Wednesday, October 29, 2008

Have Some Spare Failure Lying Around?

Are you short on cash? Do you have some spare failure lying around? Of course you do. Right now, our federal government is paying top dollar for your failure. Don't want to give your failure away? That's ok. They'll loan you cash. You keep your FAIL!

Yeah, loaning car companies, airlines, banks, etc money is old hat for our federal government. But at some point don't you have to stop? If I can't afford something and I can't secure financing for it, should I really expect the government to back my loan? That's what GM want to do with an acquisition of Chrysler. It's not like Iacocca is running the show anymore. I have my doubts that the next K-Car or minivan is waiting in the wings from the likes of Chrysler. Even if they do, they're not the ones trying to get the loan. GM is trying to get the loan. What is the difference between Chrysler going out of business and GM buying Chrysler and then shutting down excess dealers and auto plants?

Chrysler is in trouble and it needs to die. It won't be all doom and gloom. I'm sure Jeep will live on. If Chrysler was willing to buy all of AMC just for Jeep, someone will pick them up now. Chrysler is holding onto some nice technology and some pretty sophisticated plants they could sell off. But if GM wants to buy them out, they should at least be able to front the cash to make that happen. Even without libertarian leanings, I can find no good that can come of the federal government backing loans or taking some interest in the newly merged company. Layoffs will still be severe. Plant and dealership closings will still be severe. Game over, man.

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