Auto Bailout... Are we bailing out Chrysler or investing in Fiat / Alfa ???

March 26, 8:58 PMPhiladelphia Autos ExaminerTodd Agostini

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If you read any car magazine or any Auto Industry publication you see no pipeline of Chrysler product except what they are bringing in from Fiat / Alfa. According to an Automotive News article they have product scheduled through 2012 that are all Fiat and Alfa product. So are we bailing out Chrysler or investing in Fiat?

It seems that Chrysler will be shutting down their “in house” research and development and retooling their factories to make the Fiats and Alfas. But industry insiders claim to have seen some new cars in their pipeline: a new Chrysler 300, a Hornet (believe it or not), and a new Cherokee.

So here is what this bailout looks like to me:

Chrysler will get a “free” new pipeline of products. In return they will pay to retool factories with money they pretend to earn off of a year or more of Fiats and Alfas that are imported, but will really come from bailout money. During this time they will introduce a new 300, this Hornet thing, and some other stuff marketed to give us a sense of pride in the fact that they were once an American car company. If this doesn’t work then I guess they will finallyclose their doors?

At the end of the day I think there is more in this deal for Chrysler, Fiat SpA, and Cerberus. Looks like Bob Nardelli is a genius after all. He is going to get new product, retooled factories, and keep his company in business. All Chrysler has to do is take on debt that if they don’t pay back they walk away from it with bankruptcy protection.

This is truly a “Sign & Drive" deal !!!

So please leave me your opinion:

Are we bailing out Chrysler or staking Fiat's entrance into the American car market ???