July 19, 2009

Chrysler and its connections have deceived the American people, Congress and at least 2 Administrations!

by Peter Stern

THIS IS SOME MAJOR SHIT, FOLKS!!!


It is unconscionable and then we bailed them out, let them go bankrupt and give them more bail-outs?


Let the public beware! Follow the money trail!

Dear President Obama, Administration and Congress:

How did you let Chrysler, et. al., get away from you people? There is no accountability to the American people. There is no punishment to those who deserve it.

(...with thanks to Steve, Sandie and others re: help with various links on this issue...)


FYI,Cerberus in ancient mythology was a ferocious 3-headed dog


Subject: More on Chrysler and its connections...!
.

There is a little known fact about Chrysler ownership that is not publicized or even mentioned in the press. Until bankruptcy Chrysler was owned by Cerberus Capital Management, who bought the Chrysler assets from Daimler Benz. The Chairman of Cerebus is a guy named John Snow. Snow was W. Bush's secretary of Treasury in the first two years of Bush's first term. He resigned in two years and became CEO of Cerberus. Cerberus soon took over Chrysler.

If that isn't political enough, check this out. The Chairman of the company's international unit, Cerberus Global, is non other than Dan Quayle.

Since Cerberus is a private company and not publicly traded, they don't have to expose a lot of financials to the press. I got this information because I was interested in who the hell is Cerberus? Even private companies have to submit a 25K report which is registered with Hoovers and this information is available with some digging on the net. Which I did out of curiosity.

I don't know what all this means exactly but Chrysler took the bailout money before declaring bankruptcy. Cerberus also owns GMAC which is the financial arm of GM. But the big puzzler is why doesn't the press pick up on this??

Check this org chart out and you can see how protected they are by all the layers of organization.

http://www.muckety.com/Query?SearchResult=4713&SearchResult=5009417&graph=MucketyMap?_r=2D




John Snow: http://www.ask.com/bar?q=%22John+Snow%22&page=1&qsrc=0&ab=2&u=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FJohn_W._Snow

Dan Quayle: Dan Quayle is Chairman of an international division of Cerberus Capital Management, a multi-billion dollar private equity firm, and president of Quayle and Associates. He is an Honorary Trustee Emeritus of the Hudson Institute Dan Quayle - Wikipedia, the free encyclopedia

Global Politician - Economy: Cerberus Acquisition of Chrysler Makes Little Sense
Economy: Cerberus Acquisition of Chrysler Makes Little Sense

Prof. Peter Morici - 2/21/2008

Cerberus will acquire control of the Chrysler Group from DaimlerChrysler. Cerberus will pay $7.4 billion for 80.1 percent of Chrysler Group and assume the North American Automakers™ pension and health care liabilities. Daimler would retain 19.9 percent ownership.

This arrangement fails to address Chrysler's fundamental competitiveness problems on three fronts.

First, the legacy health care costs impose a severe disadvantage on Chrysler. None of the Detroit Three can carry these liabilities and produce vehicles equal in quality and content to the North American transplants of Asian manufacturers.

Although the United Autoworkers Union has surprised observers by endorsing the acquisition, it is not clear how the legacy health care costs can be wholly removed from the cost of building vehicles without Cerberus sinking billions in new funds and partially frustrating the claims of present and future retirees.

Given the tough competition and slim profit margins that characterize the U.S. and global auto markets, whatever residual claims remain would come back to haunt the new company.

Second, the legacy costs aside, the company carries substantial labor cost disadvantages owing to work rules, job classifications and other elements of the UAW contract that raise the hourly cost of labor at Chrysler above those at Toyota and other North American facilities of Asian manufacturers.

Despite Cerberus's strong track record of cutting costs in other firms it has acquired, the concession accepted by the UAW in deals with Chrysler, Ford and GM indicate a Cerberus-UAW deal will not completely and adequately align non-legacy labor costs with Toyota and other transplants in the United States. Without that, Chrysler engineers would have to be superior in every way to Japanese and Korean engineers, which is absolutely inconceivable.

Third, the new company will still be tethered to Daimler in elements of vehicle development, which is why Daimler retains 20 percent ownership. Mercedes and Chrysler enjoy some of the worst reliability and quality records in their classes of cars. A continued alliance would preserve some of the worst elements of the failed merger. Daimler has failed to put a good product on the road in North America, and a continued permanent alliance with Daimler would be foolish.

The additional capital Cerberus will put into Chrysler could be invested by DaimlerChrysler but Daimler chose not to invest such funds, because Chrysler is not a good bet. Cerberus has not demonstrated how it changes Chrysler's fundamental matrix of liabilities.

Prof. Peter Morici teaches at Robert H. Smith School of Business at University of Maryland.


Cerberus - Press Releases Public Statements (Snow has been with them since 2006)

NEWS RELEASES:
(July 18, 2007) Prepared Remarks of John W. Snow Before the National Press Club

(July 11, 2007) Prepared Remarks of John W. Snow Before the Detroit Economic Club

(June 19, 2007) Cerberus Capital Management Acquires Torex Retail

(May 14, 2007) Cerberus Takes Over Majority Interest In Chrysler Group

(January 23, 2007) Handelsblatt Europe Op-ed "In Praise of Europe's Growth" by John W. Snow

(October 19, 2006) Cerberus Capital Management Appoints John W. Snow as Chairman

(April 3, 2006) GM Reaches Agreement to Sell Controlling Stake in GMAC

Look at this one: Cerberus to boost Aozora stake by $416 million- Global Markets-Markets-The Economic Times (Indian Bank)

Cerberus to boost Aozora stake by $416 million




3 Mar 2008, 1443 hrs, REUTERS

TOKYO: US private equity firm Cerberus Capital Management will pay up to $416 million to raise its stake in Japan's Aozora Bank Ltd to nearly 46

per cent, soon after the midsize lender cut its earnings outlook on subprime losses.

Cerberus, which currently holds almost 38 per cent of the bank, will pay as much as 42.9 billion yen ($416 million) to boost its stake by 8 percentage points, Aozora said in a statement, adding that it supported the bid.

The private equity firm will bid 325 yen per Aozora share, a premium of 17.8 per cent on Aozora's closing price of 276 yen on Monday.

The increased investment comes a little more than a month after Aozora said it would miss its full-year profit target by 58 per cent, hurt by $300 million in losses on investments linked to the US subprime mortgage market
.

Cerberus took Aozora public in 2006 after acquiring its failed predecessor, Nippon Credit Bank.

The increase in investment mirrors a similar move by US buyout firm J C Flowers & Co LLC late last year. Flowers, which revived Aozora rival Shinsei Bank, in November bid about $1.8 billion for almost a third of that bank.

What is the President going to do about it? What is Congress going to do? What will the American people do? What about the Judicial sector?


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Peter Stern of Driftwood, Texas, , a former director of information services, university professor and public school administrator, is a political writer well-known and published frequently throughout the Texas community and nationwide. He is a Disabled Vietnam Veteran and holds three post-graduate degrees.

Posted by pstern at July 19, 2009 08:46 PM

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