TheDetroitBureau.com (TDB) reports that GM’s lame duck Car Czar is a Chrysler creditor. The size and nature of Bob Lutz’ claim against the other zombie automaker is not yet known. But I reckon the ex-ChryCo exec’s pensions and bennies got sucked into the black hole. (Hey, I did warn him.) In fact, Lutz is going for a C11 triple: Exide, Chrysler and GM. While we await the official Chrysler court docs, the list of Auburn Hills’ other creditors is long and revealing. Number one: you, the taxypayer, dwarfing the second largest creditor by some $9.42 billion. So large, in fact, it’s not even on the list. Which leaves chassis maker Ohio Module Mfg. Co. as the largest non-governmental creditor. Ad agency BBDO Detroit Incorporated clocks in at number two most owed, at $58,055,133.44. As TDB observes, “Who would have thunk it! Well maybe it’s like American beer, the advertising and promotion cost more that the production of the stuff inside the can. Still, this is more money owed for advertising than steel, since U.S. Steel Corporation is owed only $16,182,772, as of April 30.” Looks like the spinmeisters got spun.
Don’t cry for big Bob…..generally executives at large corporations have a myriad of pension benefits….
the most important benefit (the main pension plan for exectutives) probably has a provisions that automatically kicks the assets of the pension plan into a bankruptcy-proof trust (pre-bankruptcy), guaranteeing pay-outs to the vested executives.
What Lutz probably will file a claim for is random ancillary retirement benefits that executives usually get (paid office space, secretary, travel expenses, etc. and whatever minor fraction of his pension that wasn’t kicked into the trust.)
“the advertising and promotion cost more that the production of the stuff inside the can”
That would explain a lot.
C11 triple: Exide, Chrysler and GM
So that’s a triple-Lutz!
I can’t wait to see Maximum Bob in one of those sparkly skating outfits…
Mr. Sparky Wins the thread!!! :D
I’m trying to figure out how these three great companys could go under, if only there was a common denominator between these 3 bankrupt companys…Exide, Chrysler and GM , i just can’t connect the companys to a common problem/person…
@ KGrGunMan
Common denominator! Ha! Well done KGrGunMan, beat me too it.
I don’t think Maxi-Bob is worried about paying his bills.
Bob has probably done more than any other person to DESTROY the American car industry. The only healthy car company, Ford, didn’t make use of Bob’s questionable “services”. It’s almost as if a dark cloud of destruction follows Bob around, smothering and killing any company he’s associated with.
Bob’s car, the “viper”, is perhaps one of the worst examples of gas-guzzling stupidity.
Bob presided over the bankruptcy of Exide, was associated with the bankruptcy of Chrysler, and was highly involved in the “decisionmaking” that bankrupted GM.
Remember Bob claiming that buying Nissan would be like throwing money into the sea? Now, Nissan can buy GM with pocket change, thanks to Lutz.