Late last year, the Federal Government agrees to lend money General Motors and Chrysler in a bid to help struggling automakers to avoid bankruptcy. These funds, however, are considered to be a stopgap measure that will give only a temporary reprieve for the two companies.
Chrysler, again, is asking for money, this time in the form of a five billion dollar loan, saying the automaker will help the company get through summer sales period. But, to the Government, continue to bail, automakers? A Chrysler is what is necessary to survive long-term in itself?
Giving money every big business is fraught with risks as the Government of the United States is considered a greater share of each firm, taxpayers are saddled with the responsibility to keep these companies afloat. However, in a given time, will offer continuing support be perceived as lifelines good after bad?
In the case of Chrysler, there are several reasons why money should continue to be transmitted and other reasons why it must be stopped immediately. To keep everything in perspective, I'm offers three options for the Federal Government, although there is some overlap between them:
Gives Chrysler money-clearly, the Government of the United States can give Chrysler money and hope for the best. With Congress and the Obama administration in security we realized and with damaged AIG receiving tens of billions of dollars, how can provide five billion to Chrysler hurt?
Gives Chrysler money but....--the Federal Government can give Chrysler money but then attach a number of strings of this request. In particular, the feds can order Chrysler restructuring through bankruptcy or Shepherd the company through its planned ALLIANCE with Fiat. Executive salaries and bonuses should be impeded and the Government to force the automaker to retain as many plants as possible, while limiting the will.
Refuse to loan to the Chrysler-already the recipient of billions of dollars of aid money, the Federal Government may simply turn down the request and Chrysler to determine how the automaker will make goes forward markets.
One option proposed by analysts is for the Federal Government to walk the Chrysler and General Motors bankruptcy and subsequent merge automakers. GM will go to drop a few marks, Chrysler will disappear with the exception of the Jeep and the new, lighter Gm will be in a better position financially goes next.
Not that I think everyone in Washington is listening to me, but you need some kind of strong resolution for Chrysler. Time is of the essence, the longer we wait probably options will be limited.
Matthew c. Keegan was a free writer, who resides in North Carolina. Matt is a contributing writer for the Andy's auto sport supplier how quality parts, including Jeep bracelets and Dodge Ram bracelets.
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