Corporate Welfare
January 5th, 2009 by Jon Taplin
This is what we got for investing $4 billion in Chrysler.
Sales plunged 53 percent last month at Chrysler, which along with General Motors received a $4 billion from the federal government at the end of December to help them remain solvent. It sold just 89,813 vehicles last month, an average of less than one sale per day at each of its 3,300 dealers nationwide.
Since a dealer earns less than $700 per car and probably employs 25 people, this cannot go on for long. This is not an auto company, it’s a corporate welfare scam for Cerberus Capital.
Wasn’t this kind of predictable? The same thing has happened to other auto companies when facing closure – nobody wants to buy vehicles from companies that mightn’t be around any more.
Would you buy a Chrysler? I don’t think I’d take one if they were free…
Wasn’t this kind of predictable? The same thing has happened to other auto companies when facing closure – nobody wants to buy vehicles from companies that mightn’t be around any more.
Would you buy a Chrysler? I don’t think I’d take one if they were free…
You’d have to pay me to take one
You’d have to pay me to take one
I used to have a small Dodge pickup, an Ram 50, and it was great until someone rammed it right where it said to…Oh, yeah, it was a Mitsubishi…no wonder it was decent…
I used to have a small Dodge pickup, an Ram 50, and it was great until someone rammed it right where it said to…Oh, yeah, it was a Mitsubishi…no wonder it was decent…
Jon–I am surprised at you–Cerberus has lost their money here and has said so–they are just trying to do the right thing for the company–hardly a scam–what would you like them to do?–walk away?–put it in chapter?
Jon–I am surprised at you–Cerberus has lost their money here and has said so–they are just trying to do the right thing for the company–hardly a scam–what would you like them to do?–walk away?–put it in chapter?
Cerberus hasn’t lost as much on Chrysler as Mercedes did. I believe they lost 17 billion.
Cerberus hasn’t lost as much on Chrysler as Mercedes did. I believe they lost 17 billion.