Miken

German Press: Fiat to Sign Deal with Opel, Not Chrysler

Fiat and GM Europe (mostly Opel) have a history. One part of the failed GM/Fiat venture that was beneficial was the exchange of powertrain technology. Fiat's small diesel engine technology was one of the things that GM was interested in and vice versa for gas engines. In fact, that's why GM Powertrain located its European headquarters in Turin, Italy.

So there is more of a 'known entity' with Fiat and GM. For the life of me, I can't quite understand why Fiat would be that interested in Chrysler other than the distribution system and ready made entree to the U.S. market. While the European unions (I.G. Metallurgy) are not wall flowers, they at least don't have the mentality that the UAW has in terms of potentially blowing up the company to get what they want. It just seems that Opel would be a better fit.

Obama to Automakers: Ultimatums with Teeth

With respect to GM failing to meet the requirements of the loan guarantees, the cause of that failure is the Obama administration itself.

Imagine trying to force the bondholders, union, suppliers, dealers, etc. to the negotiations, only to have the legs cut from beneath you by Obama saying he was not going to allow the auto industry to fail. What incentive do the stakeholders to budge an inch have then? This move was either calculated to force the automakers into bankruptcy by manipulation, or dangerously naive. The negotiations were effectively done at that instant.

Now the administration is taking a do-over saying 'this time I'm really, really serious'. They are taking the John Wayne approach and it's almost comical if it weren't so tragic. The mulligan is at the cost of the CEO's job.

It's also the best manifestation to date of the elitist protection of the banking/Wall Street businesses. No banker has lost his/her job. Sure, the CEO's of AIG and the GSE's are gone, but no banks or Wall Street guys. Hmmmmm.

And what's the deal with the government refusing to take TARP money back from those who don't need it. This is getting better than an old Abbott and Costello routine.

I understand that the Obama team has never run anything bigger than a candy shop, but can we afford their learning curve??