Chrysler Vice Chair: Failure Could Spark Depression

Chrysler's Vice Chairman says that its failure could spark a depression in the U.S. First, foreign cars produced in the U.S. are now greater than domestic cars. So while a (coninued) failure might hurt workers in Michigan, they will likely just be shifted to states like Ohio, Kentucky and Alabama, which produce foreign vehicles.

Second, if he truly believes what he says, perhaps they should work a little harder to point it out to the unions, whose workers make 75% more than those at factories producing Hondas, Toyotas, Nissans, etc. In fact, a chapter 11 would likely make the firms more competitive, not less.