Political Discussions
Chrysler must merge with Fiat or no gov't loan
Posted by satijournal • 3/30/09 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: auto makers, politics
Chrysler, which the administration believes cannot survive as a stand-alone company, must reach an agreement to partner with the Italian automaker, Fiat, in the next 30 days to become eligible for as much as $6 billion in additional federal loans.
www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033001239.ht...
Now this is ridiculous. Fiat has been trying to offload its automotive division to GM and Ford but they both turned it down. There's not a big demand for Italian automobiles here and it's not like Fiat has a reputation for reliability.
So now, Chrysler and Fiat -- two makers of unreliable automobiles, will merge so they can expand their line of crap.
User Comments
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Obamanomics Trainwreck of the day. -
And now it's reported that ousted CEO of bailed out General Motors will get $20 million retirement package!
www.abcnews.go.com/Blotter/story?id=7208201&page=1 -
seems like the word "fiat" applies well to the ousting at GM! -
It is no coincidence that European/ Japanese car manufacturers will end up rescuing some of the US car industry.
Essentially it is down to the historically low levels of taxation on road fuel in the US compared with other world vehicle markets.
US car firms have lazily been building fat uneconomical cars for the home market which have no sale potential anywhere else in the world.
Meanwhile in Europe and Japan high fuel taxation has been a driver for car firms to produce ever more efficient vehicles which have a world market.
The key thing here is that Fiat (Alpha Romeo, Ferrari, Iveco etc) were pioneers of robot based production lines and today are seen as having amongst the most high tech car production plants in the business.
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