Nationalizing Chrysler

Posted April 17th, 2009 at 9.08am in Enterprise and Free Markets.

“Let me be clear: The United States government has no interest in running GM,” President Obama said just three weeks ago. He continued: “We have no intention of running GM.”

But what about Chrysler?

In a letter to employees released late last night, Chrysler CEO Bob Nardelli stated that, under the evolving terms of the company’s deal with the government, “a board of directors for Chrysler will be appointed by the U.S. government and Fiat.” This board, he explained, will appoint its chairman and “select a CEO” and other executive officers of the company.

In other words, all of Chrysler’s decisionmakers will be government appointees. The government will, in effect, run Chrysler. This would be de facto nationalization of the smallest, and least significant, of the Big Three.

“The majority of the directors will be independent,” Nardelli assures us, but that just means they won’t be employees of Chrysler or Fiat. Independent from the federal government and politics? Not so much.

Tagged with bailouts
Chrysler

8 Comments

April 17, 2009 MAS1916 - Denver, CO writes:

This is a very expensive way to kill Chrysler.

Firstly, this is being done to save the UAW contracts in place with the automaker. Filing bankruptcy - which would be the proper thing to do - would allow the company to renegotiate all burdensome deals. They would then have a shot at recovery.

Who in his/her right mind is going to buy a car from a government run company? Who will invest a dollar that she/he cares about in a company that is run by the Obama administration?

Chrysler is headed for failure because of poor business decisions and contracts that are inappropriate for the current economic climate. Obama’s entry into the company won’t solve either of those problems.

April 17, 2009 Worldbfree4me writes:

My question is simple. Where in the hell was the Heritage Foundation when Dubya (W.Bush) was in office spending money, driving the large deficits?

[We were in the same place we are now, opposing irresponsible policy. See our paper archives on heritage.org. --AMG]

April 17, 2009 Tyler Durden writes:

Yawn. Newsflash George W. Bush is no longer in office. Complaining about the past sounds a lot like “old politics” and I thought Obama was about “new politics” and solving problems. Guess not.

April 17, 2009 Ma'at Thoth, USA writes:

Open Letter Response To “We The People”

I have been ready and waiting with $$$$$ in hand to replace my BMW740I with an “American” car since
last Fall…. Waiting for this Bailout B.S. to compost - hoping the U.S.A. Auto Companies would do the more honorable of the two and declare Bankruptcy before taking a “Government” bailout.

I FOR ONE WILL DRIVE THIS CAR/CARPOOL AND WAIT UNTIL HA’MASHIACH RETURNS AND HELL FREEZES OVER BEFORE PURCHASING A CAR FROM ANY “AMERICAN” COMPANY THAT ALLOWS THIS SOCIALIST/COMMUNIST DICTATOR/ADMINISTRATION TO “APPOINT” ANY CEO/CHAIRMAN/PLACEMENT ON THE BOARD OF DIRECTORS!

3 Strikes Against You Chrysler - You’re OUT!!!

April 17, 2009 Kate, TN writes:

I guess it’s time to get rid of my much loved PT Cruiser. Will NOT be replacing it with either a Chrysler OR GM product!

April 17, 2009 DANA (New Mexico) writes:

YOU GUYS FORGET THAT BECAUSE YOU ARE NOT BUYING AN AMERICAN CAR, A SALESPERSON IS NOT GETTING A PAYCHECK, THEN THERE’S THE OTHER PEOPLE THAT IT FILTERS DOWN TO IN THE DEALERSHIP, THE PEOPLE IN THE OFFICE DOING THE PAPERWORK, THE PEOPLE IN SERVICE SERVICING THAT VEHICLE. SMALL POTATOES TO SOME PEOPLE…I DO HAPPEN TO WORK IN A DEALERSHIP AND HOPE AND PRAY THAT MY MENIAL JOB WILL STILL BE THERE TOMORROW. SO THINK ABOUT HOW THAT AFFECTS SOME OF THE PEOPLE NOT AT THE TOP.

April 21, 2009 Barb -mn writes:

It’s an unfortunate thing how the decisions of business and the government effects so many. This is deliberate from the government’s side. Many businesses closed down here due to legislative tax increases on entertainment issues and other frivolous excuses that have nothing to do with need! Just so the government can enjoy the struggle to others who once lived free and fill government’s pockets with greed. This is one of many government procedures to deplete the private sector and capitalism.

Please think about moving on from working for subsidized businesses. And please save yourself by avoiding government employment!

Personally, for all principle matters am unable to do business with any business the government is subsidizing with tax money.

Subsidized businesses show incompetence of the owner and lack of strength to carry on their own. And then a weakness to cry to the government with their hands held out. People have to suffer their own consequences of their own choices…people running a business included.

May 5, 2009 Dragon, USA writes:

It’s time to support Ford.

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