There's been no end of bitching lately about the stubborness of Chrysler's union employees in resisting the concessions demanded by Italian automaker FIAT. But when it comes to the automaker's downfall, there's plenty of blame to spread around and a lot of it goes straight up to the boardroom.
The Washington Post is reporting that Chrysler Financial's top brass turned their noses up to a $750-million loan package from the US government because, "executives didn't want to abide by new federal limits on pay."
The government had been offering the loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, which is racing to avoid bankruptcy. Chrysler Financial is a vital lender to Chrysler dealerships and customers.
In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burdens of the already fragile automaker and its financing company.
Stubborn Fools...pride cometh before the fall
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