Wednesday, April 21, 2010

GM and Chrysler - Good News At Last

By: Michael Ferrara
The good news today is that GM has paid off ALL of their $6.7 billion in bailout loans, and that Chrysler has actually turned a small profit in the first quarter. Does that mean all that government bailout money was well spent?

Not necessarily. It might have just prolonged the agony, particularly for Chrysler and its parent Fiat. If things don't get better in a hurry for both automakers, they may be knocking on Uncle Sam's door yet again. But it's encouraging news for employees of both companies, not to mention their dealers, vendors and owners.

Most of the cars Chrysler has been selling have been going to fleet sales and rental car agencies. I had the misfortune to drive a Dodge Charger during a recent Florida trip and all I can remember about the car was that it was ugly and it was red. And the interior was so black (plastic) that everything disappeared inside of it. Here's hoping for better in the future. I also got a chance to drive a Chevy Malibu recently and was impressed by the overall quality feel of the car. Would I go out and actually buy one? Nope, but I would recommend that someone in the market for a nice 4-door should definitely check it out, as well as its Buick cousins.

Perhaps the upcoming Chevy Volt will 'spark' something at the GM dealerships. There's a new Jeep Grand Cherokee due out soon as well over at Chrysler. Stuff to ponder while I try to save up for a $500 brake job on my 8-year-old MINI, grateful that I have a good job and a set of wheels under 10 years old!