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Chrysler says Indiana treasurer’s demands would spur liquidation


To SAMc: I agree Chrysler was mismanaged, by Daimler and by Bob Eaton, who supposedly merged (really gave to) Chrysler with Daimler. Daimler was still trying to blame Chrysler for their own problems after they sold it to Cerberus. Daimler only wanted Chrysler for their billions in cash that they had built up. The cash reserve was good management. They quickly burned through that with acquisitions and supporting “mother Daimler”. Cerberus at least tried to stop the bleeding (IE stopped the overpriced and under achieving Getrag/Daimler dual clutch trans … Getrag kept raising the price and it didn’t perform as promised) before the bad economy hit ALL the automakers. If you notice, Toyota lost the most money of all the automakers in the last quarter reporting. Also, look at Toyota, Nissan, & other Japanese manufacturer’s automobiles and trucks size & mileage ratings. They quickly followed the American automakers in size (getting larger) and in many cases get worse mileage than the American vehicles they were trying to compete with. This is because they were going for what the market wanted. By going through this special bankruptcy it is surely saving more of the assets for these funds in question than by liquidating. Especially, when one considers it is really only over a couple million dollars and less than one percent of these funds. From a percentage aspect, good fund managers offset a one percent drop in one stock by selling/buying other(s). Heck, the market fluctuates that much during the course of many days, and recovers.



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