Chrysler is Doomed

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


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.

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