Foreign owned Fiat continues to benefit from Chrysler taxpayer bailout
With the introduction of the 2013 Fiat, I mean, Dodge Dart, at the 2012 Detroit Auto Show, Fiat has now upped its ownership stake in Chrysler to 58.5%. This is the first model designed and built under Fiat control. Fiat has plans to continue to increase ownership to at least 70% in the next few years by purchasing shares of a union controlled health-care trust.
No doubt the White House will be quick to point this out as a success of the auto bailouts. Is it? That depends upon your point of view. We used taxpayer dollars to bail out what has become a foreign-owned automaker. Hey, whatever happened to the buy American campaign? Not a peep from the unions who received special treatment when Obama sidestepped existing bankruptcy law and crafted their own designed to repay the unions for his election support in 2008.
So maybe you say, what’s the big deal, didn’t we save American autoworker jobs? Actually no. Bankruptcy is merely an action to protect company investors while reorganizing under the protection of bankruptcy laws. Not an end to the company and all of the jobs as was threatened. Normally it is the bondholders who receive the most protection while stockholders lose out first, but not in our lawless world under the Obama regime.