ANALYST: Chrysler can't survive even with gov't aid

[Corey]

Originally Posted by ducati_atx

why not just let the company die?

pretty sure we could do ok without pontiac, buick, and chrysler.

Not sure about the Chrysler situation, but GM is in a bind with Pontiac and Buick (and any of their other subdivisions). There are laws in many states that protect dealerships from GM pulling the plug on one of their brands. I don't recall the specifics, but if they were to shut down Buick or Pontiac, they'd have to pay out the nose to compensate the network of dealerships that carry that product. If Chrysler went tits up and declared bankruptcy, I believe that would be a different situation.

[ducati_atx]

Originally Posted by Corey

Not sure about the Chrysler situation, but GM is in a bind with Pontiac and Buick (and any of their other subdivisions). There are laws in many states that protect dealerships from GM pulling the plug on one of their brands. I don't recall the specifics, but if they were to shut down Buick or Pontiac, they'd have to pay out the nose to compensate the network of dealerships that carry that product. If Chrysler went tits up and declared bankruptcy, I believe that would be a different situation.

Which is why they need to file Chapter ?? (insert 13 or 11 there) so that they can bypass those and close down brands.


Pretty damn sure hummer can go too.

[DLIT]

Does this mean that they're gonna get their bailout money, the higher ups will do what they please with it, and then the company will just wither off and die?

[Corey]

Originally Posted by DLIT

Does this mean that they're gonna get their bailout money, the higher ups will do what they please with it, and then the company will just wither off and die?

No, it means they'll get their bailouts, the higher ups will do what they please with it, and they'll be back again this time next year lobbying for another bailout because they're under the impression that the world will explode without them.