Chrysler is Doomed

More

This is the damning-with-faint-praise conclusion of Chrysler's "Determination of Viability Summary" (a phrase sure to make Antonin Scalia wince):

While the Company has made meaningful changes to its cost structure in the last few years, the combination of a fundamentally disadvantaged operating structure and a limited set of desirable products make standalone viability for the business highly challenging. As a result, the President's Designee has found that Chrysler's plan is not viable as currently structured. However, to the extent Chrysler can develop a partner who would improve Chrysler's scale, bolster its product development, and allow it to enter the small car market with a robust set of products, Chrysler has some prospects for long term viability. 

The administration is cheerleading for a partnership with Fiat, but the fact that Chrysler has "some prospects" for long-term viability if it achieves four unrealized goals doesn't fill me with confidence that Chrysler will be around for long. Indeed, the company has just 30 days and $6 billion to sort this out.

All of the new auto industry documents are after the jump.

gm-chrysler fact-sheet.pdf


Jump to comments
Presented by

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism. He was previously a fellow at The Atlantic and an editor at The Guardian. More

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism, an economics blog that was recently published in book form by Simon and Schuster. He was previously a fellow at The Atlantic and an editor at The Guardian. He is also on Twitter.
Get Today's Top Stories in Your Inbox (preview)

A Delightful, Pixar-Inspired Cartoon About the Toys in Your Cereal Box

The story of an action figure and his reluctant sidekick, who trek across a kitchen in search of treasure.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Juice Cleanses: The Worst Diet

A doctor tries the ever-popular Master Cleanse. Sort of.

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Video

What If Emoji Lived Among Us?

A whimsical ad imagines what life would be like if emoji were real.

Video

Living Alone on a Sailboat

"If you think I'm a dirtbag, then you don't understand the lifestyle."

Feature

The Future of Iced Coffee

Are artisan businesses like Blue Bottle doomed to fail when they go mainstream?

Writers

Up
Down

More in Politics

Just In