Who benefits most in Chrysler-Fiat deal?

After an abusive affair with Germany's Daimler AG ending in 2007, and a dysfunctional relationship with former owner Cerberus Capital Management that ended with a bankruptcy filing Thursday, can Chrysler LLC learn to love again? The alliance between Chrysler and Fiat Group SpA -- the Turin, Italy, automaker will take a 20 percent stake in Chrysler ...

[larry]

so obama takes a company away from the investers and gives it to fiat and the workers . the investers got crap .what a great deal from this great commie obama.

[Ken Spooner]

AS INSPECTOR CLOSEAU WOULD SAY, "Perhaps A Little Song To Keep Up The Kerrage'?"

http://spoonercentral.com/2009/Obama_Motors.h...

[Moral of the story]

Buy Ford.

[Charlie]

Yet another unprecedented action by a U.S. President. He tried to strong-arm secured debtholders into accepting 30 cents on the dollar when they have a legal claim to receive 100% in a bankruptcy proceeding. Then when he doesn't get his way, he calls them out on national TV. Its really unbelievable. He is so drunk with power that he doesn't even respect contractual obligations.

This company is dead anyway unless the government continues to keep it afloat with our money. I don't see many private investors willing to lend money to a company controlled by the unions. The goals of the union are a little different than traditional shareholder. The union will primarily be concerned with getting as much money as they can for their rank and file, not with running a profitable company. This is a recipe for disaster. I'm never buying an American car again.

[Old Moses]

Just who in their right mind would ever buy Chrysler again ? Just as soon as you get it home, Obama is liable to decide to sell again. He might need more money for his empathy toward little pregnant teenage ghetto girls.

[wisconsin papermaker]

I see all this talk about bailout, but no mention of the private investment firm in New York that is getting all the money,
1 guy, Steve Feinberg Cerberus investment firm, look it up the rich get richer!

[Pissed]

And the unions are good for America. Yeah, about like a rattlesnake bite. They had rather see a company go down than to take 10 cents an hour pay cut. This is good for America.

[simple]

The Left. The UAW and the NWO.

[simple]

Amazing...for decades the UAW and the government has hindered the American auto industry with unreasonable demands, rules and regulations.

Now it has broken our industry, and the UAW and government end up owning 2/3 of the company...at the expense of the taxpayers and investors.

...simply amazing...

[Bambie]

Change we can believe in. Where ? I thought Obama and his liberal goons were against all the rich capitalist ? Oh, I see unless it is their rich capitalist, O.K. I got it now. Wonder how much Obama is making on this deal ? I have never heard of a Chicago politician doing anything for free.

[Cara]

Buona Fortuna Crysler !

The article refers to Fiat's products as small and stylish.

Actually most of the Fiat products are just small.

Does anyone know ANYONE who bought a Fiat for its engineering ? Does anyone know ANYONE who bought a Fiat ?

It looks like "small" will be available in the US at inflated prices since the unions (with government support) will have majority interest.

The unions have a track record: public schools.

Crysler will unfortunately take on the same dismal record.

[Snake Pliskin]

Wake up!

Time to die.

[Jon]

Fabbrica Italiana di Automobili Torino has its own financial problems to contend with right now. If their products were so competitive and desirable then why aren't they sold here already?

Fiat makes small cars. They don't make revolutionary cars, or have a reputation for leading-edge engineering. They have Italian style, but look past the skin and you're left with a second-rate product that can barely compete against the Volkswagens and Toyotas they compete with.

The Obama Motor Co. has yet to demonstrate any sign that a true "car guy" is making the decisions at Chrysler. They'll get the 40mpg car that the White House wants, but they still need to come up with the bigger vehicles the other 99% of US citizens prefer.

[Good Luck]

If you want to read some interesting information on how the White House tried to force bondholders to accept its terms, check out an interview with one of the lawyers representing the bondholders:

http://newsbusters.org/blogs/tom-blumer/2009/...

...essentially, do what we want or we will try to destroy you.

Bottom line is that Obama has stepped into a role unheard of in US law. He has effectively taken over the auto industry and is now going to try to remake it in the model that he sees fit. This is what tin pot dictators do, not US presidents. He either has no understanding of law or he does not care.

The UAW will run the company into the ground and come back to the government for more money. The vested interests in Washington will give in to more bailouts rather than admit this was a sham from the begining.

So how exactly does it work for Ford? Will they now have to negotiate labor contracts with an entity (UAW) that has a controlling interest in Ford's competition? I think on the basis of that, the UAW should be made to split up or pull out of the Chrylser deal entirely.

[Danforth]

Anyone here ever own a Fiat? I have and it was constantly in the repair and auto body shop. This is the company that built the Lada for Russia and Cuba, a piece of drab design and bad quality. I've owned Chryslers for over 20 years but never again. A Fiat with a Chrysler name is still a Fiat.

[Sandrolini]

The National Insurance Institute reports that 45,000 people who were killed while in small cars in the past five years would have likely survived if they were in larger, heavier autos. Anyone who would trade safety for fuel economy must not mind the potential of being one more in that statistic.

[Yvonne]

There is a reason Fiat is still a small company. They build BAD cars. The cars are small and ugly, absolutely. But poorly engineered. Fiat was mostly popular in communist countries because of its low price. There is a reason for that.
Not much changed in the quality of their engineering since then and frankly I don't see Fiat ever gaining popularity in the US.
Chrysler pairing up with Fiat? Bad mistake. I don't see a future in it, maybe just further decline of Chrysler, which is a shame.

Small cars (however ugly and unappealing they are) may be gas efficient. I wonder though why no one ever talks about how dangerous they are in case of an accident. I prefer to pay a bit more for gas and drive less, but feel safer in my big American made Lincoln.

[Yvonne]

I am so glad I don't own Chrysler stock. Phew!!

[Alex]

Bambie wrote:

Change we can believe in. Where ? I thought Obama and his liberal goons were against all the rich capitalist ? Oh, I see unless it is their rich capitalist, O.K. I got it now. Wonder how much Obama is making on this deal ? I have never heard of a Chicago politician doing anything for free.

People wanted change.........they GOT change.....

[Resist Obama]

Who benefits most? The welfare minded UAW deadbeats! You know, the same folks who ruined Detroit in the first place.