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NYT: Gov't To Prepare Chrysler For Bankruptcy
Treasury Dept. Has Deal With UAW, Sources Say

POSTED: 12:32 pm MST April 23, 2009
UPDATED: 1:19 pm MST April 23, 2009


The U.S. Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as next week, people with direct knowledge of the action told the the New York Times on Thursday.

People involved with the talks told the newspaper the Treasury Department has an agreement in principle with the United Automobile Workers union, whose members' pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing.

The Treasury has been negotiating with lenders as Chrysler races to meet a government-imposed April 30 deadline to swap debt for equity, cut labor costs and negotiate an alliance with Italy's Fiat Group SpA. Chrysler has four plants and thousands of employees in Ohio.

Fiat Chief Executive Sergio Marchionne said he remains committed to a deal with Chrysler, though he said he could not assess the liklihood that the deal with go through. He also reiterated that Fiat will not put in cash of its own for the deal. Chrysler's creditors have asked Fiat to put in $1 billion.
 

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I also heard that GM will be randomly closing its US plants down for weeks at a time. Some plants could stay closed for up to 9 weeks at a time. The US auto industry is looking pretty wobbly right now.
 

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Too many Americans bought too many foreign vehicles. Now all of America is hurting. Everybody has their reasons but almost everybody is worse off. Pretty stupid in my opinion.
 

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I truely believe this is a result of the UAW and the government with the CAFE standards.
 

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Chapter 11 has a purpose, if it comes to that. If it happens, what comes out of it will be stronger and more competitive.
 

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True in theory but only if the powers wishes it to survive.
 

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Hmm, I know it has to get worse before it gets better, that's why I'm waiting till the last minute to find an insane deal on a new Chrysler vehichle...prolly SRT-8 charger.
 

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If they are unable to budge the unions then no plan will work, the unions have to give in order to make this successful.
 

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So it looks like the unions and Chrysler came to an agreement.
 

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Discussion Starter #10

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What I found funny about this was the concessions makes the wages competitive with Toyota employees who are non union. Now if the unions can learn to take a position of neutrality in politics I would be a happy camper.
 
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