were told they had only until June 9 to liquidate everything. However, an exchange between Senator Kay Bailey Hutchison (R-TX) and Chrysler President Jim Press has lead to an assurance from Press that dealers will "receive a fair and equitable value for virtually all of their outstanding vehicle and parts inventory," and that former franchisees would "receive a daily report which specifically outlines each unit of inventory and its place in the transition process." The suggestion was also that this would be the case after June 9.

Meanwhile, dealers who spent millions of dollars to show their commitment to Chrysler, only to be unceremoniously cut, will continue to fight their cases in court and on the showroom floor.

[Source: NY Times]

REPORT: Slighted dealers line up to criticize Chrysler tactics originally appeared on Autoblog on Sun, 24 May 2009 13:07:00 EST. Please see our terms for use of feeds.

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Joseph Heller's novel Catch-22 is an assault on bureaucratic circular logic, and when talk turns to Chrysler's bankruptcy, you can almost picture the book's character, Yossarian, shaking his head about the latest developments surrounding warranty claims. Current Chrysler owners might find themselves owning vehicular orphans whether or not the company manages to stick around in some form. Chrysler's bankruptcy deal, where there's an upside and a downside to the Schwartz, could see the new, "Good" Chrysler floating above any responsibility for any Chrysler vehicle sold before the bankruptcy.

Consumers groups, realizing that buyers will have no recourse, have filed an objection that's spurred a quickly organized hearing of the House Judiciary Committee. According to a report by ABC<, the new Chrysler has agreed to cover normal warranty claims, but when some new issue that would normally prompt a recall campaign pops up - or some other kind of defect rears its ugly head - the company would want nothing to do with it. Bad thingamajigy covered, horrible manufacturing or design defect that causes you injury, not covered. No right to sue, either.

It's not like Chrysler vehicles have stellar resale values now, but if this is how things shake out, the machinations to avoid standing behind its product are likely to further devalue anything wearing a Pentastar.

[Source: ABC]

Consumer group objects to Chrysler bankruptcy, says customers could be stranded without warranty originally appeared on Autoblog on Thu, 21 May 2009 18:29:00 EST. Please see our terms for use of feeds.

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Found in the "What have you done for me lately?" bin, Chrysler is apparently asking former CEO Lee Iacocca for the keys to his company cars. According to a FOX report, as part of their Chapter 11 bankruptcy filing, Chrysler isn't allowed to provide vehicles to former execs, even if those execs once famously saved the company from bankruptcy. Therefore, poor Lido is being asked to return his minivan and Chrysler 300, or pay fair market value to keep them.

Maybe the government should step in and allow Iacocca to keep the cars in exchange for some help in getting Chrysler out of its most recent financial mess. After all, Lee has some experience in this matter. He used (just) $1.5 billion in government loans back in 1979 to save Chrysler from the brink. He even repaid those loans seven years early in 1983, capping one of the most legendary turnarounds in U.S. business history. That's right, he repaid the loans. What a concept. Where Have All the Leaders Gone, indeed. You can see the letter sent by Chrysler, after the jump.

[Source: FOX Business]

Continue reading Calling All Cars: Chrysler reportedly repo'ing Iacocca's company rides

Calling All Cars: Chrysler reportedly repo'ing Iacocca's company rides originally appeared on Autoblog on Thu, 21 May 2009 15:58:00 EST. Please see our terms for use of feeds.

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Click above to view and explore Chrysler's dealer rejections nationwide and in your town

The consequences of the Obama Administration's hope for New Chrysler to emerge from bankruptcy as quickly as possible will be felt by the 789 dealerships being shut down by the automaker on June 9th. According to a statement filed by Stephen Lerner, an attorney representing the Committee of Chrysler Affected Dealers:
"Chrysler's proposed asset sale and request for immediate termination of the dealer franchises will destroy several hundred independent businesses, ruin the livelihoods of their owners, cause the loss of thousands of jobs and precipitate inevitable personal and business bankruptcies."
There's probably a lot of truth in that statement. As Ford Veep Jim Farley said, "You don't orphan four million customers overnight without some fallout." Still, none of this changes the fact that Chrysler needs to shed a large portion of its network of dealerships to ensure viability moving forward.

Says bankruptcy attorney at Mintz Levin, "The beauty of Chapter 11 is that you can accomplish these things that would be very difficult outside of Chapter 11." Somehow, we'd guess "beauty" isn't the word Chrysler's affected dealers would use, and we're interested to see how it all plays out in court.

[Source: Automotive News - Sub. Req.]

And so it begins: Affected Chrysler dealers prepare suit originally appeared on Autoblog on Wed, 20 May 2009 14:01:00 EST. Please see our terms for use of feeds.

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Click above to view and explore Chrysler's dealer rejections nationwide and in your town

There's no easy to way to put it: Chrysler's bankrupt. The only way for the Auburn Hills-based automaker to emerge from bankruptcy is to make some drastic moves. Fortunately, filing for Chapter 11 allows a company to do drastic things without the same repercussions that a solvent company would normally experience. Chrysler took advantage of this fact yesterday when it announced the rejection of 789 dealers nationwide. That's about 25% of Chrysler's total dealer body, and the culling will leave 2,392 remaining dealerships to carry the load, 80% of which will house all three brands under one roof.

So what does this look like big picture? Thanks to modern technology, a.k.a. Google Maps, we can show you exactly what 789 dealers looks like, and you also can zoom in on your state or area to see exactly which dealers won't be selling Chrysler, Jeep and Dodge vehicles anymore. For its part, Chrysler is downplaying fears of out-of-work salespeople. As the argument goes, many of the dealerships losing their license to sell Pentastar products sell other brands as well, and some also make more money selling used cars than new.

Then there's Toyota. The Japanese automaker is reportedly going around to some of these rejected Chrysler LLC dealers and offering them the opportunity to switch franchises. We expect that some other automakers will jump on this bandwagon and pick up at least a few of the pieces of Chrysler over time, as well. Thanks for the tips, Travis and Steve!

[Source: The New York Times]

Mapping the Carnage: Laying out Chrysler's dealer closings nationwide originally appeared on Autoblog on Fri, 15 May 2009 14:59:00 EST. Please see our terms for use of feeds.

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