Auto Manifesto

October 17, 2008

Chrylser Up For Sale (Again)?

Chrysler, the oft troubled automaker, is rumored to be in merger talks with GM. Why should GM even consider doing such a thing?

As if it didn't already have enough problems of its own, the very idea of taking on a boatload more headaches makes as much sense as trying to teach a pig to fly.

There's no way to sugarcoat it. Chrysler is a basketcase and won't likely survive as an independent. The company makes vehicles the market doesn't want, has too much legacy cost, few products in the pipeline, and most importantly too few paying customers. On top of that the industry already has too much capacity. So there's even less room for mediocrity. It's amazing Chrysler has survived this long. And now it's clamoring for a lifeline.

But why should anyone throw it one? Throwing good money after bad isn't going to turn things around. This is a company that should've died long ago. Now it's a dead man walking.

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