Fiat says it could abandon Chrysler due to unions

/article/20090415/ANA02/904159997

Very interesting article.

Chrysler is no longer the great auto company that people have fond memories (or bad memories depending on your experience). This is not the company that made the classic Charger, Viper, Wrangler, etc. This is simply another company that Cerberus bought as an investment opportunity and was looking to make money on. Just like house flipping a few years ago. During all of this mess the past several months, Cerberus has been re-structuring its assets so that a bankruptcy of Chrysler does not hurt the remainder of the company. Cerberus wants out of the auto industry! The possible Fiat deal is one of two options they have. If this does not work out, then it is bankruptcy and selling off the individual companies (Dodge, Jeep, Chrysler) and plants. Then Fiat buys Saturn which makes much more sense for them.

I don't blame the UAW because the management of Chrysler signed off on these contracts. Management should know how much they can pay an employee and make a profit. The harsh reality is if this deal does not work out with Fiat (and it is unlikely that it will), Chrysler will be out of business on April 30th. They cannot survive a Chapter 11 filing and will be forced to liquidate their assets (Chap. 7).

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