April 30th, 2009
09:01 AM ET
14 years ago

BREAKING: Chrysler to file for bankruptcy, official says

WASHINGTON (CNN) - Chrysler plans to file for bankruptcy, an Obama administration official said Thursday.

Full story

Filed under: Auto Bailout • Obama administration
soundoff (87 Responses)

    OK everyone, all together now – Two, four, six, eight, who do we appreciate? – Bush, Bush, Bush!

    April 30, 2009 09:02 am at 9:02 am |
  2. Tim

    Last night, Obama said the talks with the creditors were going well. I wonder if he mislead the shareholders?

    April 30, 2009 09:09 am at 9:09 am |
  3. Thomas

    Sic transit gloria mundi

    April 30, 2009 09:11 am at 9:11 am |
  4. Art

    So much for the bailout. Time to bring out the K car again.

    April 30, 2009 09:12 am at 9:12 am |
  5. phoenix86

    GM should as well. The government, together with the UAW, is stealing that company from its creditors.

    This adminstration has destroyed more wealth than anyone else in history, it's like they are at war with the American people.

    April 30, 2009 09:12 am at 9:12 am |
  6. Fair is Fair


    The UAW must be in a snit about this... there's NO WAY any sane bankruptcy judge is going to continue the insane UAW labor contracts.

    UAW – once you realize that you're obsolete in today's day and age, the better the rest of our country will be.

    GM... you're next. The medicine sometimes tastes awful, but the cure is worth it.

    April 30, 2009 09:12 am at 9:12 am |
  7. joseph gestetner

    I remeber the Right saying back in Oct '08 that we need to let the BIG THREE go bankrupt instead of pumping money in it. Yet the Dems and the left-on-money-issues Bush, spent $$$ on them, and look where we got: BANKRUPCY!!!

    Ok, the dems didn't spend the money, it was Bush, but the Dems on The Hill and in blogs supported the Bush move and said the right is crazy for thinking of it.

    My point: the left should stop doing or supporting ""feel good" options when it comes to important issues.

    April 30, 2009 09:13 am at 9:13 am |
  8. RR

    Wait a minute. I thought the BILLIONS in tax payer bailout money was supposed to PREVENT bankruptcy!

    Will Chrysler be forced to give that money back?

    April 30, 2009 09:16 am at 9:16 am |
  9. Hilarion T. Benedicto Valle Verde, Pasig

    Obama gives AIG/banks Billions.

    He glosses over hundreds of millions given as bonuses to the guys who got them into that mess.

    Why not for US automakers?

    April 30, 2009 09:18 am at 9:18 am |
  10. Juan from L.A

    Good!!! Maybe Ford now can step it up with GM and start making quality cars. NOT SUVs!!!

    April 30, 2009 09:20 am at 9:20 am |
  11. A Texan

    Let no one forget that our corporate leadership, with the eager cooperation of Conservatives in Congress, led the nation over the cliff and into this recession. While they did not plan on a recession, they did not plan for anything. They saw a chance to make big money fast and they could not resist the temptation. The people who made housing loans to people who couldn't make the payments made a lot of money by making those loans. They then sold the worthless loans to others, thus making another profit and passing the hot paper on to someone else. What have we learned?

    1. A man will do anything for a hundred million dollars, including bankrupting his nation.

    2. Corporate self-regulation and self-discipline is a myth sold to us by three generations of Conservatives, who beat the "free market" drum so persistently that many voters believed it. Conservative voters should feel like suckers. They were hoodwinked.

    3. "Free market" now means a market controlled by foreign based global corporations. Foreign corporations sell us their products, but our best jobs have gone overseas. We can't afford the products we invented and once manufactured.

    4. It is past time for Conservatism, which has opposed every meaningful reform and improvement proposed for our nation, to disappear. We can't afford to continue the Conservative de facto policy of outsourcing of jobs, lowering of our wages, reductions in our benefits, deterioration of our national infrastructure, and international humiliation.

    5. Never again.

    April 30, 2009 09:22 am at 9:22 am |
  12. howard

    i think its about time if there is on less auto co it should be them and that will probably make the others mor compative ford seems to be the oinly on with there heads on right

    April 30, 2009 09:23 am at 9:23 am |
  13. The Other Michael in Houston

    So what happen to all the tarp money the recieved?

    April 30, 2009 09:23 am at 9:23 am |
  14. Doug

    Do we get our bailout money back?

    April 30, 2009 09:24 am at 9:24 am |
  15. Some Guy

    Now what am I supposed to do with all this rich Corinthian leather? Have an ice day!

    April 30, 2009 09:27 am at 9:27 am |
  16. Kevin in Ohio

    Good News. First step toward countering the disastrous longterm stranglehold of the UAW.

    April 30, 2009 09:27 am at 9:27 am |
  17. John in Northern NY

    This is great news. Finally, a positive sign. I have renewed hope in America. We cannot continue to prop up zombie companies. We need manufacturing but let the market decide not political needs.

    April 30, 2009 09:29 am at 9:29 am |
  18. Gary

    This was the inevitible result, we could have saved billions in bailout money if we had let them file bankruptcy back in the Fall. This is equally Bush's as well as Obama's failure.

    The end result: Creditors need to take 25 cents on the dollar for debt, workers need to take a 15% pay cut across the board, retirees need to take similar cuts, execs need to be limited to $700K per year and shareholders need to lose everything. If all of that happens, I think they'll survive.

    April 30, 2009 09:30 am at 9:30 am |
  19. steve

    So what happens to the taxpayers TARP money?

    April 30, 2009 09:34 am at 9:34 am |
  20. Dale

    I despise Ford, but now they appear to be the last and only hope for the American Auto Industry... Sad. The UAW is institutionalized infighting. The management of the big three is inept. I lived in Detroit for 4 years, and the culture there is one of learned helplessness. Maybe it is time for a new start-up US auto company based anywhere besided Michigan.

    April 30, 2009 09:36 am at 9:36 am |
  21. JP

    The biggest reason Chrysler went bakrupt is the UAW. Stop wasting billions on GM and let them do the same thing. Bankruptcy worked for US Air and Kmart. Unions destroy companies and make us all pay more for less.

    April 30, 2009 09:37 am at 9:37 am |
  22. niko belic

    YES!!! no more PT Cruiser...Tuners and imports rock!!!

    April 30, 2009 09:39 am at 9:39 am |
  23. Rob Kole

    Why hasn't Obama approached the creditors and twisted their arms like he has to everyone else in this process.?

    April 30, 2009 09:39 am at 9:39 am |
  24. S.M

    There wouldn't be any need for them to file for bankruptcy if they were making vehicles that are reliable. Many Americans are no longer buying American made vehicles because the dealers make them to break down.

    You cannot expect the consumer to purchase Chrysler or Ford vehicles when there are numerous problems after three to six months after purchasing the vehicle, the dealer is aware of the problem, but sticks you with the cost of the repairs.

    Chrysler and Ford are aware that these problems exist, therefore, they are responsible for digging their own grave.

    A few years ago one of the managers of Toyota said that if there is a problem on the line, the whole line is shut down and everyone comes together to figure out where the problem exist. Once they pinpoint the problem, it is corrected and production resumes.

    Maybe Ford and Chrysler should follow Toyota's example and perhaps in the near future the American consumer will once again purchase their vehicles.

    April 30, 2009 09:40 am at 9:40 am |
  25. Abiola Germany

    This is economics that i learned back at the UNI.If company failed let them file bankrupcy and start afresh.Bailing compinies is not capitalist but a socialist style.Chavez blamed for nationalization and we doing the same thing back home...double standard

    April 30, 2009 09:40 am at 9:40 am |
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