Chrysler is filing Chapter 11.

[cman9012 10+ year member]

Link

DETROIT (Reuters) – The Treasury is preparing a Chapter 11 bankruptcy filing for Chrysler LLC that could come as soon as next week, The New York Times reported on Thursday, citing people with direct knowledge of the matter.
The Treasury has an agreement in principle with the United Auto Workers union to protect pensions and retiree health care benefits as a condition of the bankruptcy filing, the paper said.

Italy's Fiat would finalize its alliance with Chrysler while the U.S. automaker is under bankruptcy protection, the paper reported.

Chrysler has until April 30 to complete its partnership with Fiat and win concessions from its first-lien lenders and the UAW, or face a cut-off of government funding and a potential bankruptcy.

The Times said U.S. and Canadian governments were prepared to provide the financing that Chrysler needed to operate while under bankruptcy protection.

Chrysler was not immediately available for comment.

(Reporting by Soyoung Kim, editing by Leslie Gevirtz)

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[bose301s 5,000+ posts]

From what I understand it isn't 100% for sure, but is a probability.

 

[cman9012 10+ year member]

Yes unless the deal goes through with Fiat this is going to happen.

 

[mcsoul 10+ year member]

Excellent, dump the union contracts, someone picks up the remnants at a sane market driven price, capitalism goes on.

 

[dalucifer 10+ year member]

the deal with fiat is supposed to go through during the chapter 11 filing is what i read.

 

[duece212 5,000+ posts]

bummer, but needs to happen if they want to unload debt and get the UAW workers inline.

 

[dalucifer 10+ year member]

bummer, but needs to happen if they want to unload debt and get the UAW workers inline.

unfortunately but ya... There pay needs to be cut by about 50%(including benefits) to really be competitive

 

[duece212 5,000+ posts]

unfortunately but ya... There pay needs to be cut by about 50%(including benefits) to really be competitive

Hopefully Chrysler doesn't come out the other side of bankruptcy and then go back to BAU with the UAW.....and get back to the same shit

 

[dalucifer 10+ year member]

Hopefully Chrysler doesn't come out the other side of bankruptcy and then go back to BAU with the UAW.....and get back to the same shit

one can hope, but it seems like the UAW wont budge to much. I dont see how some dude that puts a tire on a car can make 120k a year (including benefits).

 

[nickolas_j_t 10+ year member]

this is horsechit. this is america's backbone...

 

[Proximity 10+ year member]

Chrysler is shit anyway (these are the douchebags who came out with the PT Cruiser), call me when Ford or GM go down. I'll give a shit then.