elcopone

Warning: U.S. Auto Crash Ahead

I agree that the Fiat deal is simply absurd. However, I'm not sure of this "crash" you speak of. Are you talking a crash of car sales, stock prices, and/or companies? It is not clear to me in your post.

I think a good argument can be made that after the short-term supplier chain disruption, the remaining OEM's could be looking at 5-25% of the US market share up for grabs. Long-term this is very positive for the remaining automakers.

Chrysler and Fiat's Latest Tiff: Not Unexpected, Not Good

If the fiat deal goes though, I don't see why the US would even consider helping a Chrysler. Let's not forget that Daimler still owns 25% of Chrysler. With another 35% going to Fiat, that would make the foreign ownership stake 60%, which would mean it's not an American company. So the US would be subsidizing a foreign company.

I personally have said that if Cerebus wasn't willing to infuse capital that they have into Chrysler because it is too risky, why should the US taxpayer have to bare that risk?