Daily Podcast: Endless Summer
The problems at Chrysler are immense: lackluster products, development cutbacks, a hugely bloated dealer network, cash flow issues, you name it. And don't forget Chrysler Finance. Although the former cash cow is now behind the veil of private ownership, the lender is in deep doo-doo. Not as deep as GMAC's ResCap. If GMAC's mortgage unit goes down, it'll take GMAC with it, and, potentially, sink GM. Even if GMAC somehow makes it though this incipient recession, GM's supplier problems– including the unresolved strike at American Axle and the ongoing debacle at Delphi– are looking more and more like a Gordian knot making love to a black hole (thank you Jonny). In fact, taken as a whole, GM's problems are worse than they were in late 2005. Oh, did I mention that the window for Chrysler owners Cerberus to sue Daimler for fraudulent conveyance ends in early August? Folk, it’s getting ugly, and we're not even calculating Ford's woes or the simple fact that Detroit's manufacturing jobs are leaving the country. We will be here through these dog days. When the excrement hits the air re-circulation device, just remember: we told you so. And we will take no joy in what happens next.
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