Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Michael Eden
The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing

With the current contract Chrysler has a negative net value. The only three options are:
1. Chrysler is dissolved
2. Chrysler ownership is retained by the government
3. Chrysler ends up owned by the UAW.

I think number three is the most likely. There is a slight chance that the government will throw in a few billion extra "free of all strings" (cough, cough) except for the UAW contract to help someone else buy it, but I doubt that anyone is stupid enough to pick that up after how the government has changed the rules on the banks.

Now a question: If the UAW owns Chrysler, how can they be be seen as unbiased among the car companies when negotiating? Will they have to split into two different sections, one to own Chrysler and one to represent the workers at Ford and GM?

10 posted on 04/24/2009 12:31:26 PM PDT by KarlInOhio (No free man bows to a foreign king.)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: KarlInOhio

Good analysis. Don’t disagree.

Fascism seeks to maintain some semblance of private ownership - even though that ownership be a shell with the government in near total power.

Obama will, of course, want fellow leftwing ideologues to be in place for day-to-day operations. Who better than the UAW?

No private investors are going to want to touch this turd.


11 posted on 04/24/2009 12:35:29 PM PDT by Michael Eden (Better to starve free than be a fat slave. Semper Vigilanis)
[ Post Reply | Private Reply | To 10 | View Replies ]

To: KarlInOhio

I vote for option #1: Chysler is dissolved. Seems the best. Somone might buy the good parts: Jeep brand, Dodge Truck. Whoever buys certainly WON’T buy contracts, pensions. The brands can live this way, which is best for consumers.


13 posted on 04/24/2009 12:45:38 PM PDT by Jack Black
[ Post Reply | Private Reply | To 10 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson