Fix It Again Tony

How will a forced marriage to Fiat help Chrysler survive?

Fiat may not actually be an acronym that describes the reliability of the Italian vehicle, but the car has a poor reputation. How can that make Chrysler thrive?

To pile on insult, it's Fiat that's balking at the proposed merger, as if Chrysler isn't good enough for the likes of Fiat.

The idea is to share Fiat's knowledge of small car technology with an American firm, so that the U.S. automakers can leap ahead. After that, it's up to the geniuses in marketing to sell the things. Fiat technology? Fix it again, Tony. Would an American want to buy such a thing?

Fiat is willing to go through with the deal, provided that the union work force makes some big concessions. Sergio Marchionne, Fiat's CEO, wasn't born yesterday and he knows how to cover his operating expenses. Employing expensive UAW laborers, with all their perks, would only be a drag on profits.

So either the union gives up or Mr. Marchionne goes home to Milan.

If the UAW doesn't accept the offer, they'll have won a moral victory at the cost of thousands of jobs. The Feds aren't going to keep loaning money to Chrysler, and without Fiat, it's time to declare bankruptcy and let whoever wants the pieces to come in and buy.

The U.S. government also wants Chrysler's creditors to be happy with 15 cents on the dollar to pay off debts totaling $6.9 billion, and the creditors are about as agreeable as Fiat.

Business is all about making money. Politics is all about winning votes.

It's looking extremely grim for Chrysler. Without additional financing by the end of April, they may join the ranks of American Motors, Studebaker and Packard.