4 replies to this topic

[Young Burnsy]

So we all know Chrysler is a mess but this I really don't understand.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

If the deal is rejected and Chrysler liquidates, “it will mean the end of an iconic, 83-year-old American car company,” and the loss of jobs for 38,500 workers, said lawyer Corinne Ball of Jones Day in a court filing that emphasized concessions from the U.S. government, Chrysler’s owners and employees, all in an effort to avoid the worst-case scenario.

Chrysler employees and retirees would lose $9.8 billion in benefits and $2 billion in pension payments, lawyers said in yesterday’s so-called first-day pleadings that seek to organize Chrysler’s 25 affiliates into a single bankruptcy proceeding.

So if these number are right...

Chrysler has 38,500 employees and these employees receive pay/benefits of $9.8 billion a year?

$9,800,000,000 / 38,500 employees = 254,545 $/employee

http://www.autoblog.com/2009/01/05/by-the-...s-over-edition/

Chrysler sold 1,453,122 vehicles in 2008 and 2,076,650 vehicles in 2007.

$9,800,000,000/ 1,453,122 vehicles = $6744

So Chrysler would have to allot almost $7000 dollars per vehicle just to pay their employees.

What a mess...

[Che'_Moderator]

Common sense called. It said to say hello

[v4lve]

maybe now will be the time to get the sprinter i've always wanted

[Zappo]

Your numbers are wrong. Read the last sentence in the quote again. You are missing people who aren't being counted, just the amount of money being paid out.

Also, if the company is liquidated, brands could be sold off and empolyees of that brand my be retained. Jeep used to be part of AMC before they went bankrupt, although I believe Chrysler bought the whole company in order to get Jeep and liquidated the rest.

The 38,000 isn't even worst case though, because it most likely doesn't count suppliers, distribution chain, etc., which aren't part of Chrysler.

[khax]

i still don't understand how the bailout even happened