That makes about as much logic as paying out $30 million and then go running to congress to beg for billions to bail them out.

Here’s a novel idea, why don’t American citizens go to Washington, DC, encircle the capitol and tell the politicians to: FIX IT!!!!

Unfortunately, those bonuses were negotiated long ago, and Chrysler is legally obligated to pay them out. Kinda like how union workers are currently make $75/hr. Everyone has to live with the agreed upon compensation until it’s time to re-negotiate.

Chrysler has given itself to Krautz by Eaton, because Eaton and board were scared of Iaccoca coming back and improving shareholders equity. They were in good shape, Johnny’s memory is perfect in that regard. Lee could made them even better, but that was not management objective.

Lot’s of German hatin’ going on too. It’s a fair point, Daimler never really saw the merger as being a company of equals. But Daimler go its due as well: It bought Chrysler for over $30 billion and sold it for $7 or $8 billion, or around there. So, unless the Germans raked in $30 billion of profit selling Neons, they have egg on their face too.

And if you really wanna lay blame, look no further than Chrysler mgmt. that wanted the merger in the first place. At the time, minivans, trucks, and Sebrings were flying off the assembly lines; Chrysler had solid double-digit market share, whereas Mercedes had something like 5%. There was no need for the merger, and the only thing that Chrylser got out of it (platform sharing, drivetrains, etc.) could have been accomplished with contracts, and not a corporate merger.

But, hindsight is 20/20, so what can you do? You can make it harder for undeserving execs to pay for their private jets, that’s what.

Typical New America: nobody is responsible but everybody wants a bonus for failure or success. I think we could use a good crash to re-align our attitudes.

Jim

I didn’t think so.

Um, I’d say if that’s the case, maybe you’re getting the wrong people. I honestly think people prefer security over bonuses. In order for one to secure one’s job, one needs to be willing to work, and do one’s job very well. Perks and bonuses are great, but I really don’t think they are a good means of retention. I stay with my job when I feel challenged, when I accomplish things, and when I get recognition for my work. I never get bonuses, and I’ve been at my job for 15 years. The other people that have been here for any length of time have the same work attitude that I do, and none of us receive free retreats, big bonuses, so on and so forth. If you need to give bonuses in order for people to stay, then there is no loyalty to begin with, and the first challenge will send them running.

What a great argument for lending taxpayer support.

This is like those AIG execs who went for luxury spa treatments after scoring their big government bailout.

Firing management should be a precondition for federal aid.