Autoblog

I guess you don't understand one of the basic tenets of business. it's called operating capital. this is the money that pays the electric bill, pays wages, health care, and any of the other little things that make any business work day to day.

the government money is provided to automakers to develop more fuel efficient vehicles.

perhaps you're one of those that thought the government gave Chrysler money back in the 80's, right? hint: they never gave Chrysler a penny.

AZMike

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@AZMike:

I disagree with your contention Chrysler did not receive a penny from the government back in the day. When a company has a bad credit rating, and our government uses everyone's tax dollars to issue a loan with an artificially low interest rate, the company ends up saving a lot of money -- in contrast to going to a bank on the open market and paying a realistic and much higher interest rate due to its bad credit rating. In essence, the government is gambling with everyone's tax dollars that the company would not go bankrupt before repaying the loan. From an investment standpoint, it is the worst of both worlds: high risk (due to bad credit rating), and low payoff (due to low interest rate).

Some would argue such an investment is money well spent to protect many, many American jobs. Others would argue foreign governments do this sort of thing all the time with their own car companies. But let's not pretend it is not a form of bailout.

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I agree that if they have 11$billion and they are a private company they don't deserve one dime of US taxpayer $.

And no, I don't understand basic business.

I understand that all we have heard out of this administration is "free market trickle down" BS and the minute that all of these corporations get caught with their pants down we're told that the government needs to step in. Otherwise, the whole world will fall apart.

My mom worked for Pan Am which was done in by deregulation. As the company went down the board presented the ceos wife a brand new SL as a wedding present. Meanwhile they told the L.A. crew they could either work driving fork lifts ot move to the base in Miami. Well, after hundreds moved to Miami they closed it and threw those people in the streets. My middle class lady of a mom drove forklifts until the bitter end. They stole her pension.

That was all done under the mantle of free markets. Well, guess what? The airline (and many others) Failed and the sky didn't fall. The country went on. The same would happen again.

If a business has abusiness plan that sucks and the execs continue to give themselves crazy salaries (and don't tell me you need those salaries to attract the best. They seem to have attracted the worst most venal inept jerks on earth. And no one at Toyota makes what some of these guys at failing companies make.) then that business does not deserve to continue operating. If we have to have tough love and hard times, so be it.

Maybe we'll learn a lesson about who we put into office and what we expect of our business "leaders".

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"I seriously doubt Mr. Press left his lifelong job at Toyota to jump on a sinking ship."

Press jumped onto a sinking ship; that's a given. You ought to be asking why, if he's such a genius, he didn't know it was sinking.

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sorry, Big Will;

I wasn't aware it was a sinking ship. what criteria do you use for that?

I'll give you my own criteria, from the prospective of a ten year Dodge dealer (1983-1993).

in case you didn't know, Chrysler divested itself of excess capacity back in the early 80's, closing over ten plants. GM and Ford did not. were you one of the far-thinking folks that came into my dealership back then, asking "what are you going to do when Chrysler goes out of business, sell Studebakers?" just like then, it still brings a smile to my face.

we've all heard about the new Honda Insight (after the old one didn't sell, or the Accord Hybrid, which also didn't sell), and the new Prius. many have gotten excited about the upcoming Chevy Volt.

...and out of the weeds comes "sinking ship" Chrysler, with not one but THREE electric vehicles!do you suppose there would be no market for an electric Wrangler, minivan, or sports car?

you're obviously not well versed in Chrysler history, or the way Cerberus operates. a little history lesson: Chrysler has always had many ups and downs, from the time of the Chrysler Airflow on the 30's. but the one thing that's always a constant; they always bounce back. don't believe it? just think of all the Dodge jokes on "Married With Children" back in the 80's; not quite the connotation that the Viper, Charger, Ram, and Challenger provide today, huh?

Cerberus does buy ailing companies, and turns them around. if Daimler hadn't come in and ruined Chrysler (and sucked out the eleven BILLION Chrysler had on hand on the first day of the merger), they would still be in great shape. Cerberus hires absolutely the best talent to make this happen, with folks like Jim Press. they're not exactly short on cash, and had to do a lot less than GM and Ford (think about those divested plants back in the 80's) to put themselves into a much leaner position. they are also in this for the long run, and selling now would be absolutely foolish.

what are you basing your "sinking ship" on?

AZMike

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Wrong.

Chrysler has a bright future. However the eggheads running the show right now have to disappear.

I could turn Chrysler around in a year...even considering the present day economy. No kidding. It's not that hard to do. Really, it isn't.

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