I'm still trying to figure out how Chrysler is "broke". With $5B in the bank, spending money like mad without seeming to hurt their pockets, and projected to at least break even in 2010, and return to profitability in 2011, how are they exactly broke?
I'm nowhere near worried about Chrysler's bank account, especially with Marchionne involved. At least he's no Minimum Bob (Nardelli).
Would YOU pay for someone else's negligence? I dang sure wouldn't!
Unfunded liabilities?
Also, who expects them to break even in 2010 and return to profitability in 2011? If the company expects itself to break even in 2010 that should be taken with a grain of salt. However, if outside analysts expect them to break even in 2010, that would carry more weight.
I'm not saying they won't break even, but the economy is doing pretty much of nothing that government has been telling us it's going to do. Unemployment is way above what it was supposed to be with the "stimulus". Latest March figures show
'unexpected employment drop'... the only employment sector that's up is... you guessed it, Government. 200,000 temporary Census employees hired.
My point is, all the car manufacturers are going to have trouble if people don't start getting back to work and I wouldn't be surprised if all the car companies are in for at least two more years of depressed sales.
But, it's economics, and if we know anything about what the economy's going to do, it comes down to this:
The economy will either go down, go up, or stay the same. Your guess is as good as mine.
