Chrysler LLC is not driving into the sunset anytime soon. Yes it filed for Chapter 11 Bankruptcy protection just a couple of hours ago, and will no longer enjoy the managerial autonomy having to listen to the Italians from this point forward. But as in any business merger and acquisition, there are the blessings and the curses, except that in this case Chrysler will have to live with all the curses, and hope that in time, it can convert them into blessings, at least to some extent. Italian carmaker Fiat is the answer to the Chrysler crisis, and perhaps a strong signal to the rest of my isolationist and protectionist minded friends that occasionally the answers to our critical problems could lay beyond our borders. From where I am sitting, it is good news for not just American automakers, but for a lot of workers, suppliers and distributors across the country.
The point was to avoid bankruptcy altogether but according the President this morning, some of the key investors weren’t interested in winning Obama’s friendship. Chrysler's $6.9 billion in secured debt is probably the tip of the iceberg, and it is fair to assume that not everyone would sign off on it. So here we are, Chrysler will have to fundamentally restructure, and the best way to articulate the sentiment is in the president’s own words. "No one should be confused about what a bankruptcy process means. This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler's revival."
For once in a long time, bankruptcy doesn’t seem like a bad thing after all. I will hate to sound like Newt Gingrich and every other Republican, but I only hope the road ahead is free of further ‘bailout bumps’. I am a big advocate for keeping American automakers afloat, and at all cost. It has a lot more to do with the direct economic impact, but also affects the national psyche on very different levels.
So far the government (which is essentially you and me), have given about $4 billion in loans into Chrysler, and plans to provide up to $8 billion more to carry the company through bankruptcy. Still, I think it is a step in the right direction.The flip side of all this, Chapter11 bankruptcy which was supposed to make Chrysler look like a struggling K-Mart store, now makes it a formidable competitor in the global marketplace. If this Fiat ‘marriage’ succeeds, this would have created a blueprint for a new phase of economic interdependence, the chassis to a full fledged globalization.
Pardon my propaganda laden blog, the name of the game is fuel-efficiency and lower-emission technology, and at some point in your life, “you gotta do what you gotta do”
Just in case you haven’t figured the caveat to all this, the next time you drive a Chrysler, you may actually be driving a Fiat, but nothing about its appearance will change. Even if it Chrysler models start showing up a little ‘boxy’ and ‘shrunk’, you bet it will be a lot cleaner and efficient. Now that is how you get into the future.
Buy Chrysler, Buy American.
God save American jobs and God bless us all.






















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