rbblum

Automakers: Investment Risk

The Chrysler story today really could be confused and given erroneous credit for the line 'Mr. President, this has disaster written all over it' . . . But it was actually the the movie The American President and a line from the character Sydney Wade as played by Annette Bening who delivered the appropriate, perhpas perfect, line.

But it still could appear to be a comedy of errors by the time Chrysler makes it through the gauntlet of bankruptcy court. It was painful enough for billions of taxpayer dollars going to prop up an American capitalist company in the business of manufacturing vehicles that, by most accounts, would appear to be in a downward spiral resulting in be a slow, painful crash, but Chrysler's storyline will not have a merciful ending for it really is, and has been, many things to many people. Not only was Congress determining by committee a myriad of regulations overseeing the final product but also a sense of push-me/pull-you as evidenced by management vs union. And if it was not bad enough that the current administration whipsawed Chrysler on its way to the barkruptcy court but somehow is giving the belief that Chrysler will be on the 'fast track' through the judicial system that is anticipating the merging of FIAT, an Italian manufacturer of adult-kiddie cars with an American machine that will be represented by dealerships that have somehow survived through a process of cut-throat, back-stabbing and luck. But worse, will be Chrsler's management role overseen by union through union eyes as well as a push by the invisible hands of the current administration, dictating what type of product it should sell, establishing the cost structure of manufacturing the product and the cost of selling the product as well as how the corporate structure should be established . . . all for the good of society.

Gotta go back to the line that describes the Chrysler story best . . .
Mr. President, this has disaster written all over it . . . albeit, in torturous, slow motion.