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April 30, 2009
"The way they worked was that the boss, Paulie, would start a business or join a business as a partner and buy things on store credit, but never pay for it. They would sell everything they bought out the back door at a discount. Once they had borrowed all the money from the bank they could and were out of money they would burn the place down for the insurance. It did not matter that they sold products for less than they bought them for since it was all profit because they never paid for anything." Henry Hill from Goodfella's, 1990.
Chrysler is in the hands of the UAW and Fiat. This is weird, because I thought Fiat was gone, and everyone blames Union's for companies failing.
Chrysler created the mini-van. The mini-van is a franchise. I know it is a product, and a brand, but the mini-van is representative of a system. The mini-van is the soccer mom is the American middle class. A system, can be franchised. A couple of NJOY NOW soldiers have kids and drive mini-vans. They are both Honda Odyssey's. Good work, Honda. Shame on Chrysler. What happened?
Chrysler manufactures Jeeps. Jeep is an institution. Every American has owned a Jeep, or has at the least been in one, many times. Jeeps are as patriotic as military vet's and baseball. Jeep is a brand, and Jeep dealers make a wonderful living on their franchises.
Mercedes and Chrysler "partnered," before Daimler-Benz gave Chrysler to Cerberus. Why did Mercedes decide it was better to sacrifice an American auto maker then use them to build their business beyond the luxury market? Chrysler is an American franchise, and the greatest luxury automobile brand in the world, Mercedes shredded it, then walked away.
Why have we allowed Fiat!?! to acquire Chrysler? How many Americans have heard of Fiat? How many humans (American's, German's, Italian's) even realize Fiat exists? The next Alfa Romeo I see on a Chicago street will be the first Alfa Romeo I have seen in 10+ years. Why are they involved in the bankruptcy and restructuring of an American automaker?
If Chrysler needs a partner in the automobile industry, and no doubt they do, why Fiat? Couldn't we engage, convince or bully a Toyota into this? What about Hyundai? There are companies that are forward thinking that actually sell cars to Americans that might actually help Chrysler fight out of this mess. Companies like Toyota and Honda are franchises, and brands that represent quality, safety and efficiency. What does Fiat mean to an average American?
I've bought Chrysler's, and have liked them. We own a Jeep Cherokee now. We all have owned or know someone that owns a mini-van or Jeep. Why couldn't we find a management and finance solution that was more viable then what Mercedes did? Mercedes neglected a fine company, then handed it/Chrysler off to a venture capital firm, Cerberus, and walked away. Cerberus was not an auto maker or marketing company. Name a Cerberus brand or franchise? Now name one automobile made by Fiat?
Are we letting businesses like Fiat take the booze out the back door, while setting the building on fire?
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