I have to agree with the Atlantic when they say that the only reason Chrysler is still allowed to exist is so the UAW can keep their members from losing their jobs.
This question was asked recently by a seasoned political reporter of my acquaintance. Frankly, I hadn't realized that anyone else seriously believed there was any other reason to bail out Chrysler. But let's go through a couple of the other stated rationales, to see why I find them so implausible:
Her rationals are spot on especially if you look over the bankruptcy deal and find that the UAW suddenly owns a controlling share of the company. I have never seen a company delivered to its union in such a way.
You can also see that the secured debt holders, Cerberus, and the American tax payer might eat a 100% loss on the deal as well. In return we get an Italian company trying to sell retooled Fiats to Americans who frankly won't buy them unless gas prices are at $5 a gallon. Even when that happens Toyota will still eat them for lunch and Nissan will lick the plate.
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