The Fiat Group today purchased the remaining Chrysler LLC shares held by the U.S. and Canadian governments. The Italian company acquired a 1.5% fully diluted stake in Chrysler Group LLC from Canada for US$125 million, and a 6% stake from the United States Department of the Treasury for a price of US$ 500 million.
After acquiring the shares in the two separate deals, the Fiat Group now controls a 53.5% fully diluted equity interest in Chrysler LLC.
Upon the completion of the deal, U.S. Assistant Secretary for Financial Stability Tim Massad released this statement:
“With today's closing, the US government has exited its investment in Chrysler at least six years earlier than expected. This is a major accomplishment and further evidence of the success of the Administration’s actions to assist the US auto industry, which helped save a million jobs during the worst economic crisis since the Great Depression.”
The U.S. Treasury noted that it committed a total of $12.5 billion to the Old Chrysler and Chrysler Group under TARP’s Automotive Industry Financing Program (AIFP), and up until now, has received back a little over $11.2 billion through principal repayments, interest, and cancelled commitments. This means, U.S. taxpayers lost around $1.3 billion.
“[The] Treasury is unlikely to fully recover the difference of $1.3 billion owed by Old Chrysler,” said a statement from the U.S. Treasury. “Treasury has the right to recover proceeds from the disposition of the liquidation trust associated with the bankruptcy of Old Chrysler but does not expect a material recovery from those assets.”
18 Comments:
Well this is a shame that company like Chrysler has been bought by fiat.It could be Vw or Toyota,but fiat?Seriously?Now we have to open the doors to fiat with crapy cars like the punto,500...
Does this close include a tub of Vaseline? US Taxpayers (those who are forced to actually pay taxes) = perpetual ankle grabbers, including their children, and their children’s children for generations to come. There is no way in hell I'll ever purchase a Chrysler/Fiat product.
To the crapy cars like punto etc, fiat has come up with the most successful and famous racing history of any other brand, ferrari with f1 and fiat and lancia with world rally. Crappy companies or cars don't get far on these fields, Toyota "famous" Toyota retired from f1 because of lousy results, Honda same story, with a little more success, but nothing compared to Ferrari.
And to the second "anon" cometary, it was ether that or loose thousands of jobs, and worsen the economy, and if you are not planning on buying a Chrysler/Fiat or Chevy or Ford product, be happy buying hyundai or kia and giving your dollars to foreign countries, with that way of thought China is definately going the be the 1st world power in the next 3 years.
Fiat is planning not only on keeping the brand but to bring their headquarter too USA.
So support it.
"And to the second "anon" cometary, it was ether that or loose thousands of jobs, and worsen the economy, and if you are not planning on buying a Chrysler/Fiat or Chevy or Ford product, be happy buying hyundai or kia and giving your dollars to foreign countries, with that way of thought China is definately going the be the 1st world power in the next 3 years."
Super tired of the "guilt trip" bullshit. Capitalism does not work the way that Chrysler was handled or for that matter, GM. Had the chips fell where they should have, then out of the damage something different would have evolved, and hard lessons learned to avoid repeating. Bad companies should not be rewarded for their failures, instead they should have been punished and allowed to fail. We are now stuck with third-rate corporations producing third-rate products—all on the taxpayers' dollar.
China has placed a significant amount of emphasis, as has South Korea, on math and science education—unlike the US. China bought us because we allowed them to in the ranks of our government and our large corporations.
Good news, now just build something that I want! How about a SRT V6 AWD Charger, Wrangler Rubicon with a Diesel and one of those fancy CJ8 kits from the factory.
When you drive an italian car (did you ever?) you understend why peaple who are in the matter LOVE IT.
But a regular driver may not understend. Ever. Regular drivers don´t know how to drive, they just use the car, so they don't have any parameter.
I drove many Italian cars. And you don't know what you are talking about. not every Italian cars Ferrari dude.
Unbelievable 5 years ago Fiat was going in bankruptcy, now 5 years later they bought crappy Chrysler. And Why they are not paying back $1.3Billion. How about I don't pay my taxes and my home mortgage Mr president.
I know what i'm talking about because through the years I drove (and had) several cars from all over the world, and I know the diference between them (and all of them have ups and downs).
And i'm not talking about italian cars as Ferrari or Maserati, sir.
I'm talking about the italian automobile school: fast, direct and sharp steering wheel, fine suspension tune, sensitive clutch, accurate gear ratios, and...an engine sound that is music to petrolhead ears.
And this you can find in an affordable Lancia, an Alfa Romeo, a Fiat Barchetta or Coupe, and even in a...Punto.
You're going to get butt hurt about $1.3 billion? Meanwhile, most of the top companies in the US pay ZERO in taxes due to loopholes. And companies and sectors that do not in any way need them are getting billions and billions in subsidies each year.
But, yes, THIS is a travesty. Think for a moment what the alternative would have been. $1.3B is a small price to pay to save a huge company in one of the hardest hit sectors in the country.
Stop watching Fox News and get some perspective.
LOL are you kidding me?Have you seen the electrical problems of the 500 and their broken turbos in the abarth??The electrical problems and inyectors in the punto's?My friend in other countries they use GM engines for thir cars,i'm not saying they don't know how to make an engine (well actually they don't) but at least put something from your own company,so i really don't want to know what Fiat italy is.Have you ever heard Fix It Again Tony?Well actually they didn't make something better.
I haved owned an Alfa romeo 155 2.0 TS,probably the best car i have ever owned i'd made it almost 400.000 km (245.500mi arround) so yes i know what an italian car is,i also know that it shared the chasis with a fiat but it's felled like a normal car nothing from other just a normal car and the engine was excellent but only that.There are huge differences betwen fiat and alfa,one of those diffferences are QUALITY,they even were fiat engines,they were pure alfa romeo.
Now they don't make those engines anymore,now they use the fuck**g multiair.So you are buying an alfa with a fiat 500 engine?No Sr,thanks,i better buy a Vw or A Toyota instead of that
I don't know much about Fiat, but I know Chrysler I worked for them long after their heyday had come and gone, and after Lee Iacocca saved the company from collapse. I came on board in the trenches working on their cars every day in the 90s after they had acquired Jeep when AMC folded. At the dealership where I worked we serviced and sold Chrysler, Dodge, Jeep, Eagle, Mazda and Subaru's. So I had the opportunity to compare what Chrysler produced to what a couple of Japanese manufacturers produce, and I'll tell you there was no comparison. Mazdas and Subaru's would go out the door and for the most part we'd never see them again except for oil changes and other regular maintenance. That was not the case with any of the Chrysler Dodge or Jeep products at the time.
I grew up working on cars, and was very familiar with Chrysler's engines from the 60s like 318. There was a bulletproof engine if there ever was one. The V8 engines that Chrysler replaced them with in the 80s and 90s were a bad joke in comparison. I've never seen a car company go so far backwards when it comes to reliability. I had Jeep Grande Cherokees equipped with the top-of-the-line V8 at the time throw rod bearings on the first test drive, and it happened more than once. Their best vehicles were the minivans, yet their top-of-the-line engines would regularly fail as well. The four cylinders and the six cylinders, which were designed left over from the 80s, or in the case of Jeep left over from AMC, were far and away better than the new engine's Chrysler was designing, seemed to me like they were designed to fail. Same goes for the way the cars interior's were put together on the LeBaron, they came up with a way to put parts that would fail in the most inaccessible areas, requiring 12 to 18 hours of work to get to, hard to believe that was by accident.
After a few years of watching how things operated at the dealership and the edicts which would come down from corporate, I came to the conclusion that the company had to be intentionally designing in failure, in order to make money off the back end with the warranty set up which was nothing more than a hustle, a two bit scam where every one got screwed from the customers who bought the cars to the mechanics who worked on them, so corporate execs could become billionaires, ultimately at US taxpayer's expense.
In my view Chrysler Corporation represented and still represents everything that was wrong with the US car business for decades, everybody was in on the hustle to some extent, but Chrysler was the worst of the worst. Chrysler is a prime example of what happens when companies are released from any kind of regulation or oversight and run by people who are the same moral level as thieves and criminals. They represented the rot and corruption that has infected the heart of the US business community, and the reason why this country is in such desperate trouble right now. We did it to ourselves.
Even now Chrysler and Dodge they are rated the worst cars on the road by Consumer Reports, the only thing worse are the Jeeps they make. I don't know what Fiat will do with the line, but I know one thing, they can't make them any worse or any less reliable. When you hit rock bottom, the only place to go is up.
My hard-earned money, gone! I didn't want to help out the American auto industry. Hell, I wanted them to crash and burn under the weight of their own perceived success. Unfortunately, "big brother" had to step in and save the day. Whoop-dee-fucking-doo. Now, my tax dollars are going to bullshit that I don't even care about. And "old" Chrysler gets away with not paying $1.3 billion? What the fuck, man?! Shit, if the government is going to forcibly take money from me, at least use it wisely. Now the fucking nation is broke because they wanted to help out everyone. Who the fuck told them to do that. Fuck this nation! I'm moving to Canada!
1.3 billion is A LOT OF MONEY..the publics money. Don't know if you realized it yet but we are over 16 trillion dollars in debt due to stupid buy outs like this. Math seems to be lost to many!
For the fox news viewers who have difficulty with the scale of large numbers and think that 1.3B to 2 broken automakers is more of a crime than 16T given to a bunch of corupt banks that plunged the entire world into a resession, an illustration of some numbers.
This is what 16 trillion looks like written out.
16,000,000,000,000
And this is what 1.3 billions looks like written out.
1,300,000,000
To find what percent 1.3 billion is of 16 trillion, simply divide 1,300,000,000 by 16,000,000,000,000
It works out to 0.00008125 or 0.008125% or considerably less than 1%.
If you thing 1.3B is a lot of public money, then I think you're missing the much, much, bigger picture.
As always, if there are any errors with my math, call me on it immedately.
The Cash leak in the US continues unabated. The 1.3 Billion, almost matches this debacle....>
NSA employee, Drake revealed to the press that the National Security Agency
(NSA) spent $1.2 billion on a contract for a data collection program
called Trailblazer when the work could have been done in-house for $3 million. The NSA’s response? Drake’s home was raided at gunpoint and the agency forced him out of his job.
Really!? You seem to be challenged by the facts and the math, as are a lot of comments on this posting. Oh! Well! Keep drinking the cool aid.
Can anyone tell me how much cash the UAW got for the stake in Chrysler this "preident" GAVE them? Or do they still own the stock?
Post a Comment