Chrysler bailout – a very bad idea

As this WSJ blogger  points out, Chrysler is bankrupt for the very good reason that they build awful cars

Did you watch the president’s press conference on Chrysler? It had an unhappy, foreboding air. No standing American president should be opining that the Chrysler-Fiat alliance has a “strong chance of success” or urging Americans to buy Dodge minivans.

These promises are beneath the president’s office. And they set Obama up to throw good money after bad.

It’s not like the president and the taxpayers are backing a business that’s on the cusp of greatness. Chrysler is bankrupt for a reason — in fact, lots of reasons from sub-scale production to a dependence on poor credit customers to a lousy product line-up.

Last night, after being accused by several Mean Street readers of not knowing enough about Chrysler’s line-up, I did more research in Consumer Reports. It was even worse than I thought.

Here was CR: “Many Chrysler vehicles rank at the bottom of our ratings in their categories and none currently meet our requirements for being recommended. Even most newer models have been mediocre in our tests.”

How will the president compel Americans to buy these cars? Especially in the two years it takes for Chrysler to churn out any Fiat originated product?

2 Comments

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2 responses to “Chrysler bailout – a very bad idea

  1. dogwalker

    In any event, didn’t we do that already?

  2. SizeBuyer

    we did it twice and mb did it once