With the introduction of the 2013 Fiat, I mean, Dodge Dart, at the 2012 Detroit Auto Show, Fiat has now upped its ownership stake in Chrysler to 58.5%. This is the first model designed and built under Fiat control. Fiat has plans to continue to increase ownership to at least 70% in the next few years by purchasing shares of a union controlled health-care trust.
No doubt the White House will be quick to point this out as a success of the auto bailouts. Is it? That depends upon your point of view. We used taxpayer dollars to bail out what has become a foreign-owned automaker. Hey, whatever happened to the buy American campaign? Not a peep from the unions who received special treatment when Obama sidestepped existing bankruptcy law and crafted their own designed to repay the unions for his election support in 2008.
So maybe you say, what’s the big deal, didn’t we save American autoworker jobs? Actually no. Bankruptcy is merely an action to protect company investors while reorganizing under the protection of bankruptcy laws. Not an end to the company and all of the jobs as was threatened. Normally it is the bondholders who receive the most protection while stockholders lose out first, but not in our lawless world under the Obama regime.
Normally we would see the unions shouting from the rooftops about preserving American jobs, but not in this case. We effectively did the same thing as a bailout of Honda or Toyota. Yes, it’s American workers building the cars here at home, but the profits are going overseas. That’s always been the argument for GM. So what if a large percentage of the parts are foreign, they’re made here and the profits stay here. Sorry, not with Fiat.
What is interesting is the perspective of Americans on this issue. Corporate profits are the epitome of evil these days, yet using our tax dollars to ensure that a foreign corporation has the ability to make them doesn’t seem to matter. In fact, why is it that we have no problem bailing out a failed corporation, even disregarding the fact that it’s now foreign-owned, yet we despise a successful corporation utilizing a legal tax loophole? I mean, I really don’t get it. Handing out money for failure is OK, but if a company that doesn’t require saving doesn’t pay enough taxes, we somehow square that in our minds as acceptable.
Now, I really do get it. The unions stay silent because they got their reward. The White House is happy because they’re redistributing wealth while solidifying their voter base. And the average American citizen keeps whistling dixie while blissfully ignorant as to what just happened because we got to keep our precious jobs which we would have kept anyway, just under another brand name.
This is yet another example of how our liberty is not being stolen away, rather we are eagerly giving it away. We’ll gladly trade away opportunity for security. Thank the lucky stars that Obama came riding in on his white horse and saved us by saving the automakers. It’s not just the investors that got screwed in the automaker bankruptcies, it’s all of us when we accept the idea that we need government to be involved in the free market process.