Judge Arthur Gonzalez has approved Chrysler’s asset sale to Fiat, reports CNN Money, moving Chrysler closer to emerging from bankruptcy. Is it a coincidence that we are learning that the ChryCo bankruptcy is going swimmingly on the very day that General Motors files for bankruptcy protection? Probably not. It’s highly likely that everyone involved wants there to be only one automaker in Chapter 11 by the time a fresh batch of congressional hearings on the bailout (that was incidentally inspired by the fear of multiple, cascading auto-sector bankruptcies) roll around on Wednesday. Because nobody likes to look that foolish.
Chrysler has “a new lease on life” as a result of a “substantial” commitment by the U.S. government and “sacrifices from all stakeholders involved,” says President Barack Obama (via Bloomberg). Sure, some stakeholders (bondholders) have made more sacrifices than others (the UAW), but that’s just how politics work. And, by extension, the new American automotive industry. The sale faced more than 300 objections, all of which were overruled by Judge Gonzalez. “Not one penny of value of the debtors’ assets is going to anyone other than lenders who deserve it,” wrote Gonzalez.
Scary times, indeed. We’ve effectively just lost the last remnant of our once mighty manufacturing capacity. I guess there’s nothing left to do now but allow our financial Masters of the Universe to complete their job of pumping what’s left of American wealth overseas.
Now that Chrysler is coming out BR and GM is going into it GM should “just die” so that Chrysler and Ford can live. Let’ sget rid of the weakest automaker. Triage baby!
/sarcasm
Make that Judge Arthur “Peg Boy” Gonzalez.
However, this is just paperwork. The new Fiatsler has yet to build car 1. I am not convinced they will be able to cross that barrier.