U.S. Pushed Fiat Deal on Chrysler

[Hannah Bell]

JUNE 6, 2009

Internal Emails Reveal Resentment; Court Upholds Pact

WASHINGTON -- The Obama administration rushed an alliance between Chrysler LLC and Fiat SpA despite Chrysler's worries about Fiat's financial health and its willingness to share technology, according to internal company emails.

The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. A Chrysler adviser at one point said the deal risked looking as if the U.S. auto maker and the Treasury Department, which helped broker the pact, were "in bed with a shady partner." In another note, an official referred to the Treasury Department as "God."

http://online.wsj.com/article/SB124424451815990495.html#mod=djemalertNEWS


Chrysler Appeals Court Refuses to Block Asset Sale to Fiat

June 6 (Bloomberg) -- Chrysler LLC creditors lost an appeals court bid to block the carmaker’s sale of its best assets to a group led by Italy’s Fiat SpA and plan to appeal the decision to the U.S. Supreme Court.

A three-judge panel of the court delayed the Chrysler sale until 4 p.m. June 8 -- or until the Supreme Court says the sale shouldn’t be delayed. The judges affirmed the decision of the U.S. bankruptcy court, which said the only alternative to the sale was liquidation of the company. The appeals court will issue an opinion later, explaining their ruling.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahrd3UXnqVSk

[Demeter]

1. Marry in Haste, Repent in Leisure

The whole damn theme of the Obama administration has been public window dressing and private expediency and shove it under the rug. War, Economy, Health Care....

I voted for something a little more CLASSY than that. I voted for Truth, Justice and the American Way. I voted for Change I could Believe in.

I cannot believe in this.

[DainBramaged]

2. So, is Fiat going to build a Ferrari for Chrysler like Mercedes did

(the Crossfire) and sell off Chrysler when they realize they made a bad deal?


Cerberus, making bad deals worldwide (Chrysler is officially off their portfolio on their website). "We hold ourselves and all of our portfolio companies and management teams to the highest ethical standards and business practices."

[MercutioATC]

3. Well, Cerberus could have just sent it into bankruptcy...

They were "pushed" if they wanted financial assistance. They could have refused the money and gone bankrupt.

[david13]

4. Does anybody know what Crossfire means?

Why would Fiat want them? Mercedes did not sell them, they had to do worse than give them away.
dc

[steven johnson]

5. In arranged marriages, love developes gradually.

Or in India, the husband's family burns the new bride to death if she doesn't toe the mark.

Anyone got some gasoline and a lighter?