Our tax dollars at work - Chrysler now owned by the Italians
Talk about an executive fiat -- from
Open Market:
The Great Italian Auto Bailout � Courtesy of U.S. Taxpayers
At the beginning of 2014, Detroit may be bankrupt, but they�re cheering the five-year-old U.S. auto bailout in Italy. That�s because after being the beneficiary of billions in U.S. taxpayer largesse, Fiat, the leading Italian auto company, is going to buy its final stake in Chrysler from that other big bailout recipient, the United Auto Workers (UAW).
�Chrysler�s Now Fully an Italian Auto Company,� reads the Time magazine online headline. But wait a minute! Wasn�t the bailout supposed to be about saving the American auto industry?
As John Berlau and Mark Beatty wrote in The Daily Caller in November 2012, after presidential candidate Mitt Romney made the controversial claim that Fiat would be expanding production of Chrysler�s Jeep in China (a claim that turned out to be correct):The real outrage arising from the 2009 Chrysler bailout is not that its parent company, Fiat, is planning to build plants in China. It�s that the politicized bankruptcy process limited Chrysler�s growth potential by tying it to an Italian dinosaur in the midst of the European fiscal crisis. The Obama administration literally gave away ownership of one of the Big Three American auto manufacturers to an Italian car maker struggling with labor and productivity issues worse than those that drove Chrysler to near-liquidation.
As we noted in the piece, much of Chrysler�s profits from its overhauled line are going to prop up Fiat�s failing, money-losing Italian business, rather than to expanding production and jobs in the U.S. Moody�s had downgraded Fiat�s credit rating to �junk� even before the Obama administration arranged for it to acquire a Chrysler stake, and in Autumn 2012, Moody�s gave Fiat another downgrade that the Financial Times described as even �further into �junk� territory.�
Around this time, Barron�s put it like this in a headline, �This time, Chrysler could bail out Fiat.� Actually, the Barron�s headline is slightly misleading in one respect � Fiat didn�t contribute much of anything to the Chrysler�s bailout.
All this on our dime -- making sure the 30,000 union members get their fat pensions and insuring a solid bloc of Democrat voters. No concerns for what this actually does for the financial health of America or the majority of Americans.
Posted by DaveH at January 2, 2014 11:07 AM