Chrysler to file for bankruptcy protection

[Haykakan]

Re: Chrysler to file for bankruptcy protection

It seems people can't afford cars without loans. That also means people don't have 20-30 grand in cash to spend on a car. Seems like leasing and easy credit was artificially driving the auto industry and now the plug has been pulled..

You are right about the easy credit and it obviously applies to a lot more then car loans(ie. credit cards, morgadges...). The consumer based economy i guess you could say consumed itself and now it is resetting. Before the bankruptcy rules changed a couple of years ago, i saw people taking out huge loans to buy machinery for their shops which they used to generate a huge income then they defaullted on the loans and declared bankruptcy.These people kept the money they made, did not pay the creditors (ie banks, equipment suppliers, me..) and somehow kept most of the machinery which they used to open up a new shop under someone elses name. This was not happening just in the auto industry and finely the government changed the bankruptcy rules and made it more costly to gain protection.

[KanadaHye]

Re: Chrysler to file for bankruptcy protection

And the same governments whose policies caused these problems are now part owners of this and other dysfunctional companies.


Chrysler restarts with the Viper
The factory that makes the Dodge Viper sports car is the first to reopen after bankruptcy.

NEW YORK (CNNMoney.com) -- Chrysler will soon be making cars again.

Chrysler Group announced Monday that it is restarting a factory, after shutting down all of its manufacturing for nearly seven weeks following the bankruptcy of Chrysler LLC. Chrysler Group is the new company that emerged last week with most of Chrysler's assets and a new ownership structure.

The first plant to reopen is the one that makes the Dodge Viper sports car.

The Viper has a 600 horsepower V-10 engine and a price tag that starts at about $90,000. The Viper was introduced in the 1992 model year, and only 25,000 have been sold since then.

The Conner Avenue Assembly Plant in Detroit that makes the car employs 115 people.

Chrysler LLC had announced last year that it intended to sell off the Viper brand. The high-performance, 10-cylinder sports car sells in low numbers. Ultimately, Chrysler said it had not received any bids that met its requirements.

Chrysler's other plants remain idle.

"At this time, we cannot give exact timing in regards to the start of production at our other manufacturing facilities," Chrysler Group said in a statement.

The Viper brand and the plant that makes the car, the Conner Avenue assembly plant in Detroit, were taken over by the "new" Chrysler that emerged last week from bankruptcy.

The Chrysler Group is owned by a combination of the Italian automaker Fiat, the United States government, the United Auto Workers union's retiree trust and the Canadian and Ontario governments.