More On the Automakers Bailout

Some additional items appeared in the Determination of Viability Summary for both Chrysler and GM. One was an emphasis on small cars. Yes, at the moment, Americans are buying small cars. But if the price of gasoline stabilizes at the current levels for a period of 24 to 36 months, then Americans will quickly revert to buying large vehicles.

There is just something about bigness and the American market for cars. I can't explain it - I have always driven small cars. But anyone that believes that Americans will willingly emulate European tastes in automobiles is either not conversant with Americans' buying habits or knows something that we don't. (At what price will gasoline be set at using taxation? ;-)

One glimpse of reality did shine through though when the Chevy Volt was mentioned. The Volt will not save GM, and they had the sense to understand that. Good well appointed cars like the Malibu and decent well built affordable small cars like the Cobalt will. Small and midsize SUVs and decent trucks will save GM. And continuing to make the Buick name a star in the Chinese market will save GM (Buick is big in China).

As far as Chrysler is concerned, Fiat might be able to save Chrysler. Will Fiat be willing to do that?