California Autos Examiner

Wednesday, January 21, 2009

Chrysler Needs $3 Billion Dowry

Chrysler needs cash in order to make its deal with Fiat binding. No big surprise really, as one had to wonder how Chrysler was going to continue to weather the storm while new product is readied. What is troubling for some people is why should our government pile in more money when Cerberus and Fiat keep their wallets closed? In a WSJ interview, Senator Bob Corker pondered the issue, "It's an interesting set of questions for American taxpayers, who in essence could have $8.5 billion into Chrysler and the finance company when it is all said and done," Sen. Corker said. With the new Obama administration and Congress having a heavy Democratic slant, more than likely the necessary funds will be approved.

On the surface, this alliance seems to be a good one. Is it worthy of another $3 billion? That's a tough question. As I mentioned before, both Chrysler and Fiat are both divorcees and that has to make anyone a bit nervous. I would feel a lot better about this if Cerberus and Fiat put in some cash of their own.

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