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Week of February 15, 2009 - February 21, 2009

Time to Let Chrysler and GM Declare Bankruptcy



They just don't get it.  The restructuring plans today, especially Chrysler's, are not realistic.  Can anyone imagine any infusion of cash into Chrysler that will allow it to make better cars than Honda and Toyota?  Chrysler's big concession is that it will cut the gas-guzzling, slow-selling Aspen and Durango and the almost 10-year-old PT Cruiser (which is based on the even older Neon platform).  Toyota and Honda come out with new fuel-efficient, super-reliable models every three years.  It's over:  Chrysler is like a cut-up, battered boxer gushing blood, with broken bones in each fist, staggering into the ninth round of a fifteen round fight.  There's no chance of winning....it's just how much blood (money) will gush out before the final bell rings. The government would do much better to buy Honda stock and give the laid-off Chrysler workers the dividends.  I live in Ohio and know how much this is going to impact the local economy, but even the most devout socialist has to acknowledge that most Chrysler and GM cars are not competitive and never will be, especially in a world of scarce gasoline.   The promised GM electrics will never materialize, and if they do, they'll be unreliable crap, like GM's first small front-wheel-drive cars.  Perhaps some private capital firm will be able to cobble together a viable company out of the good bits and pieces of the two.   
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somibear

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