A group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout.
Barack Obama • In comments about today’s epic Chrysler chapter 11 bankruptcy filing. Further sticking the knife into the hedge funds and investors, who dispute Obama’s claims, “They were hoping that everybody else would make sacrifices and they would have to make none.” • source
If unions don’t accept cuts, they may cut out. Fiat is Chrysler’s main hope for survival right now, and they know this, but they still aren’t afraid of playing hardball. If unions don’t want to take cuts, said CEO Sergio Marchionne, “Absolutely we are prepared to walk.” The unions may not have much of a choice, if option B is the dissolution of Chrysler. source
It’s the kind of daunting task that calls for a great national project. Nationalizing the first automaker to go would give us a lab for that project, and save American manufacturing to boot.
Non Vivant Blogger John Zwick • Suggesting the idea of a nationally-reworked car company; Zwick suggests that the it would allow the country to move towards cleaner, greener cars and into a more modern approach to an industry famous for bloat. We’re sure some might claim it’s socialism or *gasp* communism, but that’s why this article is clearly marked as opinion, so you jerks can’t claim we’re the ones saying it. As it is, Zwick is making a reasoned argument. • source
We think we can have a successful U.S. auto industry. But it’s got to be one that’s realistically designed to weather this storm and to emerge — at the other end — much more lean, mean and competitive than it currently is.
President Barack Obama • On Face the Nation yesterday morning; the president and his administration feel that the automakers (particularly Chrysler, who seems to have given up hope for anything but a merger) are not doing enough to aggressively restructure their companies in the face of impending doom. • source
