We’re living in a global economy.
While the U.S. auto industry supplies millions of people with jobs, the truth is that industry is collapsing. All 3 major U.S. automakers are on the brink of financial disaster with their only hope being a federal bailout.
But for Chrysler, there’s hope from Hyundai.
With talks of the grand GM/Chrysler merger now out the window, Hyundai, that little carmaker from South Korea, is poised to sweep in and buy out Chrysler. Or at least part of it.
Just a couple of years ago the idea of Hyundai taking over Chrysler would have been laughable. Now though, it just might make sense.
Had GM succeeded in their bid to takeover Chrysler, it might have worked to keep the company name around but I doubt it would have saved any jobs. A GM that consists of Chevy, Pontiac, Cadillac, GMC, Saab, Buick, Hummer and Saturn can’t even hold on, so adding Chrysler, Dodge and Jeep would only add redundancy and ultimately lead to massive layoffs. Just like a bankruptcy would.
The Hyundai scenario is a little different, because of the redundancy issue. It’s highly unlikely that the Chrysler of today will remain intact because there are pieces of it that will appeal to other automakers. If Hyundai doesn’t absorb all of Chrysler, it could buy Jeep. Nissan has mentioned buying Dodge.
Under a scenario like this, jobs could stay in America though they’d be managed from an office in Asia. And the Chrysler as we know it would be gone.
Cerberus Financial, the current owner of Chrysler, has said they are not interested in selling pieces of the company. But if they are at all interested in saving American jobs, I think they’ll have to.
I ask you: Are you more concerned with saving Chrysler, or with saving American jobs?