(Reuters) – President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, Bloomberg reported, quoting people familiar with the matter.There's so many layers here, it's easy to go soft on this news. If you'll notice the links, I got it from Yahoo!, who got it from Reuters, who quoted Bloomberg.
That looks like 14 billion dollars down the deficit hole. There's more.
Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can't form an alliance with Fiat SpA, Bloomberg said, citing members of Congress who have been briefed on the subject and two other people familiar with the administration's deliberations.Why Chrysler would want to partner with Fiat is beyond me. I don't have much experience with Fiat automobiles except for one little sports car that a buddy had at Fort Knox back in the late '70s. He worked on that thing more than he drove it and when he left to go on a hardship tour to Korea, his wife sold the damned thing. That little POS wouldn't run for more than about a week without both us us under the hood with my tools getting greasy.
I learned to hate that Fiat and I rejoiced the day it sold. I've never cracked the hood on another since, and don't intend to ever work on one again.
At any rate, it looks like GM is going to be the latest in a long line of American automakers to go under. They'll join such luminaries as American Motors, Studebaker, Rambler, Stanley, and a host of others who have gone tits-up since cars were invented.