Wednesday, February 2, 2011

Chrysler Losing Money, Wants Another Bailout, Gives Bonuses To UAW Workers

Read this article from Red State. I can't believe this, Chrysler already got a bailout before, now they are losing money again, want another bailout but was able to afford giving the UAW (United Auto Workers) workers bonuses? How can you afford bonuses if you are losing money? This is b.s. click on the links to the other news articles as part of this story to get all the feedback. Some highlights below:

Chrysler’s $3 billion loan application is still pending, denying the automaker a chance to refinance its pricey bailout loans before an expected initial public offering this year.

“It just underlines the special challenges for Chrysler,” Sean McAlinden, chief economist for the Center for Automotive Research, said of GM’s decision to withdraw its application.

“They’ve got another really tough year and they need the money.”


Chrysler’s net revenue of $41.9 billion for 2010 was slightly below the $42.5 billion called for in the five-year business plan that the automaker announced in November, 2009, and just short of some analysts’ expectations.

“What Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations,” Marchionne said in a statement issued by the company.

And the automaker is forecasting a better year for 2011, now that its dealers have a new stable of vehicles to attract shoppers.


United Auto Workers President Bob King said he is “pleased at the turnaround that Chrysler and the other domestic automakers have made. The dedication and hard work of UAW members at Chrysler have contributed greatly to this success, and we appreciate the company’s recognition of the contribution made by employees. We are convinced that Chrysler has a great future and look forward to more opportunities for our members to share in that success.”

General Holiefield, UAW vice president of the Chrysler Department, described the collaboration between company and union in achieving strong 2010 results as “a testament to what can be accomplished when all employees recognize that their jobs are at stake and pull toward a common goal.”

The common goal is repayment of government loans, Holiefield said. “We have more work to do, much more, but with focus and determination, we can reach any goal.”

Ken Lewenza, president of the Canadian Auto Workers union, expressed surprise that CAW employees will be rewarded as well. “Chrysler is on the right track and gaining momentum with our new products, and I expect this success to continue into 2011.”

1 comment:

DeanO said...

The bonus angle just infuriates me to no end. The check and balance, the black and red are so simple...but UAW bonus checks. Sure, give these fools another multi-billion dollar bail out; after all what is a few billion in a 14 trillion dollar deficit which can NEVER be repaid?