BU Now » Chrysler

Chrysler sale to Fiat set

Dick Taffe — Wed, 10 Jun 2009 13:21:00 +0000

With the Supreme Court declining to hear a creditors’ challenge to it, Fiat is set to purchase most of Chrysler’s assets which will lead the Italian automaker deeply into the American market. School of Management Dean Louis Lataif, the former head of Ford Motors in Europe, can discuss the big-picture impact of the deal.

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Chrysler sale in legal limbo

Dick Taffe — Tue, 09 Jun 2009 13:51:31 +0000

Chrysler’s sale to Fiat is in the hands of the Supreme Court which issued a stay while it considers hearing a creditor’s appeal of the deal. School of Management Professor Israel Shaked, an M&A and bankruptcy expert, can discuss what could happen next.

Contact Israel Shaked, 617-353-2665, shaked@bu.edu

New role for U.A.W.

Dick Taffe — Tue, 02 Jun 2009 12:40:05 +0000

Now the major stakes in both General Motors and Chrysler, the United Auto Workers finds itself in an unusual dual role as both the major labor union in the automotive industry and a part owner. School of Management economist David Weil, a labor-relations expert, can discuss this dilemma/opportunity.

Contact David Weil, 617-353-4615, davweil@bu.edu

GM files for bankruptcy

Dick Taffe — Mon, 01 Jun 2009 13:15:32 +0000

It’s official: Industy icon General Motors has filed for bankruptcy (as Chrysler prepares to emerge from it). Former Ford Motors executive Louis Lataif, now dean of the BU School of Management, can put the upheavals into context.

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Bankruptcy for GM?

Dick Taffe — Fri, 22 May 2009 14:27:52 +0000

Speculation is rampant that the U.S. government will force General Moters into bankruptcy as early as next week. This comes as the Obama administration plans to lift Chrysler out of bankruptcy, also as soon as next week. School of Management Dean Louis Lataif, a former Ford senior executive, can offer a big-picture perspective on the auto industry’s woes.

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Ford selling shares to avoid bankruptcy

Dick Taffe — Tue, 12 May 2009 14:05:16 +0000

Ford will offer 300 million common shares to shore up cash reserves, avoid a federal bailout, and keep it out of bankruptcy as its Detroit competitors GM and Chrysler struggle to restructure. School of Management Dean Louis Lataif, a former Ford executive, can offer strategic perspective on the move.

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Chrysler bankruptcy “unfortunate”

Dick Taffe — Thu, 30 Apr 2009 19:58:44 +0000

School of Management Dean Louis Lataif, a former Ford executive, says the bankruptcy of Chrysler shows it is difficult for the government to impose financial decisions on private enterprises.

“It’s unfortunate that Chrysler must go through bankruptcy. It seems clear that debt holders, who themselves must answer to their own investors, refused to take only half of what they would receive in a Chrysler liquidation, as the government was requesting. It’s another illustration that it’s difficult, if not impossible, for government to impose anti-market decisions.

“It would have been more defensible if the government would have served as a lender of last resort, granting significant bridge loans for the ailing auto makers. Those loans could have been granted with restrictive covenants that would have required concessions by all the participants — management, labor, debt holders, suppliers, and dealers.

“Then when the auto market inevitably rebounds from this credit crisis, the auto manufacturers would begin repaying the loans with interest, making the taxpayers whole. And the government would not have put itself into the business of running the auto companies — an approach that will assuredly prove to be untenable.”

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu