- Chrysler CEO Sergio Marchionne has apologized for using the word "shyster" to describe the high-interest, taxpayer-funded loans from the U.S. and Canadian governments that were used to bail out the automaker in 2009.
- The apology notes that "the two governments levied interest rates that, although appropriate at the time, are above current market conditions."
- Chrysler owes $5.8 billion to the U.S. government and $2.3 billion to the Canadian government at an average interest rate of 11 percent, according to the automaker.
AUBURN HILLS, Michigan — Chrysler CEO Sergio Marchionne has apologized for using the word "shyster" to describe the high-interest, taxpayer-funded loans from the U.S. and Canadian governments that were used to bail out the automaker in 2009.
"Yesterday, in responding to a question about Chrysler's government loans, I used a term in reference to the interest rate being charged on our government loans that has raised concerns," said Marchionne in a written statement posted on the Chrysler Web site on Saturday. "I regret the remark which I consider inappropriate."
Marchionne's comment came during a question-and-answer session after he made a speech on Friday before the National Automobile Dealers Association. In the speech, the Chrysler CEO discussed the possibility of merging Fiat and Chrysler. Afterwards, he told reporters: "I want to pay back the shyster loans first."
The New Dictionary of American Slang defines "shyster" as "a dishonest and contemptible lawyer or politician." It noted that the origin of the word is "unknown and hotly disputed.... Perhaps from the name of a Mr. Sheuster, a New York City lawyer of the early 1800s; perhaps from German Scheisse (s***); perhaps because prisoners were said and advised to fight shy of lawyers who frequented jails, especially the Tombs in New York City; perhaps from an earlier sense of shy (disreputable, not quite honest)," according to the dictionary.
Chrysler owes $5.8 billion to the U.S. government and $2.3 billion to the Canadian government at an average interest rate of 11 percent, according to the automaker.
"As the only parties willing to underwrite the risk associated with Chrysler's recovery plan, the two governments levied interest rates that, although appropriate at the time, are above current market conditions," said Marchionne in his apology. "This was done with the full support and understanding of the members of Chrysler Group LLC.
"Because of these changed market conditions as well as the improvements in our performance and outlook made possible through the support of the U.S. and Canadian governments, Chrysler intends to repay these loans in full at the earliest opportunity."
Inside Line says: Painful words for U.S. and Canadian taxpayers to hear, even with the take-back. — Anita Lienert, Correspondent
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andres3 says:
09:53 AM, 04/29/2011
If anything, the loans should have been 22% to both Chrysler and GM. GM got away with murder, doesn't mean it's right for Chrysler to receive the same golden parachute.
In fact, since when is the Gov't in the loan business. They need to keep their hands out of business and stop choosing winners and losers, because all that does is make the losers win and the winners lose.
pchang7 says:
10:34 AM, 02/08/2011
Chrysler is easily a higher risk than GM. Growing up in the South, I don't ever remember people arguing, should I get a Mercury or a Chrysler? It always has been Chevy or a Ford, when talking about domestic vehicles.
Also, do we seriously need to put Eminem, one of the most irresponsible whinos in America as the cover boy for a conservative brand as Chrysler? I thought you guys specialized in Town and Countrys? What is going on here? Just because it's Detroit, doesn't mean you have to make Marshall your cover boy. What's next, the Insane Clown Posse? Who is Chrysler trying to appeal to?
I'm glad the American car companies shut down shop on all the sister companies, which were identical in product line to the head branch. Did these automakers think they could get away with the same renditions over and over again?
Every American car company is more worried about giving people jobs instead of making a quality product. They need to send some representatives to car companies like Volvo (Sweden), and BMW (Germany) to see how things should be done.
lostboyz says:
03:24 AM, 02/08/2011
@accordguy0325, ummm they did go bankrupt. How do you think we got here?
ambee514 says:
07:51 PM, 02/07/2011
I would have rather he did not apologize. I am sick of hollow apologies from people and companies. I wish people would stand up and take actual responsability for their actions. I have more respect someone who acknologise and stands up for up for their decisions more then someone give a hollow apology.
However I still want to get the 500
tbone85 says:
06:30 PM, 02/07/2011
Whatever. There are several hundred thousand people still working in this country who otherwise would not be. Both companies appear to be taking reasonably correct steps from a product and cost standpoint. When the money is repaid I have no problem with it. All these philosophical purists from both isles can go pound salt. People need to work in this country, the debaters can run their mouths all they want.
Chrysler executives whining about the rate need to go talk to people who've defaulted on a mortgage about what kind of security they are being asked to provide in order to borrow again. If it's a terribly deal, get private money tomorrow and close out the obligation--just stuff the whining.
accordguy0325 says:
04:34 PM, 02/07/2011
Chrysler and GM should have went out of business- or at the very least declared bankruptcy and left the Government and the taxpayers out of the equation. What a colossal rip off !!!
tdiluv says:
03:44 PM, 02/07/2011
SERGIO,you never heard of PT BARNUM ?
jays83gsl says:
01:29 PM, 02/07/2011
When a Sicilian calls someone out as a shyster, it's probably true.
throwback says:
11:51 AM, 02/07/2011
I don't recall anyone holding a gun to his head and forcing him to buy into Chrysler. If the deal was so bad he should have walked away.
e90_m3 says:
11:11 AM, 02/07/2011
He from the land of Mafioso calling these loans "shyster".... ROFL
What's next? Telling Bernanke to lower the rates or he'll be swimmin' with the fishes?