Chrysler Financial Says, “F*ck Chrysler”
What is more important than doing everything you can to save your main line of income? Protecting your undeserved bonuses and exorbitant salary, that’s what.
Few Americans would have a problem living on a half million dollars a year. ESPECIALLY if that might be the only way we could keep ourselves in business. But there are people that just can’t make it on that kind of money, and they’re willing to roll the dice on their futures, and the futures of countless thousands of auto and car dealer employees, to protect their cash cow.
Top officials at Chrysler Financial turned away a $750 million government loan because executives didn’t want to abide by new federal limits on pay, sources familiar with the matter say.
The government had been offering the loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, which is racing to avoid bankruptcy. Chrysler Financial is a vital lender to Chrysler dealerships and customers.
In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burdens of the already fragile automaker and its financing company.
Chrysler Financial denied in a statement that its executives had refused to accept new limits on their pay.
The company’s decision comes amid a firestorm on Capitol Hill and elsewhere over the lavish pay of executives at companies being aided by government money. The uproar has made companies skittish about taking federal aid and hindered the Obama administration’s effort to revive lending by replenishing the coffers of the nation’s financial firms.The Treasury Department previously had loaned Chrysler Financial $1.5 billion, when less stringent requirements on executive compensation were in place for recipients of federal bailout money. Since that first loan was announced on January 16, the Obama administration and Congress have toughened the rules.
During March, when it seemed that the first loan would run out, the Obama administration began working on a deal to lend the company another $750 million.
Most of the agreement was in place, sources said. But on April 7, Treasury asked Chrysler Financial to have its top 25 executives sign waivers regarding their compensation, according to sources familiar with the matter who declined to talk publicly because they were not authorized to speak.
Within a week, the company responded that some of the executives had refused to give their approval. By last week, Treasury had rescinded the loan offer, the sources said.
These greedy asshats are betting on a recovery that doesn’t exist. It’s a bet they’ll lose, but I’m sure they’re nice and prepared for it. The workers and other employees who will also lose? They’ll just have to eat it. As always.
Tags: chrysler financial, greed
April 21st, 2009 at 2:35 pm
What do you expect? All they care about is their fat wallets. Know what, though? If Chrysler was a publicly traded company, you would bet your butt that they’d be taking the money and following the rules. They wouldn’t want to risk losing all those investors out of fear of them collapsing. That’s fine. When Chrysler Financial collapses, Cerberus can bite the bullet. I don’t care.
April 21st, 2009 at 4:37 pm
Amazing. They are such jerks.
April 21st, 2009 at 5:40 pm
That’s Corporate America, destroy a company all millions of lives in the process to protect those greenbacks spewing out their ears. No wonder the economy is a disaster.
April 21st, 2009 at 7:40 pm
psychopaths is what Corporate America is, it always was – why else was Teddy Roosevelt busting on big business at the turn of the 20th century?
I’ve been thinking about trading in the Ford. It won’t be for a Chrysler. Their small cars and sedans have been going downhill since ’98, so this isn’t a terrible suprise. I have to admit it, though, I really want one of those new Challengers, but that’s the muscle-car whore coming out in me
April 21st, 2009 at 7:40 pm
Chrysler Financial is one of the most corrupt and disorganized company. Chrysler Financial Managers are majority of male chauvinists. They are lazy, arrogant, very racist, favoritism is wide spread and promotion is based on how is the best yes man of all. I am happy that world can see what I see everyday. Hope the government can see how these big greedy corporations having be operation for centuries.