New York Times on Chrysler

12.

May 01, 2009 6:49 am

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Eventually survival of Chrysler depends on willingness of the consumers to buy its cars. Partnership with Fiat envisages Chrysler making small Fiat cars for the American market and Fiat using the Chrysler distributor organization for its sales. It is doubtful if any of the Fiat cars today are suitable, namely as good as or better than Honda and Toyota, for the US, therefore there is little sense in this partnership.

The Government, however, is supporting the partnership; in this case it would have been better to reach a compromise with the lenders, rather than avoiding blinking and driving the company to Chapter 11 bankruptcy. Bankruptcy, by its very nature, is a slow process. It will be not easy to show that even under Chapter 11 protection Chrysler will generate sufficient cash for survival.

— Aharon Meytahl, Vestal, New York