It is interesting that soon after a big event takes place, the involved people step forward and commonly spill the beans.
Take the bailout of Chrysler and General Motors. The Detroit News have been able to piece together events through interviews it has conducted with some major players of the Obama Auto Task Force.
For example, a merger between GM and Chrysler was closer than anyone ever figured.
We all know that GM ended merger talks with Chrysler in November 2008. But in April 2009, officials of the Obama Administration spent two weeks working on a plan that would have GM acquiring the best assets of Chrysler and keeping one-third of Chrysler’s factories open.
This was about the time when Fiat stepped in and started talking to Chrysler about a partnership. The Auto Task Force looked upon a GM-Chrysler merger as a fallback should the Fiat-Chrysler deal fail.
Other juicy tidbits now coming to the light include:
The Task Force tried to get billionaire investor Carl Icahn to buy Delphi, a major parts supplier. Icahn turned down the urging because the deal wasn’t “sweet” enough. Delphi is now going through bankruptcy.
The Auto Task Force ultimately included about 12 Wall Street lawyers and so-called dealmakers. Wall Street players helped to force a restructuring of the two automakers when GM and Chrysler themselves were fighting it.
The Auto Task Force was split on whether to save Chrysler at all. A vote of the panel was taken concerning Chrysler in Mid-March and it was 4-4.
The Task Force was advised that 300,000 jobs would be lost immediately if Chrysler failed and the government would be left spending billions of dollars paying for pension benefits, health care coverage to retirees, unemployment insurance and more. At that point, it was a no brainer.
Ron Bloom, a member of the Auto Task Force, had to call Fiat CEO Sergio Marchionne in Italy to resolve one major issue.
Concerned that the Fiat-Chrysler deal could fall through, the Task Force opened talks with GM. GM execs showed interest in acquiring Jeep, a couple of powertrains, Dodge trucks and minivans. GM was also considering eliminating Chrysler’s entire dealer network and sell Chryslers through its own (GM) dealerships.
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