"Chrysler's lenders, including JP Morgan Chase, and Citigroup, rejected the first offer and proposed that Chrysler pay back 65% of it's debt as well as offer a seat on its board."

Great. Now we will have a whole group of broke companies telling each other what to do.

Chrysler isn't looking at liquidation under chapter 7 bankruptcy, they're looking at restructuring under chapter 11. You should know better than that Meg.

@LegoMan322: Just like the rest of the world -- a whole bunch of broke countries trying to tell each other what to do.

I don't know that a liquidation is all that likely. Bankruptcy is a virtual certainty. But the creditors wouldn't be able to move Chrysler's assets for anything more than a short song in an environment where all the automakers are reducing capacity. That said, that pittance may be worth more than the destroyed brand and worthless intellectual property, which are what other companies typically establish as things that make them worth more to their creditors alive.

QUICK! GIVE THEM MORE OF MY MONEY FOR NEARLY NOTHING IN EXCHANGE!

I'll give them $1000 for a new car, that should help

And those billions of dollars of loans changed what exactly?

Good to hear, its about time a failing company went bankrupt instead of bailed out. Maybe after the restructuring they will come back with a viable business plan that fits more with this current social environment.

So by playing hardball with Fiat, the end result for Chrysler is bankruptcy, where Fiat can just buy what they want anyway?

What am I missing here?

@dragonfire81: The bank accounts and tax records of the executives? Why...did you think it was going to help the company? : )

Why is bankruptcy viewed as such a bad thing? A timely bankruptcy is the best thing for these ailing businesses and for the economy as a whole.

@dragonfire81:
I wonder if we (the taxpayers) will get our money back... :(

To quote Ron Gettlefinger, president of the UAW;"NOOOOOOOOOO!"

@R3PUBLIC0N: What do you mean, "NEARLY?"

@Featherstonehaugh: Airlines have practically turned bankruptcy into a regular business stategy.

@Harley Balabanian: I heard on NPR this morning that even if they start in chapter 11, it will very likely turn into a chapter 7.

Bob Nardelli, your life-clock has run out.

@Radi0logy: Whoa there. I know you're in a dollar-store mindset (only a dollar! Shit, anything is worth just a dollar. Hello Virgin Mary candle!), but go onto their website and think good and hard about which car you'd give $1000 real dollars for.

this is kind of depressing i was really hoping that they would come out of this. I never understood why everyone seems to hate the automakers more than the banks. I was layed off from a company that makes parts for these automakers so it really looks bleak that I'll be returning to work anytime soon.

@nursetim:

HAHAHA! Yes, unions had an important role to play in times past. Their work is done, time for them to die and for us to move on.

I still don't see how any of this is going to get anyone to buy the huge backlog inventory of their shitty cars that have been sitting in shipping yards for months and months b/c the dealers can't order them since they're not selling any off the lots.

GM & Chrysler are going under. They are simply too stupid to survive. We should be putting money and effort into finding new jobs and manufacturing for the area.

@Hrly Blbnn: BRN! Mg gt wnd!

@lannister80: For a sec, I was looking forward to those circuit city-esque liquidation sales.

!!!!Buy a 2005 Chrysler Sebring for 70% off! Only $134,999.99!!!!

@winstonthorne: Yet another company he's sent down the drain. That guy is the poster child for executive overcompensation.

This is no shock to me. They make vastly inferior cars with no innovations and terrible reliability while remaining extremely overpriced in comparison to competitors.

I believe Ford can pull out, as they have some good innovations, and are bringing new products people want. Chrysler/Jeep? Nothing.

so if they file bankruptcy... there NOT going to liquidate like Circuit City where you wont be able to find a deal at all because all the prices are jacked up to MSRP?

@dragonfire81: Good point, why the hell did we give them money in the first place?

she simply will not die

Sorry but I think it should fail. We need to stop rewarding bad management. The workers will find other jobs in time.

I'm likely to get a dose of this same medicine myself in the near future. I work for the largest PC manufacturer on the planet in the server division and bad management is likely to get me laid off soon as well. Management has to learn that it is the average workers that keep their exorbitant salaries viable. Hell without the worker bees there is no need for managers.

Don't even get me started on CEO and VP pay percentages. Its the largest disparity ever in history and out of control.

@ADismalScience: As per the article:
"Yesterday, a report from Bloomberg described the likelihood of liquidation at 95%"

What's your definition of likely?

@Featherstonehaugh: Well, I don't think a car company has ever survived a bankruptcy (that I know of). The biggest worry is this:
"Would you buy a car or some other product with a multi-year (or multi-decade) lifespan from a bankrupt company?"

Most consumers are worried about what happens to the warranty if when Chrystler/GM turn out their pockets. Worst case is Chapter 11 fails to save the company and folks end up with no warranties. Though Obama has stated the US Gov would back warranties in the event of collapse, wouldn't you rather just get a Ford or Toyota?

@dragonfire81: Our tax money was spent to delay the inevitable a few months. We're in a capitalistic economic system. Companies die. Let this one die, and maybe a better one will emerge.

@Featherstonehaugh: You are absolutely right. Bankruptcy can be good. However nobody wants to buy a car from a company sitting in Chapter 11, due to fears that they won't be around to honor a warranty. Chrysler offers a lifetime powertrain warranty.

@thebigbad:

I'm disagreeing with Bloomberg's conjecture in my commentary. That's sort of the point - I think 95% is too high a number. Though I would agree that liquidation is more likely than Chrysler continuing. The brand is dead.

@Featherstonehaugh: BWAHAHAHAHAHA!!! :)

Oh, sorry, were you serious?

@sasquatch28: I think most people hate the "face" of the automakers they see, he dealers. You always feel like you should go home and shower after dealing with them.

@Featherstonehaugh: That was NEVER the goal. This was a way to ensure all the execs got all their perks and bonuses before firing everyone and padlocking the doors.

@LegoMan322: When did JP Morgan Chase go broke?

@KyleOrton:

A Viper perhaps?

@Featherstonehaugh: Bankruptcy is bad for union contracts.

@Harley Balabanian: Isn't that like telling your spouse that you're not committing adultery since you're sleeping with a blonde, not a red-head?
Bankruptcy = Bankruptcy.

@Josh_G: Don't forget than what Fiat buys and keeps open will become non-union.

@nursetim: Are you a nurse?

If we own a Chrysler vehicle (I have a 2007 Sebring) should we sell it before they go under? Will the already expensive replacement parts get even more expensive and/or become hard to get? What are the repercussions to current Chrysler owners?

@Trai_Dep: bankruptcy does not equal bankruptcy. one involves Chrsyler's continuing operation, just sheltered from it's creditors, the other involves total liquidation of the company

@Trai_Dep: Fortunately, chapter 7 =/= chapter 11. There's a difference between what Circuit City went through and what United Airlines went through (specifically, one is around, and the other isn't)

They are done for. When they enter bankruptcy, the few number of people that may have bought a Chrysler will now look at other brands. There is no way them, or GM, or any other company entering bankruptcy now is going to emerge successfully.

@sasquatch28: I hate the light that the auto industry has been painted into. I hear lots of Americans bashing the industry yet they don't realize that there are a LOT of good honest hardworking people that work for the these companies that are going to be out of work. I wish the big three simply had the balls to cut out the unions or at least try. Sad day in my opinion.