|White House sources said Chrysler isn’t viable as a stand-alone company, and without Fiat or more tax dollars, might go into some kind of “structured” bankruptcy. But auto industry analysts say a bankrupt car company isn’t much of a company at all – simply because shoppers don’t want to buy cars from a bankrupt company.|
It’s not a step Obama would take lightly, for sure. But politically, it seems a step he’s seriously contemplating in the face of “bailout fatigue” in the heartland – but also Chrysler’s own specific situation.
The ailing automaker, home to such storied American brands as Dodge and Jeep, just isn’t “systemically important” enough — in the new vernacular of bailout-era Washington — to warrant extraordinary measures to save, the administration declared. The hard numbers are these: Chrysler, in 2008 employed 58,000 people. But General Motors employed many more: 252,000.
“They are, of course, much smaller,” explained a senior administration official Sunday night.
If Chrysler should fade, Obama also could argue that the company brought it on itself.
Slick, now here is where he plays politics on which car company he can fail without much harm to himself. He figures there is going to be public shock about Chrysler going out of business, he comes back after 60 days when GM/unions/bondholders still haven't reached an agreement to give another extension so that America won't have to suffer another car maker going under.