Wednesday, February 18, 2009

Color Me Surprised - Auto Bailout Edition

From The Economist's Free Exchange blog, Chrysler has managed to do exactly what I expected when I unequivocally opposed any auto bailouts:

TODAY, roughly two months after receiving a $4 billion loan from the government, Chrysler reported its plan for a return to profitability. It's a two part plan, based on the press reports: 1) keep doing what they've been doing, and 2) ask for more government money.

The company, which received $4 billion from the government in December to help it avoid bankruptcy, originally planned to seek $3 billion in April. It now says the vehicle market has deteriorated so dramatically that a total of $9 billion is needed.

But the plan does not call for more plant closings, and only three of the company’s models, which were not immediately named, will be discontinued.

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