Chrysler finally gets $4 billion govt loan
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The auto industry bailout is still front page news as I write this.
The whole country is focused on the loan guarantees. I hope, by the time you get this, Washington will have supported our industry, and there will be plans for all stakeholders to work on further solutions.
Last month we sent more than 1700 emails to our legislators. Congratulations. So far I’ve seen some responses from senators. They all speak about the bailout package. But they do not discuss our concerns that white-collar benefits need to be restored as part of the assistance package.
Next month Chris Dyrda and I are going to Washington for a National Retiree Legislative Network meeting. We also plan to visit our legislators and convey our message that white collar retiree benefits need to be protected and cancelled benefits should be restored. We also want to insure that our pensions are protected.
With the holiday season upon us, there is probably little that will occur until after the inauguration of the new president in late January. If we need you to write legislators or take other action, we will let you know.
I’d like to thank everyone who has volunteered to help the NCRO in the past 7 months. We now have more than 800 members, and have aggressive growth plans. We are a grass roots organization that depends on the participation of its members for success. Soon we will be asking members to again assist us in recruiting.
I wish you all a Merry Christmas and happy holiday season.
Chuck Austin, NCRO President
JOIN THE NATIONAL CHRYSLER RETIREES ORGANIZATION
As you all know, Chrysler non-union retirees and workers had no real means to communicate with Chrysler on retiree benefit issues. Further, there currently was no way for non-union retirees to communicate with each other or to speak as one voice with the company.
Retirees have continued to support the company and have trusted management. We have relied on the company to provide the benefits we all earned while we were active employees. Unfortunately times have changed dramatically, as has the company's commitment to maintain retiree benefits.
After the termination of health insurance and life insurance benefits, several retirees joined together to organize a non-union retiree organization to present a united front to the company. The NCRO was formed in May 2008 with the goals to preserve retiree benefits, improve communication, and foster fellowship among retirees.
However, it is clear a few people can not take on all the responsibilities associated with developing and managing a retiree organization. Therefore, we ask that you join the NCRO and ask your fellow retirees to join also by clicking here.
NEWS RELEASES, STUDIES & NOTICES
January 4,2009
Glint of hope for auto industry? by Jewel Gopwani, Free Press Business Writer, Jan. 3, 2009. Despite dire auto sales predictions for 2009 -- some analysts are forecasting the worst year in more than two decades -- there are glimmers of hope... continued here ==> More stability seen after tough 1st half
Plenty of uncertainty ahead for automakers by Mark Phelan, Free Press Columnist, Jan. 4, 2009. Forget about predictions. We're in uncharted territory as 2009 begins. Anybody who tells you that a year ago he or she predicted that... continued here ==> Here are some of the big questions the new year will bring.
January 2,2009
The Big Three may perish through people's lack of knowledge By Roger Simmermaker Jan. 1, 2009. Never before has their been such a large national debate over an issue so critical to the American economy... continued here ==> Senator Christopher Dodd (D-CT) claims Detroit’s wounds “are largely self-inflicted.”
U.S. Treasury sets guidelines for autos rescue plan By David Lawder Reuters Dec. 31, 2008. Clarifying its financial aid program for the domestic auto industry, the U.S. Treasury on Wednesday... continued here ==> The Treasury said guidelines for its Automotive Industry Financing Program will apply to...
December 2008
Foreign Automakers in the U.S. Cut Back By CLIFFORD KRAUSS NY Times Dec 22, 2008. Sales are off and production is down, so workers at the Toyota Tundra truck factory here are taking classes... continued here ==> “We’d rather be building trucks,”
UAW Supports Loans, Disappointed by Conditions WXYZ-TV News. United Auto Workers President Ron Gettelfinger has issued a statement in support of the bridge loans... continued here ==> However, Gettelfinger says he is disappointed by some of the conditions put on the workers.
Ten Things The Taxpayer Should Know About The U.S. Auto Industry Now That They Own It By David Kiley; BusinessWeek Dec 19, 2008 As of the New Year, taxpayers will pretty much own General Motors, as well as Chrysler... continued here==> Here's our Detroit team to sort out the fact from the hot air...
Rescue to Give Obama Enormous Influence Over Industry By Jonathan Weisman WSJ Dec 19, 2008. In one of his last acts as president, George W. Bush on Friday handed his successor an enormous new role ... continues here==> The Obama administration will inherit stakes and warrants in...
December 2008
How each senator voted on rescue bill FREE PRESS STAFF AND WIRE REPORTS • Dec 11, 2008 The 52-35 roll call by which opponents on Thursday prevented the Senate from considering a $14 billion rescu... continued here ==> Supporters of the rescue needed 60 votes to advance it.
The US car industry bailout explained From Times Online Dec 12, 2008 The Big Three American car manufacturers, all based in Detroit, warned they would collapse imminently unless Washington stepped in with a bailout worth $34 billion... continued here ==> What they wanted, why they failed and where it goes now
Hey, Southerners: Detroit 3 helped you to survive BY TOM WALSH • FREE PRESS COLUMNIST • Dec 12, 2008 When Hurricane Katrina slammed into Louisiana and Alabama on Aug. 29, 2005, the automobile companies of Detroit did not harrumph ... continued here ==> They didn't sit back and wait for New Orleans to submit a detailed plan
House Passes Bill to Ease Pension Crunch for Retirees, Companies By Nancy Trejos Washington Post Staff Writer Dec 11, 2008 The House of Representatives last night approved a bill that would provide relief... continued here ==> The bill stopped short of addressing so-called required minimum distributions for this year.
Bankruptcy Doesn't Equal Death by By DON BOUDREAUX Online WSJ Dec 11, 2008 The auto industry could use the process to get competitive... continued here ==> The Big Three, we are told, are "too big to be allowed to fail."
$73 an Hour: Adding It Up By DAVID LEONHARDT NY Times Dec 9, 2008 That figure — repeated on television and in newspapers as the average pay of a Big Three autoworker... continued here ==> has become a big symbol in the fight over what should happen to Detroit.
GM retiree launches anti-Shelby Web site Free Press staff and wire reports • Dec 10, 2008 A retired engineer from General Motors Corp. has launched a new Web site... continued here ==> aimed at Republican Sen. Richard Shelby and the state he represents in Congress, Alabama.
7 myths about Detroit automakers BY MARK PHELAN • FREE PRESS COLUMNIST • Dec. 5, 2008 The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations... continued here==> Here are seven myths about the companies
Why Detroit's Woes Are Bad For Toyota By Coco Masters Time Dec. 05, 2008 Nothing so cheers the soul of a hardened businessmen as the sight of a competitor on his knees. continued here==> Yet Japan's automakers are not celebrating — far from it.
NRLN Letters Urge Support For Auto Industry Retirees Read the NRLN's letter that was faxed to Christopher J. Dodd, Committee Chairman and the other 20 members of the Senate Committee NRLN Letters Urge Support For Auto Industry Retirees
The Truth About Auto Pensions By JIM MCTAGUE November 29, 2008 Barron's When the chief executives of the big three auto makers were in Washington last month ... continued here ==> The PBGC is an insurance company created by Congress to protect workers.
NCRO JOINS NRLN
Chrysler's action to cancel healthcare and insurance coverage for salaried retirees is a clear message that we must have new pension and healthcare legislation passed that protects our interests. Therefore, the NCRO is now an at-large member of the National Retiree Legislative Network.
The NRLN is a non-partisan, grassroots coalition of 23 retiree associations and individual members representing more than two million retired men and women seeking to preserve the retirement benefits they earned during their many years of employment. Their strength is in lobbying Congress in Washington, through messages from retirees to their elected officials, and retiree visits on home turf.
The NRLN, with its well-established base in Washington, D.C., has one mission, securing federal legislation that protects retirees' employer-sponsored pensions and healthcare benefits plus keeps Social Security and Medicare strong.
The NCRO fully supports the NRLN agenda of passing legislation to make corporations keep their pension and benefits promises to retirees. Like the other retiree associations affiliated with the NRLN, the NCRO will maintain its own identity while working with other retiree groups across all 50 states and Congressional Districts to create a better future for all of America's retirees.
I encourage you to go to the NRLN website to learn more about the NRLN. After reading about the NRLN, I hope you will decide to click on the link that will take you to the website page where you can sign up to become a member of the NRLN's Grassroots Network. If we help, we will be protecting ourselves.
Chuck Austin
President, NCRO
CDI's Available
The National Chrysler Retirement Organization (NCRO) has the ability to issue 25 Certain Designated Individual (CDI) control numbers to potential buyers within the U.S. This CDI number will allow friends and neighbors to obtain a price on most new Chrysler vehicles that is 4-5% below factory invoice (employee price + $200). The Friends program, which we can use up to six times a year, provides for a price that is 1% below factory invoice.
In order for the CDI numbers to be issued, information must be provided to Dick Cassle
using the applications that you can obtain by clicking here.
Because we have a limited quantity of CDI numbers (available through the end of the year or until they are all distributed) they will only be issued to NCRO members for imminent sale/lease.
Let's show our company how we can support them!
Dick Cassle
cassledick@aol.com
CHRYSLER RETIREES, NCRO & CHRYSLER NEWS
January 4,2009
NCRO Breakfast Meeting Announcement
The National Chrysler Retirement Organization is holding it’s third Quarterly Breakfast Meeting:
Time: Wednesday, January 21,2009 10:00 a.m.
Place: MSU Management Education Center on Square Lake Road just East of Crooks in Troy, MI. Directions to the MEC
Cost: $15 at the door for NCRO members – bring a copy of this notice for proof of membership. $20 for non-members -- non-members can sign up for membership at the door ($25 membership).
Agenda:
Breakfast and Social Time – (30 min)
Welcome and Introductions – Chris Dyrda VP NCRO (5 min)
NCRO News and Information – Chuck Austin, NCRO President (10 min)
Washington Events – Chuck Austin, Chris Dyrda, and Bob Foresta (20 min)
The Future of Health Care Insurance in Michigan – BCBS TBA (20 min)
‘Pension Plans’ Funding and Security– John Glotzbach (20 min)
Q & A – (20 min)
Adjourn
Other Items:
A full sit down breakfast will be served.
The meeting is an opportunity to meet with former coworkers and share experiences.
Seating is limited to 300 people. Please RSVP to elizabeth2229@comcast.net (810) 513-1105 if and only if you plan on attending. We pay for all who plan to attend so please only RSVP if you are certain you can attend. Please RSVP by 1-10-09 More information on NCRO can be found on www.ncro.org
Non-members are welcome, so invite your retired friends and encourage them to join.
January 2,2009
Chrysler gets $4 billion govt loan Reuters Jan. 2, 2009 8:15pm. Chrysler LLC said on Friday it has received an initial $4 billion emergency loan from the government... continued here ==> "This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.
Chrysler Faces Criticism for Full-Page 'Thank You' Ads By Judson Berger FOXNews.com Dec. 29, 2008. Chrysler is facing a backlash from taxpayers and conservative groups after the ailing auto company took out a series of full-page newspaper ads... continued here ==> Critics say the company, which is expected to receive about $4 billion of that bailout money...
Chrysler's flimsy claim to a government bailout The Boston Globe Jan.2, 2009. When President Bush announced an emergency loan to General Motors and Chrysler last month, the assumption was that both companies deserved this federal support... continued here ==> But Chrysler's claim to the bailout funds is far flimsier than it was 30 years ago.
December 2008
We have received several inquiries on the Chrysler pension plans. Here's what NCRO knows and is doing on pension funding.
1. Because pension checks are our biggest income, we view this subject as our most important topic.
2. Chrysler pays insurance to the PBGC for the basic, SERP and ESERP plans. So they should protected if Chrysler declares bankruptcy. We are not sure if the protection dollar limits apply to our pension checks total, or to the the individual plans.
3. The recently published summaries show the pension plans were fully funded on 12/31/07. We hare verbal hearsay from Personnel that they are still close to being fully funded now. We asked Chrysler to give us more info, but have no response from them.
4. If the plans are fully funded when Chrysler declares bankruptcy, everyone gets their full pension.
5. Our web site has past pension data, and the PBGC chart on age versus benefits if the plans are not fully funded. Early retirees get much less that retirees above 65. The age chart is based on the retiree's age when the pension plan reverts to the PBGC.
6. Several retirees have called the PBGC asking for clarification. The PBGC will not answer specific questions on a pension plan until it gains custody of the plan. See the attached file for one retiree's findings.
7. We have ordered full details of all the pension plans from Chrysler so we can study them.
8. John Glotzbach is also gathering pension data wnd will be a main speaker at the January Detroit meeting. We hope to video that meeting so we can put it out to all members.
9. The president of the NRLN, Bill Kaedereit, also has expertise analyzing pension plans, and has volunteered to assist me once we get details.
10. The NRLN has identified 3 abuses that can apply to pension plans, ans is urging legislators to pass a law to prevent them. We support the law.
11. We mention pensions in our recruiting literature, as a reason to join the NCRO.
Here is a transcript of an exchange between a Chrysler retiree and a person employed by the PBGC ==> NCRO Correspondence withPBGC 12-08.pdf
Pension Security
We have had numerous questions about the security of our pensions. Our web site will have the latest information available. Pension fund summary data for 2007 was just published on 12-12. There were 33 different plans. We are requesting full reports on every plan that applies to salaried retirees.
The summary indicates that our pension plans were fully funded on 12-31-07. Based on verbal information, we have been told the pension plans are close to being fully funded, even with the recent market drop. But, we do not know for sure and will continue to search for more information. We plan to ask the “auto czar,” if there is one, to require that the companies publish the current status of the pension plans as part of the loan guarantee program.
If Chrysler goes bankrupt, the Pension Benefit Guarantee Corporation (PBGC) takes control of the funds. The PBGC then determines the funding levels of each plan. If they are fully funded, everyone receives their pension. If the funds are not fully funded, retirees receive reduced money, based on their age when the PBGC takes over. This age information is on our web site under the Chrysler Benefits tab, then click on Pensions. Early retirees need to check the data, since they receive substantially less than older retirees.
ESD - The Engineering Society of Detroit is offering free Membership to Chrysler people who were downsized in November and December. ESD offers job banks, job fairs and information on alternative careers for our members who want to continue working. Please see these two flyers for more information ==> ESD Chrysler-Benefits-App v1.pdf and Alt Career Flyer 2.pdf
Uncertainty Grows Over Parent’s Role in Chrysler by Bill Vlasic NY Times Dec 22 2008. Unlike General Motors, Chrysler has provided few specifics on how it plans to overhaul its operations after receiving federal loans... continued here ==> Cerberus raised questions about whether it would remain an investor if Chrysler survives.
Historic "Chrysler" Service Awards Retirees that are interested in purchasing Historic "Chrysler" Service Awards (with diamonds and sapphires) should contact Julie McIntosh at 248-576-3044 or Karen Reichel at 248-576-2938 to reserve one. Note: Checks must be made out to United Way for Southeastern Michigan. click here for details
Benefits Express
We have received numerous complaints about Benefits Express, and are sending them on to Chrysler. They don’t respond to us. But, at least, we keep trying. If you have comments, please post your comments and questions at: blog.ncro.org
What is a blog? In simple terms, a blog is a web site, where you write stuff on an ongoing basis." And with that said, the NCRO would like to announce that we have our own blog site: blog.ncro.org
Feel free to vent, post rumors, commentary, links, ask questions, etc. about anything you'd like to share with the group. Please refrain from asking specific questions about the NCRO that would require a response from the Directors or board members. Any questions, suggestions or complaints NCRO specific should be passed along by phone or to E-mail Address: NChryslerRO@gmail.com
HELP NEEDED
We continue to need help in Legal and accounting
The NCRO is an organization of volunteers. Right now a few dedicated workers are doing all the work. Please volunteer to help us. If you can help us, please contact us at NChryslerRO@gmail.com, or contact Chuck Austin at 989-595-6216.
