The plan cobbled together by the Obama team to save Chrysler centers around paying off the unions for their support of the Democrats and producing future profits for Chrysler by turning to the Europeans to design new cars. Wow! The UAW gets half the company. One might well ask why this should be. At best, the union has an unsecured claim when compared to the bondholders. These bondholders are to get about 33 cents on the dollar and no stock. The unions claim is not much larger than the bondholders and they get half the new company. Seems equitable -- right. After all, they are unions and they support the Dems.
Better still is the alliance with Fiat so that Chrysler can have a European design. Obviously, the Obama folks are taken with the sophistication and knowledge of the Europeans. Ha! Have any of the geniuses ever driven a Fiat? I doubt it. My guess is that they do not even remember that Fiat had to pull out of the US market because its cars would not sell here. Oh well, when Chrysler fails due to poor product design in a few years, Obama can just blame it on Bush.
There is a reason why car people should run car companies rather than having the government do it. Chrysler is just a good example of this.
I can't wait to see how Obama arranges for GM to start making Yugos.
the truth is that Ford is looking more and more like a buy.
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