Associated Press dispatch headed “Sources: Obama to give GM two months to restructure” goes on to say “Under the plan, the government would provide up to $6 billion to forge the alliance between Chrysler and Fiat, but if the companies failed to reach an agreement or find an alternative plan for viability, Chrysler would not receive additional aid.”
WATCHDOG: What madness! Is the federal government unaware that General Motors paid over a billion dollars to Fiat just a decade ago to disentangle itself from doing business with what a knowledgeable author described as the second Italian Mafia?
A fellow company of NewsLanc shut down its three Fiat auto dealerships in Hungary rather than go along with Fiat’s violation of contracts and arguably laws.
At the same time, troubled Fiat gave all of the public signs of an impending profitable merger with an American auto maker while privately selling off a large portion of the stock of the founding family at a momentarily inflated price. The value of the stocked plunged to a new low when the merger did not materialize a few months later.
A deal with Fiat would create a direct pipe line for American taxes to this disreputable company.
Chapter 11 would be a far better arrangement for employees, dealers, customers and our country!
Great site!