RE: Chrysler halts Renault-Nissan talks, favors GM

["Dennis J." <djohn14296@xxxxxxxxx>]

Bill, I have been following your take on this subject, an are you sure 
you not a economist? LOL. You have hit the nail right on the head each 
time, just like nails in a coffin. I still do not see Chrysler being 
saved, it may end up taking a few more years, but the hand writing is on 
hte wall. Don't we just love the world economy and this new worls 
market. If I worked for Chrysler right now, even as bad as the job 
market is becoming, I'd be looking for another job, call it jumping 
ship, but the higher ups have no problem with walking in one day with 
pink slips and AMF, this is your last day, have a good life. JM2CW
Dennis J.

Bill Watson wrote:
Cerberus owns 51% of GMAC and GM owns the other 49%.  Cerberus wants 
that 49%.   Period.
On the other side of the equation, GM wants Chrysler's cash and the 
government money.
A GM-Chrysler deal would be an economic disaster for North America as a 
combined GM-Chrysler can keep all the Chrysler lines, transfer them all 
to unused GM plants, fire every single Chrysler employee, close all 
Chrysler factories, take all the government money, and continue on as if 
nothing happened.  Probably into oblivion the way GM has been handling 
things this past 20 years.
As far as manpower and plant facilities are concerned, Chrysler is just 
excess baggage.    Chrysler has the Jeep, the Dodge Caravan, the Dodge 
Ram (some say), and $11 billion in cash and marketable securities.  That 
"marketable securities" places the true value of the $11 billion in 
question, IMHO.  Everything else that Chrysler has is of no use to GM as 
they have too many factories, employees and dealers now.
Thus GM's acquistion of Chrysler will result in the single biggest 
employee layoff and plant closings the U.S. and Canada has ever seen.   
Add to that the layoffs and plant closures of Chrysler's suppliers.  It 
will be the equivalent of Chrysler going bankrupt and will be enough to 
bring the economies of this continent to the brink of a depression, if 
not right into it.  We are talking tens of thousands of people losing 
their jobs in one day.
If the Bush administration has nixed the GM-Chrysler deal, it marks one 
occassion they have got it right.   And this is also proof that a car 
company (ie, Chrysler) needs to be run by people who know cars and not 
people with more money than brains (ie, Cerberus).
 
 Bill
 Vancouver, BC


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