Gambling on Fiat

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The Chrysler bankruptcy is now official:

Once Chrysler restructures, the company would receive $4.5 billion in financing to restart its operations….That is $2 billion more than Mr. Obama initially said the company would receive if it successfully reached a deal with Fiat.

Chrysler has already received $4.5 billion from the government, under a bailout plan put into effect by the Bush administration in late December….The Canadian government also is expected to provide $1 for every $3 in American support, the official said, meaning Chrysler could receive another $2.6 billion.

So that’s nearly $12 billion in total assistance.  All to prop up a company that, I’ll bet, won’t last two years.  Compared to the vast sums of taxpayer cash we’re handing over to the banking industry practically for free, I suppose this isn’t really all that much, but it’s still pretty hard to swallow since it seems almost vanishingly unlikely that Chrysler will survive in the end.  I mean, does anyone really think that the management genius of Fiat is going to save them?  Fiat?

 

 

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DEMOCRACY DOES NOT EXIST...

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In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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