If Chrysler fails in the marketplace again two or three years from now, after billions more in government subisidies, won’t that reflect badly on Obama and his “economic team”? WIll it then appear to have been better to let Chrysler go into an actual, non-prearranged, non-jawboned bankruptcy, in which it would likely have been liquidated or in which the UAW would have had to make far more substantial concessions, like workers in other bankruptcies? The government could have assumed some of the U.A.W.s pension and health care liabilities (which it will probably end up doing, in part, in any case). But Chrysler’s demise would have been a real cautionary example that gave the administration leverage in the GM negotiations (which may be what the U.A.W. was really scared of). Chrysler’s rapid departure would also have opened up market share for GM–and for Ford, which is not wildly healthy itself.
Chrysler was bailed out once in the 80s, failed again, was bought by Daimler, was disgorged by Daimler, was bought by turnaround vultures Cerberus, and failed again. It’s about time they died already and the parts were sold off. People still want Jeeps and Dodge pickups. If the world can live without Neons and Plymouth mini-vans then so be it.
We’d be better off with one or two healthy American car companies than one healthy American car company that starts with an F that has to constantly fight off the two zombies being kept alive by our government. Let Chrysler die so Ford can live.
And maybe GM. When I get so old I have my pants hitched up to my armpits I might actually want a Cadillac. I can’t imagine being senile enough to want a Chrysler.
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