A long time ago, I was told a little phrase which stuck with me: “Sometimes, you may be done with history, but history isn’t done with you.” It made a lot of sense to me. Just because you’ve finished with something doesn’t mean it’s over for the other party. Seems like Daimler and Cerberus are learning this the hard way.
Associated Press (via Google News) is reporting that more than 450 former Chrysler executives, including turnaround artiste Lee Iacocca, are suing Daimler and Cerberus. The suits say in the suit that they lost $100m in pensions in Chrysler’s bankruptcy. Sheldon Miller, one of the lawyers working on the case, said that supplemental pensions were not transferred to the new Chrysler during its bankruptcy and “as a result, each of the plaintiffs lost large percentages of their earned retirement pensions.” Hmmm, when rank and file members lose benefits, it’s collateral damage to help the company stay strong. When executives lose benefits, it’s lawsuit time.
$100m needs deep pockets, so the boys in Stuttgart, Daimler, were not forgotten in this affair. The lawsuit mentions that Daimler failed to protect the pensions properly. They could have, as posited in the suit, converted the pensions into annuities to protect them. Why does the suit say this? Because Daimler did do this in 2005 for active executives when Chrysler started showing failings.
However, this suit is retrospective. It is not being filed against “New” Chrysler. It’s filed againt Daimler and Cerberus. Suddenly, Mr Miller turned into a “bailout” cheerleader. “Everybody involved in this suit loves that company (“New Chrysler”) and like everybody else wants to see it succeed,” said Mr Miller, “The plaintiffs in our case are trying to assure that there won’t be similar hardships for Chrysler’s current employees, many of whom worked for and with the people involved in this suit.” OK, a couple of problems with this statement.
1. They’re only doing this lawsuit so there won’t be similar hardships for current Chrysler employees? So, it’s got nothing to do with the $100m they’re trying to claim back?
2. “The plaintiffs in our case are trying to assure that there won’t be similar hardships for Chrysler’s current employees…” “Similar hardships”? Does he think that a certain company may go bankrupt again? Nah, of course not! I’ve got to stop reading TTAC. I’m becoming too cynical…am I?
The switch from neutral to first-person voice at “OK, a couple of problems” was kinda jarring.
Now you big dogs know what it’s like when the little guy loses his pension. Suck it up and find another job, slacker!
I am glad that someone is going after these bast**ds. The absolutely shameful treatment of what was once a great company needs to be addressed, even if only in this small way. For years I have railed against the treatment Chrysler received from both Daimler and Cerberus, while they raped and pillaged their way through this enterprise, all without any real consequences, thanks to media silence on the subject, TTAC included. I’d like to see the workers who were screwed do exactly the same thing. Daimler and Cerberus should not be allowed to promulgate such shoddy business practice without some sort of penalty. I have ZERO sympathy for these greed merchants.
For years I have railed against the treatment Chrysler received from both Daimler and Cerberus, while they raped and pillaged their way through this enterprise, all without any real consequences, thanks to media silence on the subject, TTAC included.
I’d strongly encourage you to go back and read some of TTAC’s articles regarding Cerberus (a/k/a, “Satan’s three-headed dog”) circa 2007 – 2008. Prior to that, there were a number of articles regarding a lack of leadership on the part of Daimler.
Perhaps the mainstream media was silent, but TTAC? Hardly.
Your comment that Chrysler was “once a great company” is entirely a subjective statement. A company that makes about the shoddiest cars in the developed world; and that’s before the merger with Daimler-Benz.
Mhadi,
Your comment that Chrysler “makes about the shoddiest cars in the developed world; and that’s before the merger with Daimler-Benz” is also subjective. Actually according to JD Powers IQS and VDS from the 90’s, it’s completely wrong. By every measure Chrysler was doing great in the 90’s. Profit – check. Strong sales and market share – check. Well received designs by the public and the auto media – check. LARGE cash reserves (the real reason Daimler wanted Chrysler) – check. Great relations with suppliers and dealers – check. Now that Chrysler is out form under it’s oppressors we are seeing glimmers of the old Chrysler. Ram, Challenger, Grand Cherokee and hopefully more to come.
@BuzzDog, thanks for the heads up on this, I wasn’t a TTAC reader back then so was unaware of its articles. My ongoing anger at the shoddy treatment of Chrysler tends to overwhelm my good sense sometimes. (but I still want to get those sob’s). @mhadi, you sound like a prius or tata owner, just another victim of media brainwashing. Do some real reading before you bless us with your (mostly) uninformed opinion.
I worked at a Chrysler-Jeep store in the late-90s. All products on the lot were pre-Daimler.
Chrysler had style then, and Chrysler had sales. With the exception of holdover ’97 Eagles, there really wasn’t a dog on the lot. Alas, initial quality was OK (and just OK) but durability was still a glaring weak point. It’s only gotten worse in all respects since then.
Won’t fly. Execs must be at risk in a bankruptcy in their uninsured plan.