Cerberus chairman: Senate's CAFE bill unfair to auto industry
It's my equity firm and I'll cry if I want to. Cerberus Chairman John Snow has hopefully for the time being satiated his craving for whine after his address to the Detroit Economic Club. Apparently he thinks he knows all since he helped design the first CAFE standards 31 years ago. Impressive. He stated that the "one-sided" standards, if passed, will put domestic car companies out of business, cost the U.S. lots of jobs, and make him cry. I added that last part.
Not that I don't agree with Mr. Chairman (because I mostly do), but it sounds to me like he is simply restating things Bob Lutz, Alan Mulally and others have already said, thinking that by extension it makes him a legitimate auto industry expert. Let's recall that Cerberus is a private equity firm, who has only recently acquired Chrysler - and will not actually close the deal until sometime in the third quarter of this year - and therefore will not be taken too seriously until proven successful in its investment.
We know it's a lot of pressure trying to turn a car company around to being profitable - especially Chrysler - and we know those gosh darn politicians are being really mean. But whatever happens, you're going to have to deal with it like everyone else, so I'd start covering my bases as much as possible. So for now, let's have less talk and more busy work.
[Source: Automotive News - subscription required]
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