O.K. , what do your crystal balls see coming from this ? http://www.allpar.com/news/index.php/2008/12/cerberus-chrysler-to-be-exchanged/
Cerebus Hands Chrysler to UAW
- Thread starter Crazynuff
- Start date
Cerberus is a money management company -- some would call it a hedge fund -- with $27 billion under management, 7.5% of which is attributable to Chrysler.
The Chrysler investment is a big loser for Cerberus. I believe the negotiations Cerberus's well-connected people had with government officials, the receipt of bailout money and now this apparent dumping of Chrysler equity is part of a Cerberus exit strategy designed to get it out of a bad trade.
In other words, I believe Cerberus is cutting its losses to calm its clients, preserve its capital and move on to better trades. It kept Chrysler Financial because it still sees that segment as a good trade.
In its statement, Cerberus says, "...Cerberus has advised the Treasury that it would contribute its equity in Chrysler automotive to labor and creditors as currency to facilitate the accommodations necessary to affect the restructuring." I am not sure what it means to contribute equity as currency, but if the UAW ends up owning some or all of Chrysler, there is some sweet justice in that.
Let them try their hand at the management they have been so critical of. Let them look their fellow UAW members in they eye and explain why they can no longer be paid to not work because the now employee-owned company needs to be profitable. Let them go on strike against themselves and demand pay and benefits they are not willing to give.
The Chrysler investment is a big loser for Cerberus. I believe the negotiations Cerberus's well-connected people had with government officials, the receipt of bailout money and now this apparent dumping of Chrysler equity is part of a Cerberus exit strategy designed to get it out of a bad trade.
In other words, I believe Cerberus is cutting its losses to calm its clients, preserve its capital and move on to better trades. It kept Chrysler Financial because it still sees that segment as a good trade.
In its statement, Cerberus says, "...Cerberus has advised the Treasury that it would contribute its equity in Chrysler automotive to labor and creditors as currency to facilitate the accommodations necessary to affect the restructuring." I am not sure what it means to contribute equity as currency, but if the UAW ends up owning some or all of Chrysler, there is some sweet justice in that.
Let them try their hand at the management they have been so critical of. Let them look their fellow UAW members in they eye and explain why they can no longer be paid to not work because the now employee-owned company needs to be profitable. Let them go on strike against themselves and demand pay and benefits they are not willing to give.
Last edited:
chefdennis
Veteran Expediter
Phil wrote:
Parting is such "sweet sorrow!" I to can see the justice in that statement!!
Kind of make you go ,"hmmmmm!"
Parting is such "sweet sorrow!" I to can see the justice in that statement!!
Kind of make you go ,"hmmmmm!"
mjolnir131
Veteran Expediter
The end of Nov dylmer rated there 20% of chyrsler to have a value of .... dut da dut ..... 0.
i see the uaw using only union trucks to move stuff and then after a year or so will state they cant figue out why it's still losing money.
it's in iccu and like most times that happens it's just a wait and watch until the end finally does come
i see the uaw using only union trucks to move stuff and then after a year or so will state they cant figue out why it's still losing money.
it's in iccu and like most times that happens it's just a wait and watch until the end finally does come
Self policeing organizations would/could be a good thing if they "hop to it" and the 40% that choose to contribute cause the 60% that don't to be in step. Regardless, I can't imagine the lessons that will be learned from such an experiment. It otta be good to watch.