It would appear, as I predicted, Chrysler for sure and GM possibly, are an endless money pit into which we can throw money and lose or stop throwing money and lose. Oh joy. It seems the government has realized the automakers have no viable plan and it would behoove us to stop with the drunken spending spree and take a look around. Alas, even with this tiny bit of common sense on the surface, the truth is underneath , now we have an additional foundation beam for socialism being laid and a crisis not going unused.
Suddenly, it is acceptable for Chrysler to fail. In their ever expanding role, government is now the definitive authority in a car makers ability to continue and HOW that continuation will occur. In addition, while we were sleeping, Consumer Reports became the benchmark by which we now measure viability. If Consumer Reports doesn't like you, government won't help you. Well, for craps sake why didn't they look there 6 months ago!! Was Washington unaware Consumer Reports existed until yesterday? If they had, we would be $4 billion dollars richer today. Hell, they could have called and asked me. Chrysler has been in and out of the crapper for my entire life-I live in St. Louis-I have been well aware of their true sustainability since I was about 10.
In reference to Chrysler:
"Not only that, these sources said in no uncertain terms, its cars aren't very good either.In a conference call with reporters, a senior administration official cited several awards recently presented to General Motors cars, but could think of no industry recognition for Chrysler vehicles. "Chrysler has no cars that are recommended by Consumer Reports," the official said."
As I have made perfectly clear, I am not against letting these car companies go through Chapter 11. I am not for bailing them out. This does not feel like the truth to me though; this idea that Obama is putting his foot down and he has had enough. I don't like it. It all just seems like so much smoke and mirrors to me.
Here is what we are actually getting: The CEO of GM was "asked" to step down by the White House. You know Rick Wagoner, the man who has done more for GM than possibly any other CEO in GM's history. (Or at least in a very long time) They would have failed years ago if not for him. Interesting, still it seems they are looking for a sacrificial lamb. Also interesting? Wagoner is "asked" to step down; what about that crook Gettelfinger? Was he asked to step down after years of mismanagement and crooked politics?
No matter any of that, Washington- who has never run a business and can't run WASHINGTON-is now in control. The administration demanding cars are built smaller, with alternative forms of fuel that we do not yet have! This must be seen for what it really is-a power grab. They will rule this company by committee and if I had to guess it will be a committee of fools.
Then there is the less discussed demand of Chrysler. They have been told merge with Fiat or go bankrupt. Just a few short months ago they were too big to fail. Then the point is made that they are backed by a private investment company that won't even give them any money. Umm, just so you know this is no different than it was 6 months ago. You know, before we spent 4 billion on nothing. The most interesting tidbit of the whole thing? The merger with Fiat cannot move forward unless the government maintains the controlling interest. Now, you might say this is to protect their interest, namely the "loan" that was given. That looks like an excellent reason on paper, but I wonder how hard it will be to get them out once they're in there. I also wonder how much policy, production, and salary conditions they will impose. I wonder what demands they will make of Fiat. I wonder why anyone would get in bed with the government after what they did to AIG.
Finally, don't fool yourself; this power grab is not coincidental. Geithner is already grabbing for his. First go the financials, then goes manufacturing, who's next? Me? You? Oh, and GM will get the money in the end. They will get it because the Administration wants this stronghold.