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Statement Re Federal Assistance Received

by Blog Editor

January 2, 2009 6:54 PM

Chrysler Chairman and CEO Bob Nardelli said on behalf of the leadership
team, that he was pleased to report that the Company's discussions with the
Treasury Department have been completed, and that today, Chrysler received
an initial $4 billion loan to help bridge the current financial crisis.

“We recognize the magnitude of the effort by the Treasury Department to
complete the multiple financial arrangements and appreciate their
confidence in Chrysler. We would like to thank the many constituents who
worked with us to meet the loan requirements. This initial loan will allow
the Company to continue an orderly restructuring, while pursuing our vision
to build the fuel-efficient, high-quality cars and trucks people want to
buy, will enjoy driving and will want to buy again.”

Tags: Corporate Business

Comments [22]

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22 Comments

YayBailout Jan 2, 2009, 9:27 PM

Burn in Hell, Chrysler. Or should I say thank you. Thank you for shoving the business end of a gun down my throat so your pathetic company can survive a few more months.

andrewc Jan 2, 2009, 10:40 PM

Don't spend it all in the same place. This is your one chance to win the confidence of the American people. Don't blow it. You have to spend money to make money, but this money is for you to retool, reengineer and re-invent how Americans drive. The definition of insanity is doing the same thing over and over again and expecting a different result. If Chrysler is to survive (and I am to get my money back!), Chrysler has to be a VERY, VERY different company. Throw down, or America will cheer as the UAW contracts are voided, the Chrysler factories are gutted, and the machinery melted down for metal scrap to ship to China.

MopaRalliart Jan 3, 2009, 8:44 AM

Im glad Chrysler got my money....when I was younger Chrysler products kept me off the streets and out of trouble...I owe Chrysler alot...

Jason Freeman Jan 3, 2009, 8:44 AM

In reality, the Treasury Department, most likely, has zero confidence in the loan. Remember, the Bush Administration originally did not want to be the source of the loans. However, when Congress failed to pass a resolution, what the hell was the Administration going to do? Apparently, they -- like "The Big Three" themselves -- are out of touch and believe that the public is largely for a bailout, so in the minds of the Administration, failure was not politically feasible. THAT is why Chrysler received a cash infusion from Americans, not because the Treasury Department actually believes that anything productive will come of this. After all, since when has the government had any real reservations about wasting taxpayer money? Think about that.

Mopar Man Jan 3, 2009, 8:44 AM

Please god stay in business, the thought of me having to buy a Silverado or an F-150 is making really nervous.

Zedd Jan 3, 2009, 8:44 AM

I'm not at all pleased that the Chrysler felt it nessassary to steal $4billion dollars from taxpayers and potential customers. We all know this "loan" isn't going to make a single bit of difference. Mercedes bought Chrysler for $30 billion and sold it for $7billion, only a 77% loss in value in a little over a decade. I didn't have a choice in the matter of this "loan" but I do have a choice in what vehicles I purchase. I can assure you Mr. Nardelli, Chrysler will never see me at one of their delerships again.

boycotchrysler Jan 3, 2009, 11:14 AM

Boycott "Cry"sler. Don't let them get away with this robbery.

americancarnut Jan 4, 2009, 1:01 PM

All who oppose the auto bailout should be ashamed of themselves. In essence, you are condemning thousands of blue collar workers to living off of unemployment and food stamps due to the loss of jobs that will ensue if we do not support these companies. I think we all know that the executives will be okay if the company goes under, but the working man who is the backbone of the company is the one who suffers. Also, do not blame the entire company on the actions of a few executives. Mr. Nardelli and Mr. Press have been in Auburn Hills only a short time. Daimler is the one who pushed Chrysler into this mess and I am confident that American mgmt will save it. Let's give them time and support to turn their company around and begin building reliable, stylish vehicles that we all want to buy. God Bless America!

brougham-holiday Jan 5, 2009, 9:25 AM

Chrysler looks to be trying to turn itself around, I hope this works and that more Americans wake up and see how important our domestic auto industry is.

DodgeStratus Jan 5, 2009, 10:53 AM

It seems Chrysler's biggest issue is UAW Contracts. Most Americans don't like the fact that this extra cost is past on to them when buying your products. Your quality has gotten much better and even since going private in 2007 has shown improvement. Chrysler could benifit from a Government Controlled Bankruptcy to bring it back to being a viable company. The UAW's time is over. Don't let the union steal our tax money. Invest it to keep hard working blue collar workers on the job. I watched a lot of your under the Pentanstar Videos and if you apply what's being done at the Warren Assembly Plant to other plants quality will be second to none. Perhaps instead of a thank you, you should make yourself more transparent to the American Tax Payers. Show us progress on the Phoenix Engines, up coming models etc.

furtog Jan 5, 2009, 12:18 PM

That is nice that chrysler is getting a bailout money to continue to make junkie jeeps...that you can't even depend on...I can't even drive my 2007 jeep anywhere without it dying on me...I am getting tried of taking to the shop! and the funning thing is that the main problems started after the lemon law expired so I am stuck with a JUNKIE JEEP that I owe too much on!!!! BUYER BEWARE of this company's vehicles...

Mopar Man Jan 6, 2009, 1:25 PM

In response to Zedd's post, let me clear something up for you.

When Chrysler was bought by Daimler-Benz it was one of the most profitable car companies in the world. At the time Chrysler had its development to production cycle down to 18 months, far faster than any competiter. Daimler essentially bought Chrysler, mismanaged it, sucked Chryslers money and put all of its best engineers and resource to Mercedes, rather than the Chrysler/Jeep/Dodge brands. Then Chrysler didn't do so well, then they killed off Plymouth thinking that would help cut costs. But no, they kept neglecting Chrysler until Chrysler was a crippled worn-out beaten starving old man barely capable of going anywhere. Mercedes bought Chrysler, stole Chryslers money, drove it off a cliff, then kicked it to the side of the road.

Screw Mercedes. Long live Chrysler.

ricku Jan 6, 2009, 4:12 PM

I am sick and tired of the media bashing Chrysler for not building good products. Let's fight back .....RIGHT NOW. A full page ad something like this: Perception: Chrysler does not build affordable, high quality, good gas mileage cars Reality: Then show a Caliber, Compass, Patriot, Sebring, Avenger, and even The P/T. Have verbage on their price, their great highway mileage, AND QUALITY by stating we had the fewest recalls of ANY manufacturers including the imports.....AND OUR LIFETIME WARRANTY. (Do the same for the Charger and 300) Nobody out there knows what we have. Lets get on the offensive and be aggressive. NOW !! We can do it !! Sincerely, A life-long Chrysler guy (my dad has been a dealer for over 50 years).

PlumKrz70 Jan 6, 2009, 9:41 PM

I agree 'ricku'. Chrysler needs a real marketing blitz now! Key in on your strengths as mentioned and don't forget your loyal customers that purchase from you time and time again. It is this group that can help rebuild your image. Be creative and good luck.

and003 Jan 8, 2009, 7:11 AM

Man, what's with this negativity? Chrysler's trying to fix itself, and the people who posted these anti-Chrysler messages are acting like the company has committed a crime ... or worse, acting like the fact that Chrysler exists is a crime in itself.

thecarautority1 Jan 9, 2009, 9:38 AM

I hope that Chrysler goes out of buisness. i mean the cars suck. the quality, safety, gasmileage stink. Think of all people who lost their lives just going out to the store without even knowing they were going to die because of Chrysler's lack of quality which malfunctioned airbags and seat belts. www.dontbuyachrysler.com

and003 Jan 10, 2009, 2:38 PM

Is that so, thecarautority1? Well, at least some of us are trying to change things for the better. Are you?

chrysler1 Jan 11, 2009, 5:28 AM

I love how these ignorant people say Chrysler stole this money!!!!!!!! Ignorant to say the least..............uneducated is a better word. How many of these people own a house or car that they are paying back....? So basically they are also robbing whoever lent them their money. This is a loan, to be paid back with intrest!!!!! Every government supports their industries, except the US government. Unfortunately uneducated people who don't even have credit and can't get a loan will always be angry when another gets a LOAN !!!

dave437 Jan 11, 2009, 9:51 AM

You know Karma has a way of providing the answer. Even with the bailout, Pentastar will not survive, Cerebrus never wanted it to survive. They bought it for a steal from Mercedes, they ( Cerebrus ), was just going to hack it up and sell off what they could. Jeep - Nissan

and003 Jan 11, 2009, 11:39 AM

Pentastar will not survive, eh? We'll see about that!

chrysler1 Jan 11, 2009, 8:30 PM

If Chrysler becomes a strong automotive company with strong sales and a healthy bank account........then nobody....including Cerberus would want to kill them or break them up. If they did the public outrage would be massive. Lets all hope for the good of America and the American automobile industry....Chrysler survives!

Robert Jan 13, 2009, 7:34 AM

Please hire some marketing people who know the car business!!! Sell benefits! Despite all the negative comments on this blog, we all want to see a thriving, healthy Chrysler building cars for America, in America as a publicly traded company. Are you with me?