Bailout Watch 246: When You Think "Viability" And "Accountability," Think Chrysler

Edward Niedermeyer
by Edward Niedermeyer
bailout watch 246 when you think viability and accountability think chrysler

For lo, Robert Nardelli hath descended from the mountain, and yea verily he has a plan! “The company … is ready to share our plans for returning Chrysler to profitability as we move beyond this unprecedented financial crisis,” says Bob the Builder in a memo to employees that was leaked to Reuters. The memo clarifies that government funds would be used to support Chrysler’s ongoing operations, including obligations to pay wages and suppliers, fund health care and pensions and to continue future product development. Not a penny will go to Cerberus. In even less surprising news, Bloomberg reports that Chrysler expects to meet its 24 percent workforce reduction goal with few, if any, involuntary layoffs. Apparently Chrysler’s employees are finding buyout offers more compelling now that the company is in the federal begging business. “There is some reasoning here that is telling people there is more security in unemployment than in staying with the company,”says automotive corporate recruiter Ed Crowder. “If they don’t take it now, they are feeling we may not get anything in three months.” Chrysler expects “minimal, if any, involuntary layoffs come the end of next month,” according to spokesfolks.

Join the conversation
4 of 5 comments
  • Autoemployeefornow Autoemployeefornow on Nov 26, 2008

    If Cerberus ever reports the "actual" number of layoffs it will be closer to 30 to 40 percent easy. Wait and see.

  • Oldyak Oldyak on Nov 26, 2008

    I hope that Chrysler gets its revenge buy sueing the hell out of Damlier and can recover to make if not the best cars,Some of the most interesting and B-4 Hey if you don't like em,don't buy em..but plenty did b-4 all the talent was let go by Damlier!!

  • Cmus Cmus on Nov 26, 2008

    Go get 'em, Bob. I am pulling for Chrysler to come out of this mess. Much better designs from Chrysler than say, GM. Their implementation isn't what it could be (although my wife's Patriot Limited is probably the best car either one of us have had, and a vast improvement over her Corolla previous) but some slimming down and government-assisted reorganization could go a long way with that. I'm on the bandwagon man, at least they appear to *want* to fix their processes.

  • DubTee1480 DubTee1480 on Nov 26, 2008

    Bob the Builder. Heh.