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Wednesday, October 26, 2016

Reuters reports that Chrysler’s sales have outpaced European carmaker — and Chrysler parent company — Fiat’s sales in recent months. According to the analysis, Chrysler June earnings ($155 million) were only slightly less than Fiat’s three month total (Fiat earned $175 million from April through June).

These impressive numbers have enabled the once-troubled American company to pay back its debt to the United States government well ahead of schedule; Chrysler was not expected to pay back its debt until 2017. Furthermore, the 2008 deal was supposed to cost American taxpayers $40 billion but will now only cost them $1.3 billion , a relatively low cost considering the high stakes of the deal and the tens of thousands of jobs saved.

These numbers must come as a surprise to the many Republican politicians who came out strongly in opposition to the government bailout in 2008. For example, Richard Shelby, an Alabama Republican, referred to the intervention as merely “delaying [the auto industry’s] funeral.”

Similarly, other Republicans thought that the 2008 bailout would stymie innovation and do no more than prolong the decline of the American auto industry. In an editorial for The New York Times, Republican 2012 presidential frontrunner Mitt Romney declared that if the bailout went through, we could “kiss the American automotive industry goodbye.” He went on to say that if the bailout passed, it would fail to reverse “the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses.”

The most recent reports seem to prove the former exec whose candidacy is predicated on a history of turning around failing businesses wrong, as Chrysler has come out more successful than its European buyer. Instead of costing American taxpayers tens of billions of dollars, the overall auto rescue effort has saved millions of jobs and preserved an icon of American manufacturing.

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Copyright 2011 The National Memo
  • angryspittle

    Nothing more clearly exposes the traitorous nature of the present GOP than the headline of this article.

  • wildwilly

    Our Alabama Senator Shelby would allow the providers of machinery and vehicles that won the wars that cost the US hundreds of thousands of American lives to dissappear while facilitating those countries we fought and still provide security to to open tax payer subsidized factories for their profit off lowered industry standard wages and benefits.

  • Sherrillrosoff

    It’s interesting that this article, which demonstrates the wisdom of the decision to save the US automaker, has had only two comments so far. While we have heard nothing but rantings from the far right about the actions taken by this administration to save and restructure Chrysler – and save American jobs – here we have factual proof that the right decision was made. Not only has the country benefited, but the automaker has as well – it’s still in business, and turning a profit. It’s paid the us taxpayer back with interest. So why do people think that it’s the republican party that knows business? Why does business even support the republican party when that party wanted the banks to fail, AIG, Chrysler, and is now taking the country to the brink of default?

  • Ken In Texas

    Another perspective: I cannot share your the Author’s enthusiasm for the federal bailout, as there were other methods of saving the company (see below). Meanwhile, everyone ignores the fact that the $40 billion loan went to a foreign auto maker in a “firesale” stock swap and a union(s) contract rescued. Mmmmmm…. What’s next when a private corporation and its unions run a business into the ground? Oh yes, the taxpayers gets to pick up the tab & the pieces because there is precedent. My bet there is more shoes to drop, so let’s see all the details of the deal in the light of day before we give a pass on it. All the while, Geithner (the man behind the deal) & his Wallstreet cronies make a ton of money on the stock deal, while tangentially, the unions are GIVEN a major chunk in Chrysler, and their bosses continue to pour worker’s dues into the Obama reelection campaign. This would hardly pass anyone’s ethnics sniff, and if you are truly objective, was a conflict of interest at its core….I would have preferred the government just contract to buy $40 billion in new cars, trucks and dealer buyouts (rather than the documented political reward given to the Obama supporting dealers), and then sell & finance them at cost around the world. (Who knows, we might even make $1B rather that the lose it noted in the story.) Then we save the company, the jobs, and Fiat doesn’t own Chrysler. Oh, and another thing, where is the cry of moving profits offshore, now?… If the bailout, as structured, was done by a Conservative administration, all hell would break loose in the media and Congress. My, my, the end always justifies the means, when the Libs are pulling the strings? Just more double standards at work here, but go ahead and bask in this form of success! 🙂

  • cminhtown

    Bailouts are usually a bad practice that sometimes work. They should still never be allowed because of the grossly negligent behavior and severe levels of corruption they encourage. Since the average small business owner does’nt qualify for repeated bailouts neither should the big-dogs. I don’t have the right to fleece my successful workaholic neighbors just because I mismanaged my business into the ground. The absolute,indignant refusal to accept consequences for our actions – or lack of action in some cases – is fast becoming a distinctly American trait….and not one we should be proud of.

  • blaksmith

    Did everybody miss this accomplishment midst the foolishness of the debt ceiling debate. Cheers to the forsight of President Obama and the makers of the RoadRunner.

  • Ken In Texas

    No, I think the nation is paying attention quite well thank you, nor missing the point. The Obama structured deal took very little foresight, just a lot of political back room dealing and arm twisting. All to save the Union contracts as currently written, and like the Heath Care Act, hardly transparent. Imagine that?