Monday :: Oct 27, 2008

Chrysler Valued at $0, to be Sold to GM

by paradox

The Dept. of Energy, using funds not allocated for this purpose, allegedly is going to loan GM $5 billion dollars to purchase Chrysler. For appearances sake a sale must go through for some value of assets, I suppose, but right now Daimler accounts for Chrysler with zero value. That’s right, nothing.

Of course we the taxpayers get on the hook for another five billion bucks, a drop in the bucket compared to the insane amounts Treasury has “loaned” in the last two months, but still there.

As I’ve written before I expect this day to come to Ford and GM, too, in one degree or another. Falling oil prices may be a savior for a short while, but Ford and GM have proven themselves to be chronically mismanaged, government intervention will be a good thing, no one could have done worse than the management of Ford and GM in the last 40 years.

[h/t Atrios, thank you.]

paradox :: 3:14 PM :: Comments (3) :: Digg It!