Chrysler: Credit the Bankruptcy, Not the Bailout
James Gattuso /
“We received confirmation this morning…that Chrysler Group repaid, with interest, by wire transfer to the United States Treasury and by bank transfer to the Canadian government, every penny that had been loaned less than two years ago.”
That simple statement by Chrysler (and Fiat) CEO Sergio Marchionne that Chrysler had paid off its taxpayer loans sparked a victory dance among supporters of the automaker bailout that would have made Snoopy proud. President Obama issued a statement from Europe lauding the “tough decisions” he made to help the firm and made plans to visit a Chrysler plant in Ohio next week for a congratulatory photo op.
Taking a tougher approach, the Democratic National Committee launched an ad campaign attacking opponents of the bailout, saying that if the critics had succeeded, Detroit would have gone bankrupt.
But the pro-bailout jig is a bit misplaced. (more…)