Chrysler submits Viability Plan

After GM’s weak ( and stunning ) viability plan, I’m almost loathe to critique Chrysler’s plan.  But that’s what I do, so let’s take a look at the highlights.

  • An extra $2 billion in loans ( bringing the total to $9 billion )
  • Hangs on a pending alliance with Fiat
  • Reduce fixed costs by $700 million
  • Axe 3,000 more workers
  • Umm lots of luck???

Wow.  That’s the plan?  Give us more money, we’ll use it to fire people, mysteriously reduce fixed costs, and also everything depends on gaining access to Fiat’s small cars.  Is that really even a plan?

I don’t like government bailouts.  I like them less when we’re talking about a privately held company.   That’s right, remember this is Chrysler, LLC – not a publicly traded company.  Private investors own this company.  They should be financing any bailout, not taxpayers like you and I.  Thus, I won’t even bother presenting my viability plan here, as I’m against it.

Published on February 17, 2009 in Chrysler

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