U.S. taxpayers likely lost $1.3 billion in the government bailout of Chrysler, the Treasury Department announced Thursday!

CNN Money: U.S. loses $1.3 billion in exiting Chrysler

Shoddy Reporting Concerning Closed Chrysler Dealers:What the TARP Inspector General Report Does NOT Say.

From Leo Donofrio:

The TARP Inspector General’s office, SIGTARP, recently released a report entitled, “Factors Effecting The Decision of General Motors and Chrysler To Reduce Their Dealership Networks“. This report set off a firestorm of shoddy reporting, which, if left unchecked, will confuse those familiar with the Chrysler Dealers’ pending litigation on appeal in federal district court. This blog posting has been designed to educate the public as to the truth of the SIGTARP Report.

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One of America's best kept secrets

Subject: Hourly Labor Cost of Big Three Unions

According to Forbes: Labor cost per hour, wages and benefits for hourly workers.

Ford: $70.51 ($141,020 per year)

GM: $73.26 ($146,520 per year)

Chrysler: $75.86 ($151,720 per year)

Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)

According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).

Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D., and 52.6% more than the average worker at Toyota, Honda or Nissan.

Many industry analysts say the Detroit Three, must be on par with Toyota and Honda to survive. This year's contract, they say, must be "transformational" in reducing pension and health care costs.

What would "transformational" mean? One way to think about "transformational" would mean that UAW workers, most with a high school diploma, would have to accept compensation equal to that of the average university professor with a PhD.

Then there's the "Job Bank" ... When a D3 (Detroit 3 carmaker) lays an employee off, that employee continues to receive all benefits - medical, retirement, etc., etc., PLUS an hourly wage of $31/hour.

Here's a typical story....

Ken Pool is making good money. On weekdays, he shows up at 7 a.m. at Ford Motor Co.'s Michigan Truck Plant in Wayne, signs in, and then starts working -- on a crossword puzzle. Pool hates the monotony, but the pay is good: more than $31 an hour, plus benefits. "We just go in and play crossword puzzles, watch videos that someone brings in or read the newspaper," he says. "Otherwise, I just sit."

Pool is one of more than 12,000 American autoworkers who, instead of installing windshields or bending sheet metal, spend their days counting the hours in a jobs bank set up by Detroit automakers as demanded by the United Auto Workers Union - UAW - as part of an extraordinary job security agreement.

Now the D3 wants Joe Taxpayer to pick up this tab in a $25 Billion bailout package - soon to be increased to $45 Billion if Nancy Pelosi and Hillary Clinton have their way.

Not a good deal for us.... How about Chapter 11 - and getting rid of these ridiculous union contracts?

DOES ANYONE KNOW HOW A PERSON MAKING $12.00 TO $15.00 AN HOUR CAN PURCHASE A VEHICLE BUILT BY SOMEONE MAKING $70.00+ PER HOUR?

Dealergate: The REAL truth

Addendum: We almost overlooked one of the most incredible chapters in the story so far. Almost a month ago, even before the closing Chrysler dealers got their notices, the company said that it was looking for new dealers to replace its “underperforming” dealers in small markets. Underperforming, like the many Five Star dealers (previously touted by Chrysler as its very best agencies) that are being closed. Before the pinks slips were even printed. You can’t make this stuff up...

Read the whole thing

Bankrupt companies making 39 mpg autos. Are we nuts?

We wish these folks luck "working together" with the Obama auto-design team. One thing seems certain by 2016: Taxpayers will be paying Detroit to make the cars Americans don't want, and then they will pay again either through (trust us) a gas tax or with a purchase subsidy. Even the French must think we're nuts.

Car Crazy

[USED CARS WILL BECOME THE HOT ITEM]

Letter to the editor...from a man whose family business was just stolen from him by our government

Listen, everybody: This is obscene. This is wrong. This man's life was just stolen from him and his family. I am enraged and I know that if we don't find a way to stop Obama and his cohorts, all will be lost forever in America.

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.


We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.


I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.


On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.


Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.


HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?


THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY


This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.


This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.


HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?


I beseech your help, and look forward to your reply. Thank you.


Sincerely,

George C. Joseph
President & Owner
Sunshine Dodge-Isuzu

American Thinker, May 19, 2009
Letter from a Dodge dealer

Lauria allegations of threats corroborated

Business Insider reports that more than one Chrysler senior creditor has corroborated Thomas Lauria’s allegation that the Obama administration threatened them with public attacks if they didn’t surrender their contractual rights. One of their sources says that the Obama team comprises some of the worst “ends justify the means” people he’s ever encountered...

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Great news: Tom Lauria and Andrew McCarthy fight back!

Forward and/or post these everywhere:

Obama - Resistance Is Starting -- Part 1 -- Tom Lauria and The Chrysler Takeover - www.nevilleawards.com/obama_resist_1.shtml

Obama - Resistance Is Starting -- Part 2 -- Andrew McCarthy Refuses to Shill for Obama Torture Debate - www.nevilleawards.com/obama_resist_2.shtml

"To my knowledge, there is no precedent for this sort of arrogant lawlessness in American history..."

On Thursday, I wrote about the banana republic capitalism that we are experiencing under the Obama administration. In connection with the Chrysler bankruptcy, Obama, ignoring laws that assign priority to secured creditors, has tried to bully lenders into abandoning their legal rights in favor of the United Auto Workers Union. To my knowledge, there is no precedent for this sort of arrogant lawlessness in American history. (Germany, Italy and Argentina are familiar with it.) Now, bankruptcy lawyer Tom Lauria adds more:

Read the rest along with an important UPDATE!

"One of my clients was directly threatened by the White House..."

May 1) - Frank talks with Tom Lauria, bankruptcy attorney at White & Case, who represents a group of lenders that object to the Chrysler sale.

So: the White House "Press Corps" is now being used as a militaristic arm of the White House!

Folks, we're going to be a banana republic if you do not wake up and start fighting back.