Tarpley & Underwood
Financial Advisors, LLC
Chrysler's Bankruptcy
Will Chapter 11 Lead to "New Lease on Life"
How much federal money goes into this? The U.S. government will take an 8% share in the new version of Chrysler. It has provided $5.5 billion in federal aid to the automaker; now it will provide between $7-8 billion more to keep Chrysler operating. Chrysler CEO Robert Nardelli will step down at the end of the bankruptcy period.1
Will it really give Chrysler a “new lease on life”? That is the claim of President Obama, but while auto industry analysts and Chrysler employees hope for the best, there are still some question marks. Presumably, it will take two or three years (at the earliest) for the Fiat-built Chryslers to arrive in U.S. dealerships.
In the interim, Chrysler will offer what it has been offering – in the view of many consumers, a weak product line. There is no guarantee that Fiat-built Chryslers with better gas mileage will wow new car shoppers. Consumers and their dollars will still have the final say when it comes to Chrysler’s longevity and prosperity.
Pres. Obama with his auto task force, Chrysler CEO, Robert Nardelli, and Treasury Sec. Geithner-April 30, 2009
These are the views of Peter Montoya Inc., not Tarpley & Underwood Financial Advisors, LLC and should not be construed as investment advice. Tarpley & Underwood Financial Advisors, LLC does not provide tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.
Citations.
1 latimes.com/news/la-fi-chrysler-bankruptcy1-2009may01,0,3635721.story
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[4/30/09]2 usatoday.com/money/autos/2009-04-30-chrysler-talks-update_N.htm[4/30/09]
[4/30/09]3 nytimes.com/2009/05/01/business/01primer.html[4/30/09]
[4/30/09]4 pbgc.gov/media/news-archive/news-releases/2009/pr09-23.html[4/30/09]
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