Chrysler Crony Capitalism?

by Crocker on May 27, 2009, 10:56 am

in Economics,Politics

Is there a massive scandal here about to pop? Or pure coincidence?

But based on the evidence thus far, it’s beginning to look like the closure of Chrysler dealerships was done purely along political lines. We’ve had reports for a week or so about the apparent illogic of the closures.

First, profitable and successful dealers are on the chopping block. Second, people in the business are scratching their heads about closing any dealerships. Dealerships, after all, cost Chrysler nothing and provide upstream revenue. Third, there’s some indication that Chrysler management didn’t make the closure decision. Rattner and his crew did. Finally, when we lay out the paperwork and see who got the chop, an interesting pattern emerges.

The ones getting the chop appear to be all Republican campaign contributors. Small wonder that the fired dealers have hired Arnold & Porter to fight this out in the bankruptcy court. 

Doug Ross at DirectorBlue has done yeoman’s work piecing together all the disparate threads (be sure to read all the updates). Rather than try to reproduce it here, it’s better that you go over there. He’s on top of the details.

Also, if you have time, you might heed his call for research help to sort this out.

Related posts:

  1. Crony Capitalism Hurts, Don’t It?
  2. Negotiating the Obama Way
  3. Dealing with the Mob
  4. Facing Down a Bully

{ 1 comment… read it below or add one }

Scott May 27, 2009 at 9:43 pm

This is Rahmbo’s MO . . . lest we forgot that only days after the inauguration he orchestrated the power-play to put the Census Bureau and the all important 2010 Census under the auspices of the White House. Why not have some “soft-purges” of Republicans? Coincidence, uh, no.

Leave a Comment

Previous post:

Next post: