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.