Partner or Go Bust

That's the word to Chrysler from Obama's auto industry task force. Frankly, I'm surprised but pleased that the task force seems to have accepted reality. Here are two excerpts from their report courtesy of The Wall Street Journal.

"Independent financial analysts and industry experts are nearly unanimous in their views that, to be competitive in the decades to come, auto companies will need to transform their processes and products to improve efficiency, reduce costs and offer a higher-quality, more fuel-efficient fleet," the task force said. "These transformations will require substantial investment that Chrysler – according to its own plan – is not capable of making. Therefore, the Administration does not believe that on its own, Chrysler can achieve the scale or depth of product mix necessary to compete in the 21st century global auto market."

"Given the magnitude of the concessions needed, the most effective way for Chrysler to emerge from this restructuring with a fresh start may be by using an expedited bankruptcy process as a tool to extinguish liabilities," the task force said.