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| Uh, about backing those car warranties?; Obama says, "Nevermind"... | |
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| Tweet Topic Started: Jul 24 2009, 07:30 PM (162 Views) | |
| Jolly | Jul 24 2009, 07:30 PM Post #1 |
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Geaux Tigers!
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http://www.americanthinker.com/blog/2009/07/whats_an_obama_promise_worth.html |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| QuirtEvans | Jul 25 2009, 01:18 AM Post #2 |
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I Owe It All To John D'Oh
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Do you know why the program ended? BECAUSE THEY AREN'T IN BANKRUPTCY ANY MORE. They can honor their own warranties. The government guarantee was only intended as a backstop, to give buyers comfort that, if the car companies went bust, the warranties would still be honored. Since the car companies are now not in danger of re-entering bankruptcy, they will honor their own warranties, and there's no longer any need for the government backstop. Only someone so blatantly partisan that he was looking to score points at any cost would think this is a broken promise. |
| It would be unwise to underestimate what large groups of ill-informed people acting together can achieve. -- John D'Oh, January 14, 2010. | |
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| Axtremus | Jul 25 2009, 06:52 AM Post #3 |
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HOLY CARP!!!
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Partisan ignorami... they post the darndest things.
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| Jolly | Jul 25 2009, 07:30 AM Post #4 |
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Geaux Tigers!
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Now...tell me again why pulling the money that backed the warranties was such a great deal? Chrysler says dealer legislation could force liquidation Wed Jul 22, 2009 8:59pm EDT By John Crawley WASHINGTON (Reuters) - Chrysler Group could again face the prospect of liquidation if legislation aimed at reversing its decision to terminate contracts with 789 dealers becomes law, a company executive said on Wednesday. Louann Van Der Wiele, a senior company lawyer, told a House Judiciary subcommittee that Chrysler faces a "tough road ahead" and efforts to restore dealer franchise rights "will simply take Chrysler back to the future" without the same options for survival that it had this spring. "Complete liquidation, with all of its dire consequences" could follow," Van Der Wiele said. Chrysler was on the brink of extinction when it entered bankruptcy on April 30, emerging a month later in an alliance with Italy's Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) and billions in U.S. government financing to help it retool its product lineup and better compete with leaner rivals. General Motors Corp sought court protection on June 1, also emerging several weeks later with lower debt, new labor concessions, billions in government aid and a plan to shave 1,300 dealers from its retail network. Automakers say they will save money and streamline retail operations with fewer dealers, who are separate businesses that purchase the vehicles they sell directly from the manufacturers. Congress is considering legislation to force GM and Chrysler to address assertions from dealership executives that their franchise rights were trampled on during the automakers' bankruptcies. Dealer lobbyists and prominent showroom owners have waged an aggressive campaign to force government action, saying more jobs were at stake amid a deep recession. "We all want the auto manufacturers to succeed but it's wrong to condone the abuse of bankruptcy law and the spending of taxpayer dollars to needlessly eliminate 169,000 jobs," said Jack Fitzgerald, owner of Fitzgerald Auto Malls. The dealer measure easily cleared the House of Representatives as part of a larger must-pass annual spending bill but it faces an uncertain fate in the Senate where support at the moment is less robust. Senate Majority Leader Harry Reid has said dealer legislation is not a top priority. The Obama administration's autos task force, which facilitated much of the more than $60 billion in aid extended to GM and Chrysler and positioned them for bankruptcy, opposes congressional intervention. But some lawmakers are using the threat of legislation to pressure the parties to reach a settlement, which the Obama administration has said it would not oppose. GM has begun paying dealers $600 million as part of dealer wind-down agreements through 2010, Michael Robinson, the company's senior corporate counsel for North America, told the Judiciary subcommittee. Chrysler has no similar financial arrangement in place for dealers but has redistributed most of the unsold inventory and special tooling at terminated franchises. While they fear legislation, the automakers note that their efforts to reduce dealer networks received the support of the courts, which approved their business plans in bankruptcy, and the autos task force. "They were commercial decisions the companies made," Ron Bloom, the task force's day to day leader, told the Judiciary Committee on Tuesday. "It's a very difficult situation." Bloom agrees that legislation would "make the situation worse not better" and that dialogue to resolve the matter is preferable. One solution, according to Bloom, may be to negotiate a framework where terminated dealers receive preference for |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| Axtremus | Jul 25 2009, 08:06 AM Post #5 |
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HOLY CARP!!!
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The point is that Chrysler has re-emerged from bankruptcy, it is now a new entity called "Chrysler Group LLC," and it is backing the warranties of Chrysler vehicles. Why would the government back Chrysler's warranties if Chrysler is already backing Chrysler's warranties? Can Congress further do something to screw up Chrysler? Sure it can. Congress, the administration, and any number of government entities can do any number of really stupid things that jeopardize any number of private sector companies' liquidity. This time around, for Chrysler Group LLC, bankruptcy is not an imminent threat. If you care so much, tell your elected representatives to not muck around with Chrysler's corporate decision to close the dealerships they have chosen to close. |
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| QuirtEvans | Jul 25 2009, 08:14 AM Post #6 |
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I Owe It All To John D'Oh
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Everything Ax said, plus the legislation will never become law. Even if it passes, Obama will veto it. |
| It would be unwise to underestimate what large groups of ill-informed people acting together can achieve. -- John D'Oh, January 14, 2010. | |
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