Government Motors Part II

As I noted previously, the federal government is in the process of gaining effective control of General Motors. I also mentioned that Chrysler was probably going to be next on Obama's hit list. Well, it didn't take long.

Chrysler has as of this morning filed for bankruptcy. (bolds are mine)

Obama vowed the bankruptcy process would be quick, efficient and controlled. A senior administration official predicted it would be completed within 30 to 60 days. The combination with Fiat is also due to close during that period of time.

Yeah, controlled by the government, no doubt.

As a result of that deal, the UAW will own 55% of Chrysler. Fiat will own a 20% stake with the option of increasing it to 35%. The U.S. government will own 8% and Canada will have a 2% stake.

My read on this means the federal government will effectively control 63% of the company, as the UAW is essentially in the pocket of the federal government, anyway.

You can read the entire CNNMoney.com article here.

Bloomberg.com has more here.

Getting Chrysler tied up with a company with the spotty history of Fiat is going to be interesting to watch play out. After all, Chrysler's temporary marriage with Daimler, who is the parent company of Mercedes Benz, did not turn out well, and that company runs circles around Fiat.

Welcome to the car business, Amerika!