Now that Chrysler and GM have submitted their “viability plans,” the Congressional corridors of power have been eerily silent on the subject. Oh sure, the White House Press secretary said something patriotic about preserving this, that and the other thing. And the presidential clusterfuck committee charged with sorting this shit out is meeting even as I obscene. But I was expecteding a lot more public political positioning on Motown’s second round of trough snuffling. Never mind. I reckon Chrysler and GM will get their/our money and soldier on. I also predict the feds will direct Cerberus to toss the keys to Chrysler to GM. Political expediency—the need not to “throw in the towel” on any aspect of the U.S. economy—makes ChryCo inviolate. So why not lump all of Detroit’s “troubled assets” together and create a federally controlled—sorry, “supervised” American Leyland? It’s such a horrendous idea on so many levels it just has to happen. Or not. What say you?
At this point, we’re getting the worst of both a command economy and private market. The government is intervening in exactly the worst ways possible, propping up failing private firms, paying private-market salaries and private-market costs, with no recourse or oversight.
I’d much rather see:
(1) Chrysler in particular but also GM be told to get lost
(2) Full on government takeover. You may disagree with this, but I’d be interested to hear someone argue that it’s worse than the status quo.
Athena sprang fully-formed from Zeus’s head.
“Athena sprang fully-formed from Zeus’s head.”
True, but she was the product of thought.
The proper allusion is Sin springing from Satan’s head.
You should see Drudgereport right now. I think the guys on wall street blew a head gasket.
“VIDEO: ‘The government is promoting bad behavior… do we really want to subsidize the losers’ mortgages… This is America! How many of you people want to pay for your neighbor’s mortgage? President Obama are you listening? How about we all stop paying our mortgage! It’s a moral hazard’… MORE… ”
and
“TRADERS REVOLT: CNBC HOST CALLS FOR NEW ‘TEA PARTY’; CHICAGO FLOOR MOCKS OBAMA PLAN”
Wonder how many F-4 Phantoms the New Yawkers can muster for a (dog) fight?
We may not make it to 2010 as a single nation. Look at the revolt in “flyover country” over the bailouts; over the perceived and real plans to remove even more rights even faster than Bushies did; etc etc ad nauseum.
So the American Leyland story is yet another chapter in what appears to be a fast devolution of a nation into warring factions. Some want GMChrysler to survive, others say “why should we have Privatized Profits AND Socialized Losses for the rich?!” (I.E. THEY get rich when things go well; WE the taxpayers get poor when things go south).
I’m in the latter camp. NO more money for folks who shouldn’t have gotten a mortgage in the first place; no more money for GMChrysler; no more money for dead-beats; no more money for billionaires; no more money for political pals as a reward for helping to elect The One.
Change, my @ss. It’s the same and worse than the last bunch of bingo-the-evil-clowns.
I’ve been saying since 1979 to anyone who’d listen, that we HAVE to get rid of both of these parties and start afresh.
Now it’s probably too late. “KLOP”. (Heil hitler salute / see ‘allo ‘allow if you don’t get it).
You are correct. It is too big a stinker not to happen. Prepare to be amused and amazed.
Yes,Chrysler will be absorbed by General Motors.
No, GM does not want to own Chrysler,nor does Chrysler relish the thoughts of being devoured.
By mid March GM and Chrysler,cup in hand will be knocking on the door again.For all of the reasons Mr Farago listed,President Obama is gonn’a ask for a shotgun and a preacher.The US government, and now the Canadian government cannot play favorites and let Chrysler die while GM lives.
They can’t let both of them croak,too much cash has been commited,and it will kill Ford.
GM and Chrysler will protest all the way to the alter.Remember whose holding the shotgun,and the checkbook.Something about he who pays the piper calls the tune eh?
This is a possible, albeit absurd scenario. Just imagine the time and energy wasted trying to get these two companies in sync? Just as importantly…the cars that aren’t selling are not going to magically start selling post merger. So, the just as many models are likely to be cut; if not more due to redundancies. So no plants or jobs saved. A token gesture coming at enormous cost.
Here’s a brilliant(ly abysmal) thought!
GMChrysler could hive off the ‘orridly awful Chrysler Sebring factory to a newly independent Saturn Automotive Sales Corporation owned by the dealers. The four cylinder engines are sourced from the Global Motors plant in Dundee (1/3 owned by Hyundai, Mitsubishi and Chrysler).
After all, Daimler says that their 19.9% of Chrysler is worth “zero” so why not give the factory and car (each worth “zero”) to Saturn, also worth virtually “zero”? It’s the automotive equivalent of doing a “bad bank” to the monied powers that are running the country – whoops, my bad, I mean the Fed.
At least this would mean the mid-sized car would be US built instead of Chinese built.
Then pull the tools & dies from Toluca for the Journey and put that in the Michigan plant alongside the new Saturn Sebring, and dump the Avenger. If Dodge needs a full sized car, why GMChrysler has a factory building the Aura!!! It’s closely related to the Chevrolet Malibu, eh?
So Saturn would end up with Euro-built Astra, Avenger, Journey and maybe to fill the gap, how about the nice unwanted new Saturn Viva (i.e. a GMDaewoo product based on the new Cobalt replacement)? GM could supply the SUV’s like the Vue for awhile, after which Saturn could buy up products from Ssangyong or GMDaewoo to replace them. After 2011, the Astra could be replaced by some loverly Chinese junk (pardon the bad pun).
May as well put all the turds in one pile, I say.
No. Chapter 7 for Chrysler and Chapter 11 for GM. When all is said and done, there’s no other sensible solution. Sooner or later, that truth must head its way over to Wasington. Perhaps not today, perhaps not tomorrow, but when the coffers runs out once and for all. With no real plan for the future, with no real interest in changing course or culture, doom is all there is left.
It’s such a horrendous idea on so many levels it just has to happen
Yeah, but what an epic train wreck it’ll be in early 2010…
On the upside, maybe we’ll be able to get a Silverado with a Cummins deisel for $12K during the Fall 2010 bankruptcy sale…
Or, (better yet!!!) maybe they could drop the Cummins into the Panda for some truely wikkid fun… And jack it up with monster wheels and spinner rims?
This could be much worse than the 70’s in many ways.
Go ahead with American Leyland; I can’t take it anymore.
But you can’t make me buy their products.
“But you can’t make me buy their products.”
They’ll fix that somehow as well. Trust me. A company willing to put a gun to the government and say “Cough up or die!” should be willing to use that sales technique elsewhere…
what you have all forgotten is that during the “LEYLAND ”
incident in England in the 1980’s Leyland (god rest their soul)
were actually selling cars , sure they rusted before you got
them home , and the doors fell off , but nevertheless they
were selling cars !
If Fiat takes partial control over Chrysler the Italian government should also pay into the bailout.
Chrysler can be saved, because it is smaller, and because it does not have the totally weird 7 or 8 brands GM has. Every brand GM has is damaged goods. GM is such a large tangled mess no one can save it, no matter what money is shoved its way. Just as the British tried to save British Leyland and failed, the US govt will fail with GM. Chrysler knows it is behind on small cars, Fiat can help them catch up on small cars.
I bought a new 1979 TR7 which was an absolute joy to drive, but with Lucas Prince of Darkness on board, I understand why Leyland died.
I think the real truth about cars is/are:
1. Americans will continue buying them until our last collective breath.
2. Americans will give any car company’s products a try for a while, no matter the quality or value. AMC, Fiat, MG, Triumph, Sunbeam, Yugo all come to mind, as well as pricier brands like R-R, Bugatti, and others with dubious value.
3. Americans love the underdog… for a while. Then we mercilessly beat him if he can’t become a winner. AMC, Fiat, MG, Triumph, Sunbeam, and Yugo come to mind again.
“American Leyland” will follow this same pattern. Sure, they will sell cars for awhile, but as long as we have an open economy the A-L cars will compete with the imports. Then protectionist tariffs will be applied to the imports as a means of propping up A-L. Consumers will still buy imports. Finally, A-L dies at about the same time the taxpayers’ wallets are fully drained.
Then maybe, just maybe, some clever entrepreneurs will be able to revive the American auto industry with competitive products.