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Posted by David Sherman on Tuesday, March 31, 2009 at 13:57:35 :
In Reply to: Well maybe pay is the wrong word... posted by Eric B. on Tuesday, March 31, 2009 at 12:39:36 :
In exchange for some of Chrysler's debt, fiat gets dealerships and car factories. From everything I read, there's a great surplus of both right now, and companies are closing both dealers and factories in exchange for absolutely nothing just to be rid of the expense.
The way it used to work in a free market was the failing company went bankrupt, and their competitors got to pick over the bones and buy they useful parts cheaply. I'm still not seeing what harm it would do to let that happen with the auto industry. People are still going to buy as many cars as ever and people will have to be employed to make them and sell them. What's so sacred about brand names all of a sudden, and why is it a good thing for the government to start making day-to-day management decisions for these companies?
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