What’s YOUR Solution to Chrysler’s Problems?

[Garibaldi]

It seems there is no good way out for Chrysler. On the one hand, a partnership with Fiat means infusing the company to help make it viable again – but this may come at the price of Fiat dictating some terms about workers’ wages. On the other hand, refusing a deal with Fiat could make Chrysler spiral the rest of the way down. What do you think they should do and why?

Topic

[jonmandude]

Honestly I don’t think there is a solution for Chrysler or GM. They have been poorly run for too long. With the weight of the union pensions, the delay in producing vehicles that compete with the “imports”, and the greed at the top, there is just too much . A bankruptcy may help but, like the bailout, it is only delaying the inevitable. It sucks but it is what it is. Everything runs it’s course. All businesses reach a point where they are beaten by the competition. In industry it is always the need to stay at the leading edge of technology or you will be surpassed by those that do. In GM and Chrysler that time has come. They have had a good run but it is ending. Much like American Motors, Desoto, Auburn, and any other brand you can think of that is no more. The big three pushed many automakers out of business by building a more desirable product, now it is happening to them. The government did not step in to help any of those companies, it should not step in now.

[Eclipse_Tuner]

I couldnt agree more.

Ford, even though they are still a little bit behind, for the most part saw what was about to happen and have been making considerable strides to become viable again. GM is too bloated to make necessary changes quickly, and Chysler has simply been doomed for a number of years. GM and Chrysler simply need to be let to fail and then start over from the ashes.

Sure there will be a bit of fallout, but there are 12 other automakers who manufacture and use the same supplier base as GM and Chrysler, so the suppliers wont go away, just get a little bit smaller.

Businesses, no matter the size, should always be allowed to fail. Otherwise there is no reason for them to self-analyze and adapt.

[jonmandude]

Eclipse_Tuner wrote:

Quote:

Businesses, no matter the size, should always be allowed to fail. Otherwise there is no reason for them to self-analyze and adapt.

One of the best statements I have ever read on the subject

[lordairgtar]

Ford is bringing out decent cars while GM and Chrysler are going hat in hand to the government to get stim money. Didn’t anyone study what happened to the British auto industry once the government got involved?

[GTO Man]

Unfortunately the fairest thing is to let them fail. The government doesn’t bailout other businesses when they go under.

[moparkid25]

I wish GM would have just filed restructuring without asking the gov’t for help.

Then they coulda stuck it back to the UAW – for all the years the UAW stuck it to the car companies.

[Garibaldi]

I heard an interesting view on the government bailout of GM and Chrysler today. If GM and Chrysler had been allowed to go into bankruptcy (as any other company), who would have financed their debt? No bank in this financial crisis could undertake such a big burden. Because of that situation the government would be the institution that would have to provide the funds.

[Author]

Replies