[tw]

From the Washington Post of 20 Apr 2009:

Chrysler Financial Refused Government Loan Over Limits on Executive Pay
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.

This cannot be true. After all, everyone knows their problems are only traceable to greedy and lazy union workers, unfair Japanese competition, tax laws, environmental laws, the education system ...

Or maybe the only problem has always been overpaid executive who know the purpose of a corporation is its profits - especially top management profits.

Reason why Chrysler is all but gone - its executives. But again, a fundamental fact is demonstrated. 85% of all problems are directly traceable to top management. That increases to 99% when management casts blame elsewhere.

They would rather destroy the company than take reduced pay packages more in line with what they deserve.

Nardelli demanded $200million to leave Home Depot - to save the company. Now he is doing same to Chrysler? Of course. He is a business school graduate. He has no idea how cars work or how a product is designed. But he knows what is most important - his pay package.

Screw America is taught in the business schools. No wonder military academies do not graduate business school majors. They need people who are responsible, informed, and understand who is the reason for failure.

Chrysler has so been destroyed by MBA management for so long that even Fiat cannot find enough worth buying. Especially when getting rid of management will cost them how many more hundreds of $million? Only part of Chrysler that has any value is its dealer network. Chrysler does not even have one new product in the innovation pipeline – as any good business school graduate would do to cut costs. Chrysler is gone.

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.

Lying once worked when a president routinely protected defective and anti-American companies (ie big steel, First Energy, etc). Those days are over.

Obama administration and Congress have toughened the rules.
... 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.