Daily Podcast: What Happens Next?

Robert Farago
by Robert Farago
daily podcast what happens next

Now that Chrysler and GM have submitted their “viability plans,” the Congressional corridors of power have been eerily silent on the subject. Oh sure, the White House Press secretary said something patriotic about preserving this, that and the other thing. And the presidential clusterfuck committee charged with sorting this shit out is meeting even as I obscene. But I was expecteding a lot more public political positioning on Motown’s second round of trough snuffling. Never mind. I reckon Chrysler and GM will get their/our money and soldier on. I also predict the feds will direct Cerberus to toss the keys to Chrysler to GM. Political expediency—the need not to “throw in the towel” on any aspect of the U.S. economy—makes ChryCo inviolate. So why not lump all of Detroit’s “troubled assets” together and create a federally controlled—sorry, “supervised” American Leyland? It’s such a horrendous idea on so many levels it just has to happen. Or not. What say you?

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4 of 17 comments
  • Akear Akear on Feb 19, 2009

    If Fiat takes partial control over Chrysler the Italian government should also pay into the bailout.

  • Matt51 Matt51 on Feb 19, 2009

    Chrysler can be saved, because it is smaller, and because it does not have the totally weird 7 or 8 brands GM has. Every brand GM has is damaged goods. GM is such a large tangled mess no one can save it, no matter what money is shoved its way. Just as the British tried to save British Leyland and failed, the US govt will fail with GM. Chrysler knows it is behind on small cars, Fiat can help them catch up on small cars.

  • Matt51 Matt51 on Feb 19, 2009

    I bought a new 1979 TR7 which was an absolute joy to drive, but with Lucas Prince of Darkness on board, I understand why Leyland died.

  • SCE to AUX SCE to AUX on Feb 20, 2009

    I think the real truth about cars is/are: 1. Americans will continue buying them until our last collective breath. 2. Americans will give any car company's products a try for a while, no matter the quality or value. AMC, Fiat, MG, Triumph, Sunbeam, Yugo all come to mind, as well as pricier brands like R-R, Bugatti, and others with dubious value. 3. Americans love the underdog... for a while. Then we mercilessly beat him if he can't become a winner. AMC, Fiat, MG, Triumph, Sunbeam, and Yugo come to mind again. "American Leyland" will follow this same pattern. Sure, they will sell cars for awhile, but as long as we have an open economy the A-L cars will compete with the imports. Then protectionist tariffs will be applied to the imports as a means of propping up A-L. Consumers will still buy imports. Finally, A-L dies at about the same time the taxpayers' wallets are fully drained. Then maybe, just maybe, some clever entrepreneurs will be able to revive the American auto industry with competitive products.