I’m a bit surprised that none of the RedState wits have failed to notice the hopefully unintended connection between the Chrysler bailout and the President’s leadership style… A fiat is an arbitrary decree made by someone with ultimate authority (and no accountability). I’ve been laughing on several levels at the feds’ combination of Chrysler and Fiat as the means to rescue the company, but it | Read More »
“GM’s Doomed Future”
For as long as I can remember, most issues of Forbes magazine have been graced by columns on the automotive industry by long-time (more than 50 years) journalist-of-that-industry Jerry Flint. Over the years, my only real gripe with Mr. Flint has been his long-running belief that “we” needed to do more to help the Detroit automakers – a viewpoint that I’ve never shared. But aside | Read More »
Chrysler..the New “Volkswagen” or “The Peoples Car”… whether you want it or not.
Today the Obama Administration paid of the “Campaign Debt” it owed to the UAW in spectacular fashion! Yes sir, if Chrysler can get the rest of its debtors on board with their Obama stamped plan and seal the deal with Fiat then the UAW will get a 55% share of Chrysler. 55% Share…. And get this….after all of that THEN Chrysler will be eligible for | Read More »
Rush Limbaugh right again. UAW to get 55% Chrysler ownership and Board Seats. Government gets 10%. Fascism replaces quality as ‘Job #1′.
www.thepoliticalclass.com Rush Limbaugh right again. UAW to get 55% Chrysler ownership and Board Seats. Government gets 10%. Fascism replaces quality as ‘Job #1′. Rush Limbaugh has claimed for some time that one of the goals of the Obama Administration is to turn control of the auto industry over to the UAW. It appears that Rush was right as the latest deal has the UAW controlling | Read More »
Obama Orders GM and MOPAR Out Of NASCAR
In a stunning move, the Obama White House announced today that GM and Chrysler must end their involvement in NASCAR stock car racing at the end of this season to remain eligible to receive additional financial aid from the government.
Today’s Headlines — March 31, 2009
http://www.washingtontimes.com/news/2009/mar/31/gm-chrysler-move-jolts-markets/ Bankruptcy still looms for GM, Chrysler — http://www.washingtontimes.com/news/2009/mar/31/congress-goes-green-but-holds-on-to-coal/ Coal is winner even in ‘green’ Congress — http://www.washingtontimes.com/news/2009/mar/31/zimbabwe-prison-compared-to-death-camps/ Zimbabwe prison compared to death camps — http://www.washingtontimes.com/news/2009/mar/31/iran-offers-help-afghanistan/ Iran offers to help in Afghanistan — http://www.washingtontimes.com/news/2009/mar/31/us-to-retain-pressure-on-iran-guards/ U.S. to retain pressure on Iran Guards — http://www.washingtontimes.com/news/2009/mar/31/european-trip-to-test-obamas-influence/ European trip to test Obama’s influence — http://www.washingtontimes.com/news/2009/mar/31/obamas-tough-love-doesnt-dent-detroits-spirit/ Motown suffers from Wall Street envy — http://www.washingtontimes.com/news/2009/mar/31/gm-move-now-a-tightrope-for-obama/ GM move now a tightrope for | Read More »
Buying a New Car (fresh paint, this car is “hot”)
So the big news today is that Rick Wagoner (CEO of General Motors) is going to “step down” at the request of the White House. Meanwhile, plenty of other GM workers are losing their jobs, courtesy of not-quite-a-bankruptcy and government intervention. On the open market, one could buy all of GM for $2.21 Billion. But our government is no cheapskate: GM has already received $13.4 | Read More »
Is GM toast?
No question about it according to this Atlantic article. This paragraph sums it up. GM has burned through $13.4 billion in less than six months. What will $30 billion buy us? Another year, at best, with no signs of a turnaround in the market for cars. Autos, like other big consumer durables, are especially sensitive to downturns like this. There’s only so much food you | Read More »
Just when you thought the bailouts couldn’t be any more messed up…
WSJ posted this gem today. It’s absolutely mind-boggling. Here are a few samples. Bankruptcy Funding Solicited for Car Makers Outside advisers to the U.S. Treasury have started lining up the largest bankruptcy loan ever, talking with banks and other lenders about at least $40 billion in financing for General Motors Corp. and Chrysler LLC, in case the two auto makers need it, said several people | Read More »
Of Karl Marx, Consumerism and Banks
The complete market failure to accurately assess the mounting system-wide financial risk being assumed by the private sector, while the market simultaneously assumed an uninterrupted rise in buying power and real estate values, feels like one big Groupthink-based-failure. Groupthink-encouraged-Wall-Street-adopted-bad quantum math equals a really big problem. So consider this the anti-Groupthink muse of outcomes to our financial crisis, and let’s start with a seemingly unrelated | Read More »
, CITI Bank
, Financial Crisis
, printing money
, The Federal Reserve
More stupid car tricks
The automobile industry’s domestic sales figures for 2008 are out, and to absolutely no one’s surprise, they do not paint a pretty picture. With the exception of BMW’s Mini and Subaru, all brands posted losses – yes, even Toyota and Honda. Chrysler took the biggest hit, as its sales were off by 30%. General Motors sales dropped nearly 23%, and Ford managed to do only slightly better | Read More »
More info on Cerberus
Last June, Cerberus sold more than half of Chrysler and significantly cut its investment in GMAC in order to “lower its risk”. Cerberus seems desperate to get rid of Chrysler. It’s talking to everyone willing to listen to take it off its hands. Hyundai looks like a potential “strategic partner”. So, vote no on the bailout. It won’t mean the end of the world for | Read More »
Boycott the Bailout Babies
The sleazy Detroit automakers are trying to blackmail Congress into preventing a bankruptcy, claiming that the public would not buy cars from a bankrupt company (which is nonsense. The Feds would guarantee people’s warranties, and the automakers would continue making and servicing cars. Do you know people who refuse to fly United because they’ve been through bankruptcy?). The real reason is that in bankruptcy, | Read More »
GM Vice-Chair: Bailout Can’t Work
There’s so much to hate about the proposed bailout of the Big 4 automakers (GM, Chrysler, Ford, and Tesla), that you can occasionally be forgiven for forgetting some of the problems with the idea. The Journal’s Holman Jenkins points out the most basic flaw: it can’t work. Leave it to Bob Lutz, GM’s voluble vice chairman, to puncture the unreality of the auto bailout he himself | Read More »
Cram Down the Investors of Chrysler LLC and Tesla Motors
And we have more expert coverage of the grand special-interest giveaway that is the automaker-bailout legislation currently being negotiated between the White House and Congressional Democrats. The bailout contemplates a numerically-unspecified amount of public money to be donated to certain eligible automakers. You’re “eligible” if you filed a straw-man recovery plan in Congress on December 2. That means you’re either GM, Ford Motor, or Chrysler | Read More »