What are some emotional and financial controversies that Chrysler company has had?
REPORT: Fed predicts it will lose $30B on auto industry bailout by Chris Shunk (RSS feed) on Dec 10th 2009 at 1:27PM 2009 isn’t quite over yet, but we’re pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they’ve been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs. The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back an estimated $52 billion of its original investment. That’s horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the
General Motors and Chrysler have used the majority of their bailout funds for day-to-day expenses such as payroll costs and payments to suppliers, a government watchdog has found. A report released Thursday by the special inspector general for the $700 billion financial bailout fund said GM used 65 percent, or about $32 billion, for operating expenses such as payments to employees and suppliers. GM has received $49.5 billion from the government. Chrysler has used 84 percent of its funds on day-to-day expenses. Chrysler has received $12.5 billion in total. The report says GM has $13.7 billion left in bailout funds. GM’s Chairman and CEO Ed Whitacre Jr. has said GM may repay its government loans in one lump sum instead of quarterly installments. Sources: http://www.google.
Chrysler was among the companies boycotted by gay rights groups after removing advertisements from the ABC sitcom Ellen in 1997, which it deemed “controversial.” In 1987, it was discovered that Chrysler sold an estimated 32,750 cars that had been test-driven with disconnected odometers – some as much as 500 miles – before being shipped to dealers. Chrysler settled out of court with complainants. Chrysler CEO Lee Iacocca sought to minimize damage to the corporation’s public image by calling a news conference in which he termed the action “dumb” and “unforgivable”. Sources: http://en.wikipedia.
