Butch Lugrod’s Manopia

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The GM-Chrysler Debacle

with one comment

So, General Motors wants an extra $10 billion from the Federal Government so that it can finance a merger with Chrysler. This is a horrible idea. First, it is the government — my government — financing the destruction of a major American corporation. Those jobs will disappear; maybe not right away, but they are definitely going away. This is not how my tax dollars should be spent.

Second of all, it has yet to be explained to me how exactly this would benefit General Motors. Chrysler has almost no properties that could interest GM. It is generally held that the Jeep line is the crown jewel of the Chrysler lineup, but it is definitely not worth $10 billion. What else can GM point to that would add value to their bottom line?

  • The Dodge Ram? GM already has strong truck lines in the Sierra and the Silverado.
  • The 300? I think Cadillac has this covered.
  • The Dodge Charger or the Challenger? The Camero, Corvette, and Pontiac G8 are probably better.
  • Minivans? There is some value here, but this is a market that is being overtaken by crossovers, of which GM already has a strong lineup.

All that GM would get out of this deal is the cash that Chrysler has left on hand, Jeep, and a bunch of automobile lines which are inferior duplicates of what GM already produces (some are even duplicates within the Chrysler family!)

The American people would lose the following:

  • Jobs(!)
  • $10 billion
  • Choices in the market

Contact your member of Congress and tell them that you oppose this deal.

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Written by Butch

October 29, 2008 at 10:53 am