Thursday the Obama Administration brokered a deal to sell Chrysler to Fiat.
(Article from Thursday) Chrysler Will File for Bankruptcy, Official Says (Update3)
After reading the article on Thursday, here was my take:
Something smells fishy to me about this Fiat/Chrysler deal.
- The existing owner is willing to relinquish it’s interest.
- The government is going to manage a bankruptcy and give the good assets to Fiat.
- FDIC is going to guarantee the loans made by both Chrysler Financial and GMAC.
- The government is going to own part of the new company and is negotiating settlements with creditors
- Fiat will be introducing it’s line of small cars here in the U.S.
It seems as if the only reason they are doing any of this is to conform to the demands of Fiat. I guess it takes a foreign corporation to tell us what we need to do to save the company…conveniently including themselves as the white knight?
Why can’t the company go through the same bankruptcy restructuring process and emerge as an independent US firm?
Here is my guess to why this is happening:
Fiat is the only smart guy in the room, the only one with any ideas, and Obama, the unions, and Chrysler management all have tunnel deal vision.
And the main reason: Obama wants us all to drive small cars…in fact Fiat 500′s will work just fine. Here are a few pictures so you will recognize the model when you go to the dealership:
Used 
New 
New 
Next thing we know, Obama will be converting our American light commercial vehicle fleet to the Ape:
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