Topic: Chrysler Pays Off Bailout Debt (Not Really But Don't Tell Anyone) With SUV Sales

[trapeze]

Sucks when your plan to lower greenhouse gases gets all blowed up...

Chrysler and the White House will celebrate the Detroit icon's $5.9 billion repayment of government loans Tuesday in a ceremony that will be hailed by both sides for the same reason: The government bailout had become a liability for both entities.

In fact, government-free Chrysler is hardly off the debt hook, but is simply refinancing its debt with private rather than public debt-holders. For its part, the U.S. government will still have a 6.6 percent equity stake in Chrysler - but by removing itself as the company's loan shark, the White House can boast of the unpopular bailout's success in returning taxpayer loans 6 years ahead of schedule. That's an important sound-bite in an election year.

But there is one inconvenient truth you won't hear at the Sterling Heights, Mich. ceremony: Chrysler wouldn't be here had it not defied its green White House masters. Chrysler's return to profitability is a direct result of the fabulous success of its SUVs.

The White House hand-picked Fiat to shepherd Chrysler out of bankruptcy in June, 2009 because of Barack Obama's obsession with remaking Detroit's automakers in the image of their European peers. Convinced that Americans craved small cars to fight the warming scourge, the president demanded Fiat bring its best-selling 500 Eurobox to the States as part of the acquisition deal. Obama was convinced that Fiat could reform the immoral, gas-swigging, SUV-dependent Chrysler.

The exact opposite occurred.

Damn, that O'Bama sure is one crafty Irishman. Genius, baby...pure genius.

More here.

[charlesoakwood]

After it repaid its 1980s loans under the legendary hand of Lee Iacocca, Chrysler was unable to diversify into smaller vehicles.Today, as the truck boom fades before the specter of $4-a-gallon gas, Chrysler is still heavily dependent on truck sales.

None of the Big 3 significantly diversified into smaller vehicles.
They all had a laundry list of failure/also runs. Today Ford and Chevy's smaller vehicles are subbed out to Japanese companies who put domestic logos and trim on them.  Mazda and Toyota, I think.  Still their foreign counter parts have better sales and customer satisfaction.

If Chrysler were to market hot Hondas with the Chrysler logo and go for sales not margin, it would to them well in the long run.

[Sectionhand]

This is typical government thinking . It's like paying off your Visa card with your American Express card .

[Libertas]

I sure wish someone would come along and kick these fools in the groin, chop up their cards and end all bailouts forever!

[IronDioPriest]

Americans. Want. Large. Vehicles.

We have a myriad of personal reasons for our tastes. The bottom line is that in a free market economy, the people with dollars to purchase things will ultimately determine what is produced. It is an iron law of economics.

Frakkin fools.

[warpmine]

Americans. Want. Large. Vehicles.

We have a myriad of personal reasons for our tastes. The bottom line is that in a free market economy, the people with dollars to purchase things will ultimately determine what is produced. It is an iron law of economics.

Frakkin fools.

I'm sure the sheer fact that the Euros having much smaller families wouldn't have something to do with their decision to buy smaller cars now would it? Smaller houses mean having less stuff as well which translates into not needing large haulers.
Logic dictates that if you can afford the fuel and upkeep on a larger vehicle and you use it then buy it. If it's going to sit and collect dust then obviously you don't need it and when the need ariss, rent or borrow one.

Our black Irish Usurper, O'Asswipe and his minions just refuse to embrace the simplicity of LOGIC

[Sectionhand]

Americans. Want. Large. Vehicles.

We have a myriad of personal reasons for our tastes. The bottom line is that in a free market economy, the people with dollars to purchase things will ultimately determine what is produced. It is an iron law of economics.

Frakkin fools.

I'm sure the sheer fact that the Euros having much smaller families wouldn't have something to do with their decision to buy smaller cars now would it? Smaller houses mean having less stuff as well which translates into not needing large haulers.
Logic dictates that if you can afford the fuel and upkeep on a larger vehicle and you use it then buy it. If it's going to sit and collect dust then obviously you don't need it and when the need ariss, rent or borrow one.

Our black Irish Usurper, O'Asswipe and his minions just refuse to embrace the simplicity of LOGIC

And have you seen the narrow streets over there ?

[Pandora]

Americans. Want. Large. Vehicles.

We have a myriad of personal reasons for our tastes. The bottom line is that in a free market economy, the people with dollars to purchase things will ultimately determine what is produced. It is an iron law of economics.

Frakkin fools.

"Want" is plenty good enough reason for me.

One other aspect of the vehicle-size issue that always amuses is the sight of the virtuous "Match-Car" driver trying to transport truck-sized items.  Several years ago, we brought home the new dishwasher -- in the box, no less -- in the backseat of Gunsmith's F250.  Forget the 2X4's, the sheetrock, the mulch, the rock, the topsoil; where ya gonna put a roll of chickenwire in a Prius?  How much more virtue in having the "carbon/pollution"-spewing delivery truck do the dirty work?

These people make me laugh when they aren't making me sick.

[BigAlSouth]

This is a must read, for reasons carefully explained in the article.

So, to recap, the Obama Energy Department is loaning a foreign car company $3.5 billion so that it can pay the Treasury Department $7.6 billion even though American taxpayers spent $13 billion to save an American car company that is currently only worth $5 billion.

Oh, and Obama plans to make this “success” a centerpiece of his 2012 campaign.

And the saddest part of this charade? 52% of voting Americans will think that the President is awesomely brilliant.

Get yer red hot facts rat cheer:

Again, don’t forget the $4 billion in loans the Obama administration has “forgiven” that taxpayers will never get back – all in an effort to make this truly horrendous deal for taxpayers seem better than it is so he can claim credit for “saving the US auto industry” during the coming political re-election campaign.

http://hotair.com/archives/2011/05/27/the-fake-chrysler-loan-payoff/

[warpmine]

No need to take these facts seriously, after ll, It's Memorial Day, apss me a beer and a dog or burger, I have to get back more pressing matters, who's going to win American Idol this year.