Skip navigation

Tag Archives: Automakers

I’mreally going to go out on a limb here.  Ive been trying to get excited and worked up about this bankruptcy, but can’t seem to get too exercised.  I have exposure to Chrysler Financial, which surprisingly rallied on news of the filing. I also have exposure to the auto supply chain, which does worry me.  So I should be a bit rattled. But it seems like this will be well managed and “surgical”, a term which sounds really silly.

I was a bit discomfited by the plans for the UAW to hold 55% of the equity, which immediately appeared to me to be a case of the lunatics running the asylum, or my like the unions, running business.  Right, uh, that is exactly what we have.  But a colleague laid out the excellent logic of handing the mess to its creators.  Perhaps now the unions will have a greater incentive to manage the company to profitability and not to employee benefits.  I would that it were that clear.  I still despair that the UAW will not in fact be any different.

At any rate, I cant get too exercised. perhaps because there is a measure of inevitability in it all.  I do wonder if Chrysler was the first because of its private equity ownership. I cant help but think that this has something to do with it.  We’ll see how it all rolls out.