Comments on: Fiat-Chrysler Deal Hinges on Obtaining $3 Billion in US Loans

By: artichoke

artichoke — Wed, 21 Jan 2009 19:16:00 +0000

The US is just as capable and just as smart as before.

But the competition got stronger.

That's why we are now losing. It's a financial crisis but also real diminution in our competitive position. We won't get back where we were.

By: charlie

charlie — Wed, 21 Jan 2009 13:21:00 +0000

FIAT is one of the great stories of our time. First, they snooker $2 billion out of GM in 2004. Then, the partner with Ford (and steal some management from VW) and come up with the New 500 — which is based off a Ford Kaa (and the GM money) Now, they want to use Chrysler to get an American factory and dealers, but they do a deal with Cerebus, not with Daimler, who would love to get rid of their stake. Ford must be delighted that the kaa-derived 500 is coming to the US, since it is one of those city cars that Ford won’t sell here. I believe Ford, given the benefits problem the Kaa wouldn’t make any money — but Fiat can make money selling it if the US government gives them cash.

They’ve been in bed with every Euro-American car company, and they are still playing. Amazing deal ability.

By: bg

bg — Wed, 21 Jan 2009 06:58:00 +0000

"Ahem, it is Cerberus in particular who ought to pony up dough, "

I am sure the above statement is right (I personally don't know the details.) But doesn't Cerberus have an absolute right to cut its losses at there current commitment by letting Chrysler fail? Isn't it in Cerberuses interests to minimize losses on an obviously bad deal?

I don't have a lot of sympathy for the situation they find themselves in, but I do believe in the rule of law, and an even hand.

By: john bougearel

john bougearel — Wed, 21 Jan 2009 06:56:00 +0000

Hey Yves, You look great in that color!

By: Anonymous

Anonymous — Wed, 21 Jan 2009 06:54:00 +0000

Picking up on Mervyn King's "oiling the wheels" to improve liquidity, there is another way to make fluids flow. That is to filter the fluid in order to improve the viscosity, i.e. remove the less viscous components so that the remaining fluid flows faster. Simply adding more "thin" fluid (QE) is far less effective. The so called "toxic assets" inhibiting the velocity of money flows are like grains of sand rather than just less viscous fluid and should be filtered out asap because the whole system (or some parts(Bear, AIG etc) will seize up. Only after removal of contaminents should fresh oil be added.

As sand is of only negative value in such a system its removal should not reward those who put it in.

Because adequate filtration has not been carried out, it is now necessary to permanently remove major components of the engine system, namely many of the pumps (aka banks). Failure to perform proper maintainance at the fluid level (aka clean filters) means mechanical repairs will now be required and maybe even full shutdown for a period.

Expect runs on several currencies while our leaders try to decide how to do this.

Joe the maintenance man.

By: YK

YK — Wed, 21 Jan 2009 06:19:00 +0000

From the inaugural address: “We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished.”

Judging from the state of the US auto industry, does the above statement fit Harry Frankfurt’s definition of bullshit?

By: Anonymous

Anonymous — Wed, 21 Jan 2009 05:54:00 +0000

Eh. Auto news generally bores me. It's like watching a half dozen senior citizens at a retirement home and speculating as to-

1. Who will die next?
2. Who might get a transplant?
3. Who my chop out another organ?

-Snore...tinged with horror. I'm sure this will be a reference analogous to something relating to Atari pong in 100 yrs hence.

Stand back and let nature take its course.