The Great Italian Auto Bailout — Courtesy of U.S. Taxpayers

by John Berlau on January 1, 2014 · 83 comments

in Bailout Watch, Economy, Features, International, Labor, Mobility

Post image for The Great Italian Auto Bailout — Courtesy of U.S. Taxpayers

At the beginning of 2014, Detroit may be bankrupt, but they’re cheering the five-year-old U.S. auto bailout in Italy. That’s because after being the beneficiary of billions in U.S. taxpayer largesse, Fiat, the leading Italian auto company, is going to buy its final stake in Chrysler from that other big bailout recipient, the United Auto Workers (UAW).

“Chrysler’s Now Fully an Italian Auto Company,” reads the Time magazine online headline. But wait a minute! Wasn’t the bailout supposed to be about saving the American auto industry?

As Mark Beatty and wrote in The Daily Caller in November 2012, after presidential candidate Mitt Romney made the controversial claim that Fiat would be expanding production of Chrysler’s Jeep in China (a claim that turned out to be correct),

The real outrage arising from the 2009 Chrysler bailout is not that its parent company, Fiat, is planning to build plants in China. It’s that the politicized bankruptcy process limited Chrysler’s growth potential by tying it to an Italian dinosaur in the midst of the European fiscal crisis. The Obama administration literally gave away ownership of one of the Big Three American auto manufacturers to an Italian car maker struggling with labor and productivity issues worse than those that drove Chrysler to near-liquidation.

As we noted in the piece, much of Chrysler’s profits from its overhauled line are going to prop up Fiat’s failing, money-losing Italian business, rather than to expanding production and jobs in the U.S. Moody’s had downgraded Fiat’s credit rating to “junk” even before the Obama administration arranged for it to acquire a Chrysler stake, and in Autumn 2012, Moody’s gave Fiat another downgrade that the Financial Times described as even “further into ‘junk’ territory.”

Around this time, Barron’s put it like this in a headline, “This time, Chrysler could bail out Fiat.” Actually, the Barron’s headline is slightly misleading in one respect — Fiat didn’t contribute much of anything to the Chrysler’s bailout.

In the 2009 deal overseen by the Obama administration’s auto task force, Fiat paid no money to acquire its initial 20 percent stake in Chrysler — only contributing some of its intellectual property, instead. Fiat would later pay $2.2 billion to raise its stake in the company to 58.5 percent.

Continuing the bailout shell game, Fiat will now pay fellow bailout recipient UAW $4.4 billion for its stake in Chrysler. All the while, the U.S. government has pitched in more than $12 billion in taxpayer infusions.

In “saving” the American auto industry, Obama gave an American company away. And he gave it away at the expense of pension funds and other secured creditors, which were given a much smaller stake in the new company than they would have been given under traditional bankruptcy proceedings. American manufacturing workers also lost out on the deal; many are now hostages to the woes of Fiat and the Italian economy.

According to Barron’s, “Chrysler’s resurgence has been so strong that it now provides a lifeline for Turin’s Fiat, which faces serious challenges in Western Europe.” Fiat and Chrysler CEO Sergio Marchionne told Barron’s: “The Fiat Group has a future because of Chrysler.” Similarly, Bloomberg reported that, “without Chrysler, the Italian automaker would have posted a first-quarter net loss” in 2012.

The divergence between Chrysler’s profits and Fiat’s European losses is striking. In late 2012, Chrysler reported that its third-quarter profit surged 80 percent to $381 million.

But ironically, Fiat’s Marchionne has made Chrysler profitable again not by producing more of Fiat’s mini-cars, as the Obama administration urged it to do, but rather by doubling down on Chrysler’s most “environmentally incorrect” light trucks and sport-utility vehicles, such as the Jeep Grand Cherokee and Dodge Durango. In reporting Chrysler’s profit surge, Bloomberg noted that these earnings were “boosted by demand” for Jeep Grand Cherokees, while Fiat has “delayed new models such as the Punto hatchback.”

Marchionne deserves some credit. By refusing to follow General Motors’ lead to march in lockstep with the Obama administration’s wishes, he did not turn Chrysler into another “Government Motors,” making its own version of Chevy Volts that nobody wants.

But making more Jeeps and Dodge Durangos is — to use a motoring cliché — sort of like reinventing the wheel. Some other competent CEO could have figured that one out. Yet Chrysler being tied to Fiat’s European woes makes it less and less likely that much of the profit will be reinvested in the U.S. It’s likely that the bulk of that profit will instead be plowed into Fiat’s operations in Italy.

In June 2012, The Wall Street Journal painted a devastating picture of Fiat’s bloated workforce at its Turin headquarters. “Too many inefficient plants, coupled with a plunge in consumer demand, have left not only Fiat, but other car makers … bleeding cash.” Yet Fiat, which employs 63,000 Italian workers, “says it has no plans to cut jobs.” Instead, due to antiquated Italian labor laws (that Big Labor champions in the U.S.), it “furloughs” workers when it idles plants and pays them two-thirds of their salaries.

Because of the dysfunction of its Italian operations, Fiat must squeeze all it can out of its new Chrysler cash cow — bequeathed to it by U.S. taxpayers at the Obama administration’s behest. That may mean lowering costs on profitable vehicles like Jeeps by moving operations to lower-cost nations such as China (though Chrysler insists that it will only do so for vehicles sold in China). Whatever the case, Fiat will be reluctant to put many more American workers on its payroll with so many mouths to feed in its native Italy.

Had Chrysler gone through a traditional court-approved bankruptcy before it received any government money (as Massachusetts Gov. Mitt Romney advocated in a 2008 New York Times op-ed), its investors and workers would have had the opportunity to ask questions about Fiat’s financial viability. Even in 2009, Fiat was showing strains as its credit rating had already been downgraded to “junk,” so a good bankruptcy judge might have blocked such a merger.

Both Romney and Obama backed some form of government guarantees for American auto companies. Government aid to a specific business is something free market advocates can never support. But Chrysler’s politicized bankruptcy took away a more fundamental guarantee — the rule of law — and many American workers will suffer as a result.

fred January 2, 2014 at 12:22 am

No longer a US business? I’ll be moving to another car company for my purchases.

Oh, and nice call Obama.

Andrew Whitehead January 2, 2014 at 12:33 am

Amazing that the Obama administration has zero conception of basic economics. I suppose this is what happens when you put people with absolutely no real world experience in charge of processes they only understand in theory. Theory always looks good on the white board; reality is where the rubber meets the road and there is no one in the current administration with any real world economic experience.

August January 2, 2014 at 12:36 am

And Americans who refuse to pay taxes for this outright theft…are LABELED FOR LIFE by the US Government as CRIMINALS!

ThomasJ January 2, 2014 at 12:54 am

Well now, who hasn’t read their assigned reading of ‘Economics in One Lesson’ by Henry Hazlitt? Oh, that’s right, public schools don’t teach correct economic theory. Interesting, that the information in that book (1st published in 1946) explains full well the outcome of such government intervention. The book is even legally free to read off the Internet from more than a few websites. If everyone would take a few hours out of their lives to read proper economic theory, perhaps we’d have a fighting chance at stopping such political bungling that wastes so much of our time and money!

Speak2Truth January 2, 2014 at 9:02 pm

Amazing reading, “Economics in One Lesson”. Thanks for the recommendation!

I’ve found an online PDF version and I am recommending it to all my friends.

Rusty Shaver January 3, 2014 at 5:35 pm

of course, your bottom line assumes that this wasn’t actually the desired outcome

boborino January 2, 2014 at 1:02 am

I guess dodge can’t claim to sell American muscle anymore.

cyoder January 2, 2014 at 11:12 am

Their cars are still American designed and built. They’d go broke trying to sell rebadged Fiats.

dart January 2, 2014 at 11:58 am

You mean like the dodge dart being a rebadged fiat viaggio?

johns January 2, 2014 at 1:36 pm

The Dart is a LOT more than a rebadged Fiat. Certainly some of the architecture and underpinnings are shared, but there are very few interchangeable parts.

Tim January 2, 2014 at 11:44 am

Is Eminem going to make a “Chrysler – imported from Turin” commercial?

Hmm January 2, 2014 at 1:14 am

Another Obama “achievement”?

IBguy January 2, 2014 at 1:27 pm

This is business. Everyone needs to stop bitching. How many times has this shit company been bailed out? Twice. It should have never been bailed out the first time. In the real world, if you fail, you FAIL. Dont blame Obama, or any other half wit politico – this is a failure of the business.

Jim January 2, 2014 at 3:29 pm

Nobody’s bitching about the business failing. They’re bitching because the American taxpayer stupidly had to pay billions after the business failed.

DB January 2, 2014 at 1:43 pm

No, has nothing to do with the president, that bailout was happening either way. This crap has been in motion for years!

Borntobepolitical January 2, 2014 at 1:55 pm

No, another DNC achievement. Obama could not find his Azz to wipe it.

Alana January 2, 2014 at 1:40 am

At the time, I took note of that Chrysler dead as the day that the rule of law in America died. Since then, the examples have increased exponentially.

Eric January 2, 2014 at 2:22 am

If you like your American Auto Industry…..You can keep your American Auto Industry?

mo123 January 2, 2014 at 6:42 am

Gawd you cons are tiresome. Same jokes over and over again.

Have you heard the one “if Obama had a son”

MrC#7 January 2, 2014 at 12:30 pm

Period.

Reggie January 2, 2014 at 3:17 am

We elect people who are primarily politicians, only to be shocked that what they do once in office is nothing but politics.

When will we elect a true businessman? A practicing medical doctor? An accountant? An engineer or a computerist? A machinist or a farmer?

We need someone in the White House who has at least spent some serious time working with his or her hands and paying middle class taxes. A person of intelligence and integrity who hasn’t been corrupted by the political process or shaped their entire mindset within the insular walls of academia, the military or beltway politics. Someone who can employ politicians as advisers without actually being one. Someone not beholden to a major political party or to any cartel including the insurance, banking or copyright cartels.

Our country is actually full of such people. They are what make this country the industrial and creative powerhouse it still is. But to be a truly good President, one needs to bring a broad perspective and some rich personal experience to the table. To be truly good, one needs more than just a nice smile or a Politically Correct race or gender. How about some actual personal integrity? Some humility and some willingness to admit mistakes? Someone who if they happen to be wealthy, wasn’t born wealthy. Someone who graduated from the “school of hard knocks.” Someone who is self-made. Someone who understands the “American Dream” and may be capable of breathing new life into it?

Paul January 2, 2014 at 5:37 pm

Ron Paul gave us three chances to do so. It appears we want none of it.

Time to lie in that bed made up so nicely

yougottobekidding January 2, 2014 at 3:46 am

Courtesy of Obama.

Eric January 2, 2014 at 4:27 am

Chrysler wanted to go it alone but the government said no. The government said Chrysler wasn’t strong enough then they gave them to Fiat.

Mr. Curmudgeon January 2, 2014 at 6:45 am

Proof, once again, that a free market should be left to its own devices. Chrysler should have shut its doors years ago, its assets and labor absorbed by other manufacturers (or industries), the UAW would have suffered the inevitable blow delivered by successful foreign competition, and the American taxpayer would have more money in their pocket to buy a new car, domestic or otherwise.

amy35801 January 2, 2014 at 4:31 pm

Perfectly, succinctly put!

Stan January 2, 2014 at 6:54 am

Old news to me. Fiat owns Ferrari also. Fiat acquired Lancia in 1968, became a shareholder of Ferrari in 1969, took control of Alfa Romeo from the Italian government in 1986, purchased Maserati in 1993, and became the majority shareholder of Chrysler in 2011.

Fiat is scheduled to purchase the remaining Chrysler shares by January 20, 2014.

Zastava Koral builds the Fiat 500L. They are the ones that built the Yugo. Their 500c are built in Mexico.

Don January 2, 2014 at 7:48 am

I wanted to buy a Jeep (upscale Rubicon or something) but refused to do so because of the Federal bailout. But now, since my ancestors were Italian and I love Moo Goo Gai Pan, I guess I can finally buy one. So THAT’s good news.

yankeefan January 2, 2014 at 7:56 am

Grazi scemo! comprare italiano!

putupjob January 2, 2014 at 8:05 am

You won’t be hearing much of this in US msm (also known as Tass / Pravda).

polishsniper January 2, 2014 at 8:15 am

Just stop buying their product.

JDarb January 2, 2014 at 8:27 am

Another Romney-predicted Obama “success” story.

F U January 2, 2014 at 8:27 am

*^&@?! &^*#!!!! IMPEACH this $%* *&^&#?!!

Borntobepolitical January 2, 2014 at 1:56 pm

You forgot @*1l)*!!!

Bruce January 2, 2014 at 8:34 am

As a car buff, and retired advertising man, living in France, I’ve been following this story closely. Sergio Marchionne gets much of my respect; he took a dead company ruled by the aristocratic Agnelli family and turned it around. The Agnelli’s sat on their hands, as VW reinvented the ‘bug’ and Morris the ‘Mini’* (*Today owned by BMW). The sexiest of redo’s, the Fiat 500; think a young Sophia Loren and Fellini, sat on the drawing boards. Waiting for Sergio. He’s an ace with advertising campaigns and spiffy new logos, not to mention better car designs. He’s also a wiseguy; when congress asked him to pay-up “something” for Chrysler, he claimed: “Oprah is worth more”. He has a point, and I feel he will in time turn Chrysler around. At least he’s a car man, not a hedge fund, who bled the US gov’t's 1st gift dry. That was the 1st mistake: Leave it Bush, Ourbomber, and congress to screw that up!

Grime January 2, 2014 at 8:35 am

Another git from our Fiat-N-Chief.

terry January 2, 2014 at 8:38 am

Thanks Obama! From all your friends in Europe.

chuck January 2, 2014 at 8:44 am

goodbye chrysler

Sonny January 2, 2014 at 9:56 am

As the reality of the last 5 years sinks in; people are starting to see that the deconstruction of the US economy is still being implemented. America will no longer be preeminent in anything other than hangouts. No more super roll outs like the space shuttle; just more roll outs like Obamacare.

Nickr January 2, 2014 at 10:02 am

Squandering our American assets, work ethics, morals, and pride is the hallmark of this administration.

Rex January 2, 2014 at 10:06 am

Obama hates America. Idiots that voted for him must not have read his book.

smith January 2, 2014 at 11:48 am

obamas idiot voters cant read.

Fraank Tauss January 2, 2014 at 12:11 pm

Whether they can read or not, Obama voters hate America.

pakman January 2, 2014 at 10:47 am

Here’s the Hope and Change the UAW voters were looking for!

Jake January 2, 2014 at 11:12 am

If you like your car company you can keep your car company.

John January 2, 2014 at 11:16 am

It’s a shame Democrats can’t read. Somehow they’ll spin this to be Bush’s fault. What a sad political party.

Abner January 2, 2014 at 11:57 am

Don’t let the Repubs off the hook for their role in this mess even if their culpability is not as great as that of the Dems. Bush could have let the auto companies enter bankruptcy without approving the tax payer bailouts that delayed the crisis until after the 2008 election. The results of the election show how effective the strategy of not wanting the bankruptcies to occur on Bush’s watch was. Playing nothing but defense all the time doesn’t work.

Wes Bomer January 2, 2014 at 11:19 am

Obama went around the world apologizing for America. Promised the dismantling of it. Now claims he saved the auto industry and the Democrats are happy about it. He saved the auto industry but saved it for Italy, Mexico and Canada. The least we can do is get his comrade in hating America, Hillary( who said – four Americans are dead , what difference does it make) Clinton.

chicago860 January 2, 2014 at 11:41 am

wait till the uaw strikes…

Jersey Dave January 2, 2014 at 1:55 pm

With Fiat already moving Fiat production to China, a strike would really go well.

Then again the UAW were the folks who sold the controlling interest. Maybe they got some kind of promise. (We’ll see how good it is after the sale.) Or maybe their higher ups just pocketed the money. Either way, if Fiat owns the Company trademarks and designs, they can take them anywhere to produce them.

I just keep thinking of how Lee Iacocca built Chrysler into a great company. That was a little more than 20 years ago that he left, having saved Chrysler. This is a sad day.

Biff Henderson January 2, 2014 at 11:44 am

Funny…Chrysler plants and alive and well this morning. YOu people truly don’t understand the auto business

John Montgomery January 2, 2014 at 12:04 pm

Lots of folks want to attack a company that in a government approved partnership has helped bring Chrysler back to life, repaid all government loans, picked up the pieces after Daimler bailed and Cerberus Capital left it for dead. Fiat was the only one at the table willing to even try to help save Chrysler in 2009. Since then, a monumental effort was made on both sides of the partnership to make it work and Chrysler is profitable again.
Now that Fiat is hurting overseas several years later some people want to hammer them saying, playing Monday morning quarterback saying they did not support the rescue plan.
Here are the facts:
1. Fiat rescued Chrysler when NO ONE else would touch it with a 10 ft. pole. It saved 300,000 jobs at Chrysler and second tier suppliers, almost all of which were American jobs based here on our domestic soil.
2. Yes, Fiat got 20% up front, but BOUGHT their way up to 58.5% share and at the same time REPAID every penny of the high interest loans to the government and taxpayers 6 years early. Fiat does no owe taxpayers a single unpaid penny, but GM certainly does!
3. Fiat not only turned around Chrysler but greatly improved the quality of the product; just check up on all the awards, the new Chrysler “cash cow” profits and positive owner surveys for proof.
4. Fiat invested heavily in American soil based assembly plants making Chrysler cars and trucks and the long term job preservation and growth of American jobs. Chrysler EXPORTS Jeeps and other models like the Chrysler 200 (sold as a Lancia) to Europe? These vehicles are made HERE and sent THERE. Chrysler and Fiat are brands that are sold in over 110 countries. Part of the agreement was to make an electric car. Fiat has done it, making the 3000 unit “500E” electric vehicles now sold in California.
5. Fiat also owns 100% of recognized quality brands like New Holland Tractor, Case Backhoes, Kobelco Construction Excavators, FPT Powertrain Technologies, Magnetti Marelli electronic systems, as well as Ferrari, Maserati, Alfa Romeo, Lancia auto brands.
Only the ignorant believe that Fiat makes just small cars.
6. Fiat not only showed a willingness in invest in America but they and independent auto dealers built over 210 Fiat Studios since 2010 to sell the domestic content laden Fiat 500 in North America. The Fiat 500 engine is union made in Dundee, Michigan and received the “International Engine of the Year” award in 2010? The Fiat 500 has tires made by Firestone, brakes made by Bosch in USA and airbags made by Milliken in SC. The Fiat 500 is one of the safest, high mileage non hybrid gas engine vehicles available in America today. Don’t we need high mileage, efficient cars? The Fiat 500 outsells the Mini Cooper entire lineup consistently since the middle of 2011, passing them up less than one year after Fiat came to market here. Fiat invested in America in the middle of a deep recession and successfully brought back a brand to this county when NO other manufacturer has ever been able to do it. By the way, Americans work at these dealerships and US consumers have more choice in a small car.
7. Fiat is the #1 European manufacturer in low CO emission green friendly vehicles and the leader by far in natural gas vehicles. For instance, anyone who lives near London and has to drive into the city, a few cars are exempt from the $20/day impact taxes when entering the London city limits. The Fiat 500 is exempt because of low emissions.
8. Has anyone read Motor Trend magazine lately? The Ram 1500 Pickup Truck (40% of US market is pickups) just got the 2014 Motor Trend Truck of the Year award. This Ram 1500 with the 3.0 liter V-6 Eco-diesel motor (made by Fiat in Italy) and coupled with the new 8 speed transmission tows up to 9200 lbs. and gets a WHOPPING 8 MPG more that Ford or Chevy’s similar truck with diesel engines. Look for Motor Trend’s February 2014 issue, page 76, 77, 78.
9. Sergio Marchionne’s leadership is a great example of what is still possible in America…It can’t be changed in spite of folks trying to bend history or invent facts to support an agenda driven bias or pure ignorance of the facts. Sergio and the partnership should be highly applauded for making Chrysler profitable. Chances are the announcement today will bring more jobs to America, especially since some labor factors in Europe are much more difficult to control. There is actual talk of moving the Fiat HQ here. So, anyone have a problem with investing in America?
10. I invite anyone to visit any Chrysler, Ram, Dodge, Jeep, Fiat, Ferrari, Maserati, New Holland Tractor dealership here in America and take a look at the American made product. Perhaps seeing the results of a real partnership in person will help folks understand this is a very good thing for America and American jobs.
-John Montgomery

Bruce January 2, 2014 at 3:24 pm

John; you say everything I’m too lazy to say. You’re so right! I’m 68yo, did a good job, so I can’t understand idiots like Bush or Obama. I’ve since ‘investigated’ Chrysler’s problems. Check out Ceberus Capital Management. Then my post will make sense. Bruce

Brian January 2, 2014 at 12:06 pm

Fiat money bailing out Fiat cars you have to love it.

Lori January 2, 2014 at 1:21 pm

Just bought a Jeep… so I might have one of the last ones built in the US?

Johnny Ringo January 2, 2014 at 1:22 pm

How many times will the libertarians be proven correct? And, how many times will it take for people to ditch outdated modes of thought?

IMPEACH OBAMA January 2, 2014 at 1:32 pm

F ix
I t
A gain
T ony

dertay ernesto January 2, 2014 at 1:32 pm

Lets see if I have this correct., We gave billions of tax payer dollars and since I am one, my money too, to bail out the UAW. As I understand it, none of the foreign non union companies in the South, and O hates the South, he is never in the South to go anything, got a dime, even though those are AMERICAN workers who also work hard and can use a boost as well.
Wow, who would have figured, a union to big to fail. No one knows how much of those tax payer dollars came back to the trove chest of the democratic party but you can bet they are loaded with cash for 2014 and 2016.

Richard January 2, 2014 at 1:34 pm

If Fiat had a pickup truck it would look a lot like a Vespa.

mark January 2, 2014 at 1:40 pm

Another fine example of the dismantling process our government is incorporating within the manufacturing machine America once was. This one is blatant. Fiat also has heavy ties to the new world order. I’m not surprised by this at all, the writing was on the wall quite awhile back. Guess what’s coming down the pike? Much more of the same. Soon it will be the airline companies. Once fuel prices soar, watch for that round of foreign investments to take control. It’s tyranny folks. Simply, in your face egregious tyranny. Freedom from War, is a state dept document that spells out our governments plan for the new world order, police state, loss of all sovereignty, UN dictating international laws and enforcement. Research it and pass the word on. Fiat is but the tip of the tip that exposes their true intent. Recognize these actions will eventually strip American’s of all the freedoms we once enjoyed as unalienable rights.

CindiOC January 2, 2014 at 1:53 pm

Remember, the govt didn’t bail out GM and Chrysler. The Obama-ites bailed out the UAW. After all the money the union has spent over the yrs electing Democrats, the union leaders felt it was time to call in the chits. The govt took all the equity of the bond-holders, whose investments financed the company, and gave them to the UAW, in complete defiance of U. S. bankruptcy laws.

Borntobepolitical January 2, 2014 at 1:53 pm

Headline: DNC cashes in on Fiat bail out by US tax payers.

CindiOC January 2, 2014 at 1:58 pm

The govt didn’t bail out GM and Chrysler. The Obama-ites bailed out the UAW. Under U. S. bankruptcy laws, bond holders are 1st in line to receive whatever assets are available, since it was the bond holders’ money that financed company operations. Instead, the UAW reminded the president that the union spent millions to elect him and other Democrats, and now it was pay-back time, and who cares about a little thing called ‘the law.’

Counterpoint January 2, 2014 at 2:24 pm

Obama or Bush, Democrat or Republican, what’s the difference? Real decisions are made by large, multinational corporations, banks and the super rich.
As long as American voters can be manipulated into voting for one of the two big, corrupt parties, things will keep getting worse for all of us, except for the “elite”.
Get involved, listen to third party and independent candidates, vote for the ones you agree with, and keep an eye on them when they are in office. If there’s a gap between promises and actions, impeach them. Do it now, before you lose all your freedoms, privacy and everything you still own. Hope it’s not too late…

Patrick January 2, 2014 at 2:55 pm

What is with all the hateful racist tea-baggers blaming Obama for this? The President of the United States has no control over a company selling itself. It is not the job of the President to tell who can sell or buy something.

The fact is, it is Bush who is at fault for letting another American icon fail. Bush and his failed policies to support the Unionized American Worker has forced Chrysler to seek financial stability from Europe who apparently knows how to run a company and pay a fair livable wage.

Denny January 2, 2014 at 5:37 pm

Good post Patrick (sarcasm). It’s amazing to see someone who can contridict himself in such a short post. You ask why “the hateful teabaggers” are blaming Obama, then state it is not the job of the Pres to tell us who can buy or sell something……Did you miss Obama care? Obama is not only telling us who can buy or sell something, he is forcing you to do so…..and then you go on to your next paragraph and blame Bush for letting an icon fail…..Didn’t you just claim it wasn’t a President’s job to tell who can buy or sell something. You throw supporting the unions and livable wage in there two. Romney was right, Jeeps will be now made in China, the union auto worker jobs will just fade away. Amazing that to still by the blame BS while more American jobs will eventually fade away. Do you really think a foriegn company gives a rat’s behind about the American worker and it’s union. You shouldv’e learned that by now. You may think you’re being smart with your canned, repiticious tea-baggers comments, that certainly doesn’t bode well for Chrysler’s union workers. Ask yourself why Fiat made the decision to build Jeeps and China, and maybe you’ll have an epiphany, and you’ll realize your union has been castrated. It’s future as well as yours is in jeopardy.

Richard Blaine January 2, 2014 at 5:43 pm

Good job. You managed to fit “tea-bagger”, racist and Bush’s fault into one comment. You win the Arianna Huff-Poo Low Information Talking Points Award (know as the scum-bagger). Gratz!

Bob T January 2, 2014 at 3:38 pm

Well… There’s Ford.

Schein January 2, 2014 at 3:58 pm

This article is mostly on the mark regarding Chrysler essentially being gifted to the UAW and Fiat in 2009, but it leaves out a key point that the bulk of the $12 Billion taxpayer-funded bailout was in the form of loans. Chrysler refinanced this debt in capital markets a couple of years ago and repaid the $10.6 Billion in restructuring loans to the government. The remaining $1.4 B or so was from the “bridge” loan that President Bush made to the pre-bankruptcy Chrysler and is the amount that actually won’t be paid back – not an insignificant amount, but not an outrage on the scale of the $10 Billion + that taxpayers lost on GM.

Jim January 2, 2014 at 4:17 pm

While I’m not happy about this ordeal at all, I believe it is a better deal than if Chrysler would have went though the traditional bankruptcy. I feel the company could have been harmed beyond repair.
I think if they had went though bankruptcy many of the good new vehicles we have now would not built here in the states. and that is very important that that they are built here because that would cut down quite a bit on the customer base. I’m not talking just about the direct employees of the big 3 but the many jobs that are supported buy those.
AS long as they are building American designed vehicles here with American parts I’m not 100% against it.

Kent January 2, 2014 at 4:58 pm

So Romney was right all along.

Yea no intelligence at all running the white house . It is what happens when you stack the people around you with YES men or woman.

To them every idea is a great idea. When the intelligent people try to stop you from doing a bad thing you just ram it down there throats. Sound familiar to anyone?

AC January 2, 2014 at 5:14 pm

So, basically “It’s Bush’s fault”, Patrick?

How original.

Comments on this entry are closed.

Previous post:

Next post: