Monday, March 30, 2009

Government to Mandate Chrysler/Fiat Marriage in 30 Days?

Google News is showing over 2,000 news articles on the Government Auto Bailout. A article posted an hour ago says that the Government is mandating that Chrysler complete a deal to combine with Fiat within 30 days, with $6 billion being the carrot on the end of the stick. Beats me how $6 billion is going to pay for operating losses for at least two years and the retooling of almost all of Chrysler's factories.

On the other hand, the Raleigh News & Observer (online) has another take on the status of the government position. The N&O says that the government has rejected GM and Chrysler's requests, and says the government is only committing to 60 days worth of operating capital for GM to get its shifts together (or something to that effect) and reform its way to viability. Apparently sending Rick Wagoner on his way on the blunt end of the Tom Dempsey express was the first part of the government's demand. Chrysler will be given 30 days to cut a deal with Fiat. Fiat will be limited to a 49% stake in Chrysler until all loans are paid and must commit to building small cars and engines in the US. The government report is especially critical of Chrysler noting its poor quality scores in Consumer Reports and its 3% market share of small cars. In essence, Chrysler is on double secret probation. It's a good thing Chrysler has Dean Bob Nardelli at the helm.

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