Good morning, Netizens…
Chrysler, the third-largest automotive manufacturer, will seek bankruptcy protection and enter an alliance with the Italian automaker Fiat, the White House announced Thursday. According to my memory, it is the first time since 1933 and the days of the humble Studebaker, that an automotive manufacturer has filed for bankrupcy.
President Obama called the deal “a new lease on life” for the troubled auto maker, and promised a quick, surgical bankruptcy.
One presupposes that the union members and the bondholders for Chrysler would never dissent in such an agreement, but I could be wrong. More details and perhaps a better analysis of the bankruptcy are forthcoming.