I just read a story on AOL autos that I find disturbing. Chrysler has announced that they have no intention of repaying the massive government bail-outs that were given to them at tax payers expense. Their reasoning. They never received those loans. Those loans were given to the "Old Chrysler" company which is in bankruptcy. But after Chrysler received these loans, they formed a "New Chrysler" company to continue operating under and that if America wants to collect on those debts then they will have to go after the "OldCar Co." While to some this may look like savvy business practice, to me this is more reminiscent of a snake shedding its skin.
In doing this Chrysler has voided all public trust. I would never buy from a company that is so morally and ethically bankrupt. I would not trust them to do business in an honorable manner or stand behind the products they sell.
I would urge every employee of the "New Chrysler Corporation" to demand that the management do the right thing. For them to continue on this path is shortsighted and stupid and will eventually lead to the downfall of the company which will mean more unemployed autoworkers.
On the flipside GM is announcing that it will not only repay the dept, but do it earlier than anticipated and will once again be able to sell stock to the public in 2010. They have an aggressive payment schedule and will be presenting the government a $1 billion dollar payment before the end of this year and repay the remaining 5 billion by the middle of next year.
So which company would you feel comfortable purchasing a car from. A company that is making a strong effort to repay its debts or one that is trying to hide behind some legal loopholes and screw the American taxpayers (you).
Link to the story on AOL.