Instead of helping to remake the American automobile industry, he is helping to create a new global auotmotive powerhouse. Only problem is that new global powerhouse is an Italian company. Congratulations, Mr. President. You successfully sold off the assets of an American company (for nothing but small car technology in exchange) and paid off your political contributors, the United Auto Workers (UAW spent $5MM to elect Obama). You are doing a great job so far. In fact, Fiat is planning to buy a majority stake in Opel, GM’s European division. This has the potential to accomplish Fiat’s goals of restructuring and becoming a global powerhouse. When the dust settles, besides strengthening Fiat, I really believe that Obama will only have two other accomplishments from his dealmaking:
- A declining and substantially weaker U.S. auto industry which is redesigned to leave the UAW with the maximum influence possible.
- The push of smaller cars on Americans will only intensify.
