China Car Forums banner
1 - 2 of 2 Posts

·
Registered
Joined
·
176 Posts
neko said:
Doesn't Chrysler have unfunded pension liabilities somewhere around $30 billion USD? So how can its pension assets be overfunded?
Good, Neko. Everyone on the planet seems to keep forgetting why this company simply WILL NOT be purchased for cash - Each piece of the pie has enormous value - Dodge trucks alone is a fantastic asset - but the entire pie is poisoned with the un-funded pension, entitlements, and union.

I said it a month ago, I say it again - this company will be purchased by a Chinese company, immediately put into bankruptcy to blow off the unions & pensions, then either re-emerge as a whole or be parted out then.

The post above reminds me of when someone niave looks at the assets of a company (say Chrysler at 20 billion) and says "Wow, the company is worth 20 billion!"

Uh, No. There are two sides to a balance sheet, assets and liabilities. If a company has 40 gazzilion dollars in cash under the mattress, yet it has 41 gazzilion dollars in liabilities, the company is less than worthless.

GM looking to purchase Chrysler? Please. You cannot expand out of losses by purchasing another company with losses. GM, Chrysler, etc. should be embracing winners in other countries to boost themselves
 

·
Registered
Joined
·
176 Posts
Real_I_Hate_China said:
If you are GM, then you don't need to pay cash.

If you are Chinese, then you better come up with billions in cash, as Daimler doesn't take Chery stocks as payment....

You have to be consistent, RIHC. It was you that stated anyone/everyone would need 5 billion, I was the one who said money would never change hands. I do respect your posts, seriously, but don't waffle on things you previously said.

Real_I_Hate_China said:
SInce Daimler is not asking for cash, why not...
Simple economics - If you have two companies that lose money seperately, putting them together will just make a larger loser. Obviously more complicated than that. And you cannot say they could combine and consolidate - unions, pensions, liabilities just won't go away.
 
1 - 2 of 2 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top