Scrooged

In the spirit of Christmas as delivered by the Obama administration, it's probably appropriate to let you know what your bailout dollars are up to.

Y'all lent Chrysler $3.7 Billion a while ago through that super slush fund called TARP that Obama and his minions said was a rush rush emergency or else deal.

Supposedly, it was to be paid back once Chrysler got healthy again.

'Course, there wasn't any real plan on how that was supposed to happen, 'cept for some vague deal where Fiat would take over the company and own it along with the UAW.

Now Fiat, that Italian giant, does have some experience with dealing with unions ... after all, almost all of Italy's businesses have confrontational dealings with the various unions that control most of that country.

But the reality is that Fiat saving and / or turning around Chrysler is about as likely as AlGore swearin' off global warming.

See, Fiat hasn't sold cars here since Haight Asbury, and has no cars or trucks currently certiied for sale here.

No vehicles with EPA fuel economy certification, no vehicles with crash bumper certification, or airbag certification, or collapsible steering column certification, or side door beam intrusion certification, or rollover certification, or.... well y'all get the idea.

Certifications that typically take American manufacturers, who have done it before, and know the process, about four years.

So, it appears that it may be four or more years before Chrysler has any new products for sale from Fiat.

And remember, Barry Obama was telling everyone less than six months ago that Chrysler was failing because they didn't build cars that anyone wanted.

That would be those cars that they have to sell now until the new Fiats get here....

So, what's going on with your bailout money?

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.

Your money went to the old 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.

Back in April, then-CEO Bob Nardelli told the country 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. As we have indicated all along, shared sacrifice is necessary for Chrysler's survival."

Now Nardelli is long gone, so he doesn't have to answer why Chrysler will be renegging on its obligation.

 The announcement also appears to fly in the face of TARP's provisions, which Barry Obama said counted recoupment as a major factor in its passage through Congress.

He promised that no TARP funds would ever add to the national debt.

But now that Chrysler says it won't be making repayment, that doesn't appear to be the case.

Here's what New Chrysler spokesperson Shawn Morgan said recently:

"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 saying they wouldn't likely be repaying the government loan. However, you'd need to speak with that company for a comment. We are now the "New Chrysler" and we really have no obligation there."

The nuances of the "old Chrysler" and "new Chrysler" as created by the bankruptcy filing are probably not really important to taxpayers, who apparently have been ripped off again.

See, what Obama and his henchmen did was essentially wipe out all the debt, shareholders, bondholders, and creditors of the Chrysler Corporation (the old one), and, transfer the valued assets to the new company along with just under $4 billion in capital (your money).

Hell, anybody ought to be able to make money in that situation, especially the New Chrysler with the UAW helping it out as owners.

But repay the $4 Billion?

$4 billion is a lot of money, especially when it's taxpayer money.

But, at least at the moment, Chrysler couldn't repay that amount if it wanted to.

Chrysler is on track to post the worst sales performance of the 10 largest automakers this year.

Sales fell 38% during the first 11 months of this year.

In November, sales fell another 25% even though Ford and General Motors largely swung back to even compared to the same month a year ago.

Underscoring its lack of product, Chrysler, Dodge and Jeep have no press conferences scheduled for the all-important January Detroit auto show where new models are typically unveiled amid lots of hoopla.

Chrysler used to hold one press conference for each brand before its bankruptcy.

Chrysler dealers are stuck selling the same tired models that have gone without updates for years now.

This flies in the face of Chrysler's last major government bailout, of course.

Back in 1979 the company took $1.5 billion in government-backed loans (while only $1 per year went to pay CEO Lee Iacocca's salary at the time) but was able to repay it ahead of schedule.

Which begs the question: Since the UAW are now owners of Chrysler, what obligation do they have to repay the taxpayer?

Or will they hide behind the "Old Chrysler / New Chrysler" alias as well?

Half the work that is done in the world is to make things appear what they are not.

--- E. R. Beadle

 

Politicians are masters of the art of deception. --- Martin L. Gross