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SAN FRANCISCO (Reuters) – Chrysler Group LLC's chief executive apologized on Saturday for describing the high-interest bailout loans extended by the U.S. and Canadian governments in 2009 as "shyster loans."
"Yesterday, in responding to a question about Chrysler's government loans, I used a term in reference to the interest rate being charged on our government loans that has raised concern," CEO Sergio Marchionne said in a statement. "I regret the remark which I consider inappropriate."
Shyster is a derogatory term used to describe an unprincipled lawyer or politician. He used the term at least three times in his remarks during an industry conference on Friday.
In 2010, Chrysler paid $1.23 billion, or about $3.4 million a day, in interest payments on its debt. It is seeking to refinance those loans before a planned initial public offering in the second half of 2011.
In his statement, Marchionne said the company was grateful for the financial assistance from the U.S. and Canadian governments at a time when the company had no other options. The loans were part of a bailout to keep the automaker from collapse.
Chrysler emerged from bankruptcy in June 2009 and is now under the management control of Italy's Fiat SpA, which has a 25 percent stake in the U.S. automaker. Marchionne is also CEO of Fiat.
"As the only parties willing to underwrite the risk associated with Chrysler's recovery plan, the two governments levied interest rates that, although appropriate at the time, are above current market conditions," Marchionne said.
"Because of these changed market conditions as well as the improvements in our performance and outlook made possible through the support of the U.S. and Canadian governments, Chrysler intends to repay these loans in full at the earliest opportunity," he added.
 

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I always find it ironic that there was so much distain for the "bailout loans..." yet they will likely prove to be one of the few things the government does that turns out in the black.
 

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Discussion Starter #3
I always find it ironic that there was so much distain for the "bailout loans..." yet they will likely prove to be one of the few things the government does that turns out in the black.
I'm not sure why Fiat/Chrysler is whining. These were intended to be short term loans & the alternative was to close their doors. The reason they haven't been able to pay them back is of their own making. GM is well on their way to financial independence. :disgust:
 

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I'm not sure why Fiat/Chrysler is whining. These were intended to be short term loans & the alternative was to close their doors. The reason they haven't been able to pay them back is of their own making. GM is well on their way to financial independence. :disgust:
It wasn't quite so bad. The main issue was banks didn't want to lend them cash before, and they wanted to avoid bankruptcy since they thought nobody would buy cars, so they asked the government. Instead, they ended up bankrupt anyway and with loans from government. If they had gone it alone on Chap 11 probably they would have ended up in the same place.
 

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I'm not sure why Fiat/Chrysler is whining. These were intended to be short term loans & the alternative was to close their doors. The reason they haven't been able to pay them back is of their own making. GM is well on their way to financial independence. :disgust:
I agree. The reason they have these loans is the companies would no longer exist without them. They should be thanking the US Government and taxpayer for giving them money when no one else in on the entire planet would.
 

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Discussion Starter #6
It wasn't quite so bad. The main issue was banks didn't want to lend them cash before, and they wanted to avoid bankruptcy since they thought nobody would buy cars, so they asked the government. Instead, they ended up bankrupt anyway and with loans from government. If they had gone it alone on Chap 11 probably they would have ended up in the same place.
Banks didn't want to lend them money because for years they had been operating with the help of government subsidies, which they had never paid back. I personally would've been livid if my financial institution had been any part of a loan to them. They didn't think no one would buy their cars, they knew no one would buy their cars. Remember that just prior to the bailout, potential buyers held their breath while waiting to see if the GM & Chrysler loans would be approved. Going it alone wasn't an option because they weren't solvent enough to keep operating, so unions would've stopped working without pay & suppliers would've cut them off either by choice or due to their own financial troubles.
 

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I Think CEO Marchionne was Right !!

Well, I tend to have a different point of view; and I think CEO Marchionne was right. The Government[ at least the U.S.[ loans] is a shyster !! Now, wait a minute...comrades...lets all go back to Pre Marchionne and the Gov bailouts.... do any of you remember when Cerberus bought out DCX? Well, for those that don't,then it was Cerberus who said [and/or was it also Bobby Nardelli] that we/Cerberus "has deep pockets" !!! Well, when it was time to help out where was Cerberus' Deep money??? Yeahhhhh, where's all their money ? As for the Feds bailing out with Taxpayers money and the Feds also printing paper money 24/7 again with whose money ?!?!? What are the U.S. /Canadiens citizens rewards ? Please, if the 2 Feds didn't bailout...I don't think they would have gone kerplunkt..my opine though !! Just how did GM pay back so quickly? And did the Fed's Firing of GM CEO Waggoner really make GM all of a sudden a profitable company ? You know has anyone ever found out just what was or is the financial shape of Cerberus ? Well, maybe not..since they are a Private Equity/Company ..so they don't have to divulge anything !!! I don't know if this is also a fair comparison but what about the Fed's Cash$Clunkers deal....that was supposed to spur jobs /or job creation....only so many cars can be sold and if people cannot buy enough cars that are being built then is that good ? And I [and a lot of others ] are bewildered over the so-called clunkers...when really a lot of useable vehicles got all crunched up. I heard alot of people were just taking very usable vehicles so they could get the $4000 or whatever to buy another car...maybe that was good for a few..but did those then owe more money on a new[er] vehicle ???:scratchhead: I also think it's a bit twisted and collusional that Cerberus owns [owned both Gm and Chrysler Financial !! Oh, y-ahhh, y-ahhh, any of you remember about a yr ago or so...seeing Tv/print ads for an ALLY BANK... Yeah, I did..got me wondering who they ??:scratchhead: Yeah, they're the new GM Financial..and it seems :werd: of how Ally can offer the best or some of the best % rates for savings/checking/Cds....Hmmmm, perhaps cause they got/are using Taxpayers/Bailout money... I just believe this is just a tiny amount of what we/I know and how much don't we know ? Anyone know where and what Wolfgang Bernhard is and doing : ,on board of the All Impressive DODGE Tomahawk !!:smokin:!
 

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For me, 2009 was a VERY great year for buying autos.

I got my Challenger SRT8 for EE Plus and 0% financing... I traded in my old broken down 91 Ford Explorer, with a hole in the block, for the "cash for clunkers" program and came away with a new 4 dr Nissan that I only pay $175 a month for. (I shopped the C4C at all the local Chrysler, Dodge, Chevy, and Ford dealership but they either wanted to screw me on a deal or they didn't have any cars that qualified for the program). And, I got to claim the Challenger and the Nissan purchases on my taxes...

I don't know about anybody else, but for me and my family, everything worked better than planned.
 

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Discussion Starter #9 (Edited)
Well, I tend to have a different point of view; and I think CEO Marchionne was right. The Government[ at least the U.S.[ loans] is a shyster !! Now, wait a minute...comrades...lets all go back to Pre Marchionne and the Gov bailouts.... do any of you remember when Cerberus bought out DCX? Well, for those that don't,then it was Cerberus who said [and/or was it also Bobby Nardelli] that we/Cerberus "has deep pockets" !!! Well, when it was time to help out where was Cerberus' Deep money??? Yeahhhhh, where's all their money ?
The Chrysler/Cerberus relation is not & should not be the government's/taxpayers' problem.

As for the Feds bailing out with Taxpayers money and the Feds also printing paper money 24/7 again with whose money ?!?!? What are the U.S. /Canadiens citizens rewards ? Please, if the 2 Feds didn't bailout...I don't think they would have gone kerplunkt..my opine though !! Just how did GM pay back so quickly? And did the Fed's Firing of GM CEO Waggoner really make GM all of a sudden a profitable company ?
The reward to U.S. taxpayers was the interest earned on the money. While I don't feel it'll be a profit making venture in the end, it'll be somewhat of a wash & it saved an important sector of America's manufacturing industry. Forcing out the CEO was caused by his lack of commitment to changing GM's business as usual attitude, especially on the taxpayers' dime. GM was able to become profitable because they finally got it; they began producing reliable vehicles that consumers want to buy & making wise investments.

You know has anyone ever found out just what was or is the financial shape of Cerberus ? Well, maybe not..since they are a Private Equity/Company ..so they don't have to divulge anything !!! I don't know if this is also a fair comparison but what about the Fed's Cash$Clunkers deal....that was supposed to spur jobs /or job creation....only so many cars can be sold and if people cannot buy enough cars that are being built then is that good ? And I [and a lot of others ] are bewildered over the so-called clunkers...when really a lot of useable vehicles got all crunched up. I heard alot of people were just taking very usable vehicles so they could get the $4000 or whatever to buy another car...maybe that was good for a few..but did those then owe more money on a new[er] vehicle ???:scratchhead: I also think it's a bit twisted and collusional that Cerberus owns [owned both Gm and Chrysler Financial !! Oh, y-ahhh, y-ahhh, any of you remember about a yr ago or so...seeing Tv/print ads for an ALLY BANK... Yeah, I did..got me wondering who they ??:scratchhead: Yeah, they're the new GM Financial..and it seems :werd: of how Ally can offer the best or some of the best % rates for savings/checking/Cds....Hmmmm, perhaps cause they got/are using Taxpayers/Bailout money... I just believe this is just a tiny amount of what we/I know and how much don't we know ? Anyone know where and what Wolfgang Bernhard is and doing : ,on board of the All Impressive DODGE Tomahawk !!:smokin:!
'Cash for Clunkers' is one of the few smart things the government has ever done. It spurred sales in a dead market during the worst of times & cleaned a lot of crap off the roads that shouldn't have been there anyway. The requirements to qualify were very specific & I'm certain few if any "classics" were injured in the making of this program. :cowtounge:
 

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I'm certain few if any "classics" were injured in the making of this program. :cowtounge:
Yeah, Car and Driver wrote an article talking about some of the "great" cars that were destroyed due to C4C; like the "unconfirmed" '87 Buick GNX that was purportedly turned in during the program. Buick GNX???? For $4500 dollar!!! Yeah, right!

If I saw someone selling a drivable Buick GNX (that's a stipulation of C4C) for anywhere near $4500, I'd drive to hell and back to pick it up. (Some of the parts alone on that car are worth $4500 by themselves)

A driveable Buick GNX for $4500! Good one!!!

Tangent, complete.
 

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Yeah, Car and Driver wrote an article talking about some of the "great" cars that were destroyed due to C4C; like the "unconfirmed" '87 Buick GNX that was purportedly turned in during the program. Buick GNX???? For $4500 dollar!!! Yeah, right!

If I saw someone selling a drivable Buick GNX (that's a stipulation of C4C) for anywhere near $4500, I'd drive to hell and back to pick it up. (Some of the parts alone on that car are worth $4500 by themselves)

A driveable Buick GNX for $4500! Good one!!!

Tangent, complete.
Oh Man, isn't that like hot& rare ? Well, here, just found this :

Cash for Clunkers claimed some really interesting vehicles - Was a Buick GNX among them?

Official Cash for Clunkers trade-in list reveals oddities too strange to believe — Autoblog :scratchhead:
 

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I doubt anyone traded in a gnx for 4k trade in allowance in cash for clunkers. Not a running one at least, maybe a wrecked, rusted out hull of one, and even that would be doubtful.

Beyond that, chrysler of today has little reason to ***** about interest rates being charged on loans they had to use to stay afloat. Chrysler paid off previous bailouts by the government at a significantly higher interest rate under Ioccocca. Interest rates have been way too low for a long time now, the public at large is going to go into cardiac arrest when the start paying real interest rates for borrowing money in the future. When i got my first home, interest rates were 17% for home loans, car loans were higher.
 

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Keep in mind that each of these supposed trade-ins only received $4,000 for their vehicle... yeah, they worked the system alright. :indifferent:
Well, my actual Ford Explorer earned me $4,500. This for a vehicle I would feel guilty giving away for free.

I doubt anyone traded in a gnx for 4k trade in allowance in cash for clunkers. Not a running one at least, maybe a wrecked, rusted out hull of one, and even that would be doubtful.
According to the C4C rules, your trade-in had to have been currently registered for at least a year (and some other stuff). The dealer I bought my Nissan at said that to complete the deal, I had to drive my trade-in back to the lot the next day. So that night, I JB Welded the hole in the engine block and filled the engine with water. The next day, I trailered my truck to a parking lot across the street from the dealership then drove it the rest of the way. With everyone at the dealership watching and laughing, I parked my truck and handed my salesman the keys. He smiled and bidded him a good day.

P.S. If anyone feels that they missed out on the C4C and would like to sell their Buick GNX for $4500, PM me. We can work out a deal.:thumbsup:
 

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My dad's cash for clunkers deal might have saved his life. He had a late model truck, but in his stubborn ways, would always dive his '91 blazer around. The list of issues included only front brakes, burning as much oil as gas, and tires balled to the point that it would get squirrely idling on wet pavement.

About the GNX claim...if someone did bring it in for cash for clunkers...wouldn't the dealership just offer then $5000 for it for a regular trade in?
 

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Well, my actual Ford Explorer earned me $4,500. This for a vehicle I would feel guilty giving away for free.



According to the C4C rules, your trade-in had to have been currently registered for at least a year (and some other stuff). The dealer I bought my Nissan at said that to complete the deal, I had to drive my trade-in back to the lot the next day. So that night, I JB Welded the hole in the engine block and filled the engine with water. The next day, I trailered my truck to a parking lot across the street from the dealership then drove it the rest of the way. With everyone at the dealership watching and laughing, I parked my truck and handed my salesman the keys. He smiled and bidded him a good day.

P.S. If anyone feels that they missed out on the C4C and would like to sell their Buick GNX for $4500, PM me. We can work out a deal.:thumbsup:
Sounds good, a grrreat way to legally "bend rules" !!:thumbsup:

My dad's cash for clunkers deal might have saved his life. He had a late model truck, but in his stubborn ways, would always dive his '91 blazer around. The list of issues included only front brakes, burning as much oil as gas, and tires balled to the point that it would get squirrely idling on wet pavement.

About the GNX claim...if someone did bring it in for cash for clunkers...wouldn't the dealership just offer then $5000 for it for a regular trade in?
Yep, all seem to make good points.I seem to recall that the model year cutoff was for older than 1984... I've been thinking though that a lot of people,poorer/disadvantaged people have some older cars ...and it's those types[ i.e. Native Indians/American // Senior Citizens that don't have the funds,,,and lower income people]] that I feel need the help the most. For example, when I was on the Big Island last yr [March-April], I saw a lot of Native Hawaiians:)[ as well as non-Native Hawaiians] driving older ,beat up/run down vehicles ! I think these people ought to{have been} be helped... Don't the Politicians who drew this bill/$4C program realize these things ?
 

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My dad's cash for clunkers deal might have saved his life. He had a late model truck, but in his stubborn ways, would always dive his '91 blazer around. The list of issues included only front brakes, burning as much oil as gas, and tires balled to the point that it would get squirrely idling on wet pavement.

About the GNX claim...if someone did bring it in for cash for clunkers...wouldn't the dealership just offer then $5000 for it for a regular trade in?
sounds like preventative maintenance issue to me.
So in another 20 years when what he is driving now has turned to crap does the govt need to buy that car too?
 

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They should be thanking the US Government and taxpayer for giving them money when no one else in on the entire planet would.
Just a little FYI , it wasnt only the US gov/ taxpayer that helped , the Canadain and Ontario provincial gov and taxpayers also gave money to help out the auto sector
 

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Back to the subject at hand, I don't see how Marchione can call anyone shysters when nobody had a gun to his head signing agreements. I want to see Chrysler survive, but when a business plan was devised, the money borrowed at x% interest was certainly part of it. Is he saying the interest MUST be revisited in order for them to survive, or is it just a question of recovery would be much easier and swifter?
I've done my part by buying a new Challenger in '10 and I'm thinking of getting a '11 GWE SRT. I tell you what Sergio, you'll get a better interest rate when you can show us a realistic picture of the car I'm supposed to drop $45,000+ on SIGHT UNSEEN!:notallthere:
 

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How did GM pay back it loan so quickly.... They took the money from another GM loan. IE-they took money from the right pocket and put it the left pocket. We, the tax payers, still own a big part of the company.

C4C.... Yep it got a few pieces of junk off the road but 10 to 15 years from now there will be big hole in the spare parts business. Just where do you think all the rebuilders get their parts from.

Shyster... look who is calling the kettle black. The big 3 isn't doing us any favors. I bet his salary and bonuses didn't take a hit when this all this came down. I don't feel one damm bit sorry for them. In the end we will pay even if they get the rates reduced they will stick it to us any way you look at it.
 
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