I think Chrysler is doomed to failure. Besides Dodge, they don’t make any popular models. I don’t think they should have recieved a loan.
I don’t think that any of the banks should have received loans, either. Especially since they’re not useing the money the way they were supposed to.
And with the 24x7 news media repeating the mantra, I am sure there soothsaying will come true.
Actually, many are using the money the way they’re supposed to, and there will be more of it to come. The actual purpose of TARP preferred was to bolster the tangible net worth of banks that were strong, not weak. (The “too big to fails” being an exception) The purpose was to further strengthen them in order to take over banks that are expected to fail. All banks that received TARP funds are on the FDIC’s “calling list” to see if they can and will take over failing banks. The purpose was not to put cash at their disposal to loan out. Most of them already had plenty of cash.
But getting back to Chrysler. I think Chrysler has some valuable “franchises”, not only with Dodge trucks, but also with Jeep. It seems to me those “franchises” or “brand names” will continue no matter what. The real question is whether Cerebrus will continue to own those brands and such of the manufacturing equipment that’s worth having, or whether it won’t.
I genuinely believe Dodge trucks and Jeep, perhaps other brands will still be around in ten years. They might be produced by Toyota or BMW or even Ford, but they’ll be here.
Actually, it will survive, if it goes bankrupt, it will reemerge like the airliners. Allowing the big 3 to go bankrupt was probably the best thing do do. It would have cleared them of all their debt. I don’t understand why bankrupticy is so bad for the car companies. Giving them cash is just sending good money after a bad investment.
I recintly purchased a GM car. I got a saturn Astra. They need to make more cars like this. It’s nice looking, cheap and comfortable. It gets good mileage. I reccomend it.
I sure wish somebody would send me a bailout. I don’t have a single problem in this world that couldn’t be cured with $250,000.00.