“It is a tremendous achievement. It is not nearly as tremendous as man first setting foot on the moon, but it ranks up there.”
— Richard Hilgert, auto analyst for Morningstar in Chicago
I would hope all those who stridently opposed the bridge loans for the domestic auto industry took note of the news today that Chrysler posted an impressive $225 million fourth quarter profit in 2011.
As a result, Chrysler workers, who would have been cast aside by members of Congress in 2008-09 as dinosaurs of the 21st Century American economy, will soon be lining up to collect $1,500 profit-sharing checks.
So much for the predictions on Capitol Hill – and throughout the world of talk-radio – that providing federal assistance to Chrysler and General Motors would be like throwing money down a rat hole.
So, let’s take a look at where we are just 2 ½ years after the Republicans, particularly those Southern senators, were ready to let the American auto industry collapse:
* Chrysler has increased its U.S. market share by 20 percent and paid off its federal loans, with interest, six years ahead of time, while its January sales were up a whopping 44 percent;
* Ford posted a 15 percent jump in market share and has earned widespread praise for producing some of the highest-quality products in the industry;
* GM saw its market share rise – allowing it to regain the title of the world’s largest automaker – even as it eliminated four brands.
For those dullards eager to make snarky cracks about Chrysler actually emerging as a new form of Fiat, consider this: All of those fourth quarter profits posted by Chrysler were generated by Chrysler; none by Fiat.
Btw: A little trivia question for the private enterprise purists out there – Which American auto company currently receives no help from Uncle Sam? The answer: Chrysler. GM still enjoys the influx of equity that came from the U.S. Treasury’s purchase of stock. And Ford, the sudden darling of conservatives in 2009, is enjoying the advantages of $5.9 billion in federal loans to retool their factories so they can produce more clean-energy cars.
Meanwhile, once again, I must ask: When will those Southern senators issue an apology to all of us in Michigan?