Good morning, happy commuters;
This morning before a profoundly important election, we have news that the feds won’t be helping to pay for the merger of GM and Chrysler as GM CEO Rick “The Rick” Wagoner had hoped. The deal may still go through since Chrysler owners Cerberus Capital Management wants out (link to google cache. newsweek site is borked. – ed) and GM thinks that Chrysler has $11 billion still sitting around and would like to spend it (that’s rich. will the funds be doled out by the easter bunny? – ed You know, when you make fun of Chrysler, you make Lido cry.)
What does all of this mean to you, dear reader? Well, if nobody’s open to catch this Hail Mary pass, these two companies are poised to file for bankruptcy sooner rather than later. Big deal? How about the (federal) Pension Benefit Guarantee Corporation absorbing all of the pension obligations of both GM and Chrysler? That’s you and me footing the bill for all of the goodies that the UAW has fought so hard for. How about paying unemployment benefits to tens of thousands of auto workers and their suppliers and the dealers? You can see where this is going…
I understand not wanting to give taxpayer money to Cerberus. They’re a private equity firm and they should have to eat the loss of the $7 billion they paid Daimler to take over Chrysler. Then what? Nobody buys them, they file for dissolution and we’re left holding the bag? That doesn’t sound like a great option in the middle of a recession. Of course, GM’s gonna kill them off eventually as well, it’ll just take longer! Hooray!
How’re you feeling about the Lifetime Powertrain Warranty on your Dodge pickup now?
– bob