Tag: Chrylser

By on February 28, 2012

As dark clouds bunch up over Europe the less healthy of the many European carmakers frantically look for friends that help them get through the hard times ahead. Fiat-Chrysler is “talking to everyone,” CEO Sergio Marchionne told Reuters. Marchionne isn’t picky when it comes to corralling companions: “We can be an active partner everywhere around the world.”

“Roughly, we’re looking at a number in the neighborhood of 20 percent of installed capacity that may be viewed in terms of being structurally redundant,” Marchionne said. I guess he wants (but does not dare) to say that every fifth car plant in Europe should be closed and its workers fired.

How does Marchionne want to do this? The American way: (Read More…)

By on February 1, 2012

 

American carmakers cast worried glances on Senators and union groups that want to create a level playing field with China. Senators Debbie Stabenow and Sherrod Brown, alongside union representatives and the labor-backed Economic Policy Institute try to push “the administration to bring a possible case at the World Trade Organization or begin a U.S. Commerce Department investigation that could lead to duties on Chinese-made auto parts,” as Reuters reports.

A study by the EPI alleges that the Chinese auto parts industry has received $27.5 billion in government subsidies since 2001. The study forgets that large parts of the U.S. auto industry would not be here anymore, would it not have been bailed-out by the U.S. government.

Why are carmakers horrified by the surely well-meant suggestion? Several reasons: (Read More…)

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