If you're keeping a list of who's been naughty or nice, you might want to sharpen your pencil for Chrysler and GM. In a special message of holiday cheer, Chrysler announced through filings last week that its pre-bankruptcy self doesn't appear to want to make good on its $3.7 billion loan from U.S. taxpayers. The money went to Chrysler (now called, officially, the "OldCar Co") through the Troubled Asset Relief Program (TARP) in April of 2009 when the company announced its "fast track" Chapter 11 bankruptcy.
Counter that against the letter then-CEO Bob Nardelli wrote to stakeholders before the money came through:
"Our viability plan demonstrates that Chrysler will repay the U.S. government loans in full, with a premium beginning in 2012," Nardelli wrote. "As we have indicated all along, shared sacrifice is necessary for Chrysler's survival."
Nardelli, long gone, doesn't have to answer why, but we hope he blushes when he looks at himself in the mirror in the morning. The announcement also appears to fly in the face of TARP's marching orders, which counted recoupment as a major factor in its passage through Congress. The thinking was that no TARP funds would ever add to the national debt. At least from what we've heard from Chrysler, that doesn't appear to be the case.
When we reached out to Chrysler for comment, spokesperson Shawn Morgan told us: "First, the "Chrysler" you are talking about is now called "OldCar Co" and that company is still in bankruptcy. That company, "OldCar Co" made a filing last week however, you'd need to speak with that company for a comment." The nuances of the "old Chrysler" and "new Chrysler" as created by the bankruptcy filing are likely to be lost on most in the American public.
To paraphrase Gertrude Stein, $4 billion is $4 billion is $4 billion. Especially when it's public money.
Journalist Chris Woodyard, author of USA Today's DriveOn blog, describes the awful conditions in which Chrysler is operating as a reason for its inability to pay back the loans made to the "OldCar Co."
"Chrysler is on track to post the worst sales performance of the 10 largest automakers this year," .......
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Poster Comment:
Detroit already has a 50% unemployment rate,and the unemployment will soon be running out with no workers working and paying the taxes necessary to extend it or to keep paying out welfare,food stamps,utilities,etc,etc,etc. Are we having fun yet?
