Drudge Retort: Red Meat for Yellow Dogs
Monday, April 27, 2009

The government, union, and Fiat have joined forces. Now the banks have to deal with their bad bets.

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Just thin those overhead charges on top and trim those unions around the ears and relieve those dept obligations in back.

The real question is the merge a good mix between fiat and chrysler or do they compete with each other.

How can the two help each other out, 90% of all mergers are not good mixes, one gets the shaft and one would think chryler would have learned from the last time.

...one gets the shaft ...

And the other gets front wheel drive?

Fiat has no significant presence in North America, so this could work to everyone's advantage.

after all .... who doesn't want to spend $25,000 on a Yugo built by crabby UAW workers?

This whole thing is kinda whispy and non-specific. Fiat has positioned themselves quite nicely though.

By connecting up with this deal, they have immediate access to the new round of bail-out money from the US gov't.

The only thing that will mess up this deal up is if the future equities turn out to be worthless.

As bad as I hate to admit it now, i am not so sure Chrysler and GM and the UAW are gonna crash completely. And if not, they can only go up from here. Maybe the UAW will trim union rules, benefits and scales in line with the rest of the world, and become a leaner org. too.

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