So What Happens if Chrysler Goes Bankrupt?

[Scob]

I hate to even bring this up but given recent news, this is now a possibility but I can't believe the government will allow it to happen. Even if it gets to that point, I would think Cerebus could find a buyer for the Jeep marque - guess it would depend on the buyer if that is a good or a bad thing.

Nevertheless, for those of us with several months of payments remaining and still under warranty, what would happen should Chrysler go out of business. I'm sure that open contracts and the receivables would be sold off as assets so we would still have to make payments, but there would be no guarantee of being able to get warranty work done if necessary. And while I know there are lots of parts available for the 3.7 engine, you just know the costs would go through the roof.

A year ago when I bought the Liberty even though we knew that Chrysler was on shaky ground, not for one moment did I think then that any of the Big 3 would get to the point that their continuing solvency was in trouble. Any one have any thoughts or insight into this?

 

[LibertyOrDeath]

In my opinion Chrysler could go bankrupt and the Dodge and Chrysler vehicles might go away but the Jeep brand will never die. Someone will buy it, might even scrap everything but the Wrangler. I don't see Jeep going away in my lifetime.

 

[Marlon_JB2]

Bankruptcy doesn't always mean that the company becomes liquidated. (Defunct)

That would be kinda funny... Chrysler Financial goes under... completely under. Free Jeeps for everyone!

 

[2003renegade]

woo

 

[BMR]

I hate to even bring this up but given recent news, this is now a possibility but I can't believe the government will allow it to happen......

Personally, I am against our govt bailing out the automakers. If DC goes under, then DC goes under. I know thats highly simplified, but that's an essential part of the free market economy we so value.

 

[Treyz02KJ]

Personally, I am against our govt bailing out the automakers. If DC goes under, then DC goes under. I know thats highly simplified, but that's an essential part of the free market economy we so value.

I was against them bailing out the bank. *shrug* they taking my money, (and a lot of all our money for that matter) and bailing a failing business model out. They are in the red for a reason.

Said Treasury Secretary Henry Paulson: “We regret having to take these actions. Today’s actions are not what we ever wanted to do — but today’s actions are what we must do to restore confidence to our financial system.”

??? so, spending 7 billion dollers makes me feel more confident about my financial system? I'd rather just not spend 7 billion dollers. that would probably make me feel better. (and its already been said 7 billion wont fix the problem)

I think you see where I stand on this issue, There are a couple of government run banks in the world... the only problem with that is that they are in communist countries. This 'bail out' is a bad idea. case closed. let peoples houses get forclosed, they didnt pay, let the banks go down, they didnt lend money wisely. and finally DONT USE AMERICA'S HARD EARNED MONEY TO FIX PROBLEMS THE GOVERNMENT SHOULDN'T BE FIXING ANYWAY.



Thanks jeepkj.com for an outlet of my bottled up feeling on this subject..


(Boy that got off topic quick. sorry about that)

 

[kj924]

Lets see.........if I start a business and it fails, do you think the gov't will bail me out of the hole? NO!! So why should any other business get a free bail out?

There have been alot of auto makers that have gone belly up in the past century, so why should DC get a freepass? Let them go out of business, let the corp execs sell off their million dollar homes and go back to a normal life.

People today are too eager to keep this or that company out of trouble.


Just my opinion

 

[tjkj2002]

By fed law if a automaker or brand is cut(like plymouth or oldsmobile) the former company or parent company has to honor all warrenties and supply OEM parts for 10 years after the dimise of the brand/company.

 

[Scob]

By fed law if a automaker or brand is cut(like plymouth or oldsmobile) the former company or parent company has to honor all warrenties and supply OEM parts for 10 years after the dimise of the brand/company.

But how would that apply if the company actually goes bankrupt and ceases to exist? Granted, I think this is unlikely as I believe that even if Cerebus were ready to pull the plug, it could sell off Jeep more easily than its other lines and - presumably - the new owner would then be forced to honour all existing warranties.

 

[tjkj2002]

But how would that apply if the company actually goes bankrupt and ceases to exist? Granted, I think this is unlikely as I believe that even if Cerebus were ready to pull the plug, it could sell off Jeep more easily than its other lines and - presumably - the new owner would then be forced to honour all existing warranties.

Chapter 7 is liquidation,chapter 11 is reorginization.

And yes they are still liable for warrenties and OEM parts.

 

[JLRockies]

Abecrombie & Fitch employs 7k more people than Ford
Target employs more people than GM

If either of these companies has a bad Christmas, couldn't they ask for a bail out using the same argument for the big 3?

The best thing for the big 3 is chapter 11 since it will give them the opportunity to null-void these union contracts and renegotiate them. The UAW has already stated on Capitol Hill that they have no intention on making any concessions to help improve the situatuion which was pretty much the #1 wrong answer.

 

[offroadohio]

I have been trying to get warrenty work done on my AMC Gremlin for a while, DC will not honor the warrenty..?????

 

[maverick7321]

That would be kinda funny... Chrysler Financial goes under... completely under. Free Jeeps for everyone!

Would not do me any good for my liberty is financed through GMAC for I bought my liberty used from a Chevrolet dealer.

My free lifetime oil changes I got with my Jeep Liberty purchase might be in Jeopardy though if GM goes under! I am even doubting that would happen though unless my chevy dealer goes under with GM for the free oil changes are though the local delership not GM.

And yes for all those wondering all the fluids that are running through my Liberty currently are Mr. Goodwrench I even have a GM Goodwrench oil filter on it and ACDelco Spark plugs in my engine.

As I said before I have free oil changes for as long as I own the Liberty from the Chevy dealer I bought it from and am not going to turn that down. And the only thing I have had to change since I bought it has been the oil.

They changed all the other fluids the day I bought it last year as part of the sale so it will be a while before I have to have those changed.

 

[tjkj2002]

I have been trying to get warrenty work done on my AMC Gremlin for a while, DC will not honor the warrenty..?????

AMC has been gone longer then 10 years,your out of luck plus any warrenty would be long gone for a Gremlin.

 

[LibertyOrDeath]

AMC has been gone longer then 10 years,your out of luck plus any warrenty would be long gone for a Gremlin.

Nope you are wrong. DC is just in denial that they were ever responsible for the Gremlin.

I have been trying to get warrenty work done on my AMC Gremlin for a while, DC will not honor the warrenty..?????

You need to fill out an Form ID-10-T and mail it in the DC HQ.

 

[tumanator]

You need to fill out an Form ID-10-T and mail it in the DC HQ.

Now that's just not nice....

 

[Marlon_JB2]

What is this DC you guys keep talking about?

 

[maverick7321]

What is this DC you guys keep talking about?

I think the DC they are talking about means Daimler Chrysler and Daimler has nothing to do with things any longer.

 

[offroadohio]

AMC has been gone longer then 10 years,your out of luck plus any warrenty would be long gone for a Gremlin.

Again, you need not take things so seriously.

 

[tjkj2002]

tumanatorQuote:
Originally Posted by MidnightLiberty
You need to fill out an Form ID-10-T and mail it in the DC HQ.(biggrin)

Now that's just not nice....

Now that there is funny(rotflmao)(rotflmao)(rotflmao)(rotflmao)(rotflmao)(rotflmao)