Events are proceeding quickly now, don't you think? The Federal government has seized GM and Chrysler. The Feds have effectively bought the automotive supply chain. Coming next: Complete government reorganization of the entire U.S. automobile sector, but with a slight twist. This is when full-scale nationalization of the U.S. medical system occurs. All part of a massive bill that I think is being quickly formulated behind closed doors. Call it the US Manufacturing Rescue Act of 2009.
This can't continue. So what better time? People are frightened. We are shell shocked and facing the ultimate economic disaster, so now is the time to act.
GM and Chrysler are seized, management is canned, bankruptcy follows. Labor contracts are torn up, pensions are revoked all up and down the supply chain. In exchange for massive wage and pension cuts, labor gets taxpayer-funded medical insurance and part of their pensions via government programs.
As an aside, people don't get why Fiat would want Chrysler. Maybe the existing dealer network and manufacturing plants that will give them the chance to compete in the largest automobile market in the world? With much lower labor costs and no medical insurance or pensions to pay for, it could very well be a lucrative move.
Update: Looks like Ford will have no choice but to ask for bailout money.
(Thanks, Glenn. And cool, a Wizbank link.)