Yesterday, Bloomberg News reported that Fiat "is considering building Chrysler models in Italy, including Jeeps, for export to North America." Today, that news became real when company CEO Sergio Marchnionne announced, in Bloomberg's words (in paragraph 6, subtitled "Italy's Jeep"), that it will "build a small Jeep in Italy for export beginning in 2014 ... a new model for Europe and the U.S. that isn’t currently in production."
Of course, today's Bloomberg report led with Marchionne's clever denial about the company's plans for manufacturing in China: "Jeep production will not be moved from the United States to China." No, he has instead set the stage for newer Jeep models exported to the U.S. to gradually supplant older models made in the U.S. over several years. This should be an embarrassment to those who engineered the Obama administration's bailout of Chrysler in 2009, ripping off secured creditors in the bankruptcy process and thereby giving Fiat a larger initial share of the company than it deserved. But don't worry, Colleen Barry at the Associated Press is there with vague language to ensure that this news doesn't become general knowledge (bold is mine):
Executives from Government/General Motors and Chrysler are at the North American International Auto Show in Detroit vaguely holding forth on the prospect of reopening previously shuttered production facilities.
Uh, don't sales have to start heading seriously upward before that happens?
Apparently the Associated Press's Tom Krisher, who has his hands in separate stories on the two companies, and Jeff Karoub, who is co-spokesman -- er, co-author -- of the report on Chrysler, aren't asking that question.
Here are selected paragraphs from Krisher's report on GM's non-announcement announcement:
GM may reopen some factories to meet higher demand
General Motors Co. may reopen some shuttered factories because it can't produce certain vehicles fast enough, its North American president said Monday.
Chrysler's poor June performance also casts doubt on whether the U.S. government's $7 billion allocation will be enough to get the automaker through the U.S. sales slump, which is projected to last into next year.Those doubts are growing. In a report on Chrysler's just-announced management shakeup, AP auto writers Tom Krisher and Dee-Ann Durbin began their report by ringing the alarm (bolds are mine):
With sales down sharply and pressure to start generating cash before government loans run out, Chrysler CEO Sergio Marchionne shook up his executive team Monday, replacing two of his brand managers after just four months and splitting Dodge into car and truck units.
Oh. So. Predictable -- Both what is happening, and how it is being "covered."
Chrysler is barely out of bankruptcy, and there is already concern as to whether the money Uncle Sam, (i.e., U.S. taxpayers) funneled into the company -- while in the process of ripping off and intimidating its secured creditors, capriciously terminating plants and dealers, and running roughshod over long-held notions of fiduciary duty -- will be enough.
Beyond that, how many people know that the magical technology its new owner Fiat, which put no money of its own into the deal, is "more than a year away" from making its way to Chrysler?
"Somehow," the Associated Press's Obamacized news prioritizers decided that the info nuggets contained in the previous two paragraphs should be relegated to the final paragraphs of an unbylined report (also saved at host) this afternoon. The report, including its headline ("Chrysler names remaining directors to new board"), appeared to be merely a droll recitation concerning certain Board members. Only readers getting to the last three of the report's eight paragraphs would have any idea that Chrysler's situation is already a cause for renewed concern about its viability.
Readers here can make what they will of the Board's make-up, but, as noted, the real beef in the AP story is in those final paragraphs (bolds are mine):