What doesn’t seem to make sense here?
At the behest of the Obama administration, the CEO of GM, Rick Wagoner, resigned. He announced his resignation on Sunday.
Yesterday, President Obama had this to say:
Let me be clear: the United States government has no interest or intention of running GM.
What!?!?!?!?! Now for the “B” word – bullshit.
I hate to say this, but it looks like the government is calling the shots at GM as well as Chrysler. With GM tasked with getting their creditors to cut deals in 60 days and Chrysler to lock up their deal with Fiat in 30, is there any doubt that Obama via his task force is running both car companies? I wonder if GM will stand for “Government Motors” at the end of this madness…
And Chrysler is going to be an orphan destined to the junkyard…maybe…
Fiat’s chief arrived in Detroit today to hopefully finalize the deal with Chrysler. Here’s what the Detroit Free Press says:
Under the revised terms of a proposed alliance between Chrysler and Fiat, the Italian company would take an initial 20% stake in the U.S. automaker, down from a 35% stake under its January pact, according to a person familiar with the transaction. Also, Cerberus Capital Management will lose its equity stake in Chrysler as a condition of the Treasury Department’s bailout deal with the automaker, according to several people familiar with the matter.
I’ve said this before and I’ll say it again – I think that Chrysler has not enough time or money to put any aspect of this deal to good use. And if the deal doesn’t get signed, Chrysler will definitely be gone.