NO SMOOTH RIDING - AT 9:12 A.M. ET:  From the Detroit News:

Fiat Group SpA CEO Sergio Marchionne is ready to walk away from a proposed alliance with beleaguered Chrysler LLC if the automaker's union workers do not agree to concessions that would put their pay on the same scale as workers at U.S. plants owned by foreign car companies.

In a story posted today on The Toronto Globe and Mail's Web site, Marchionne said not getting concessions from the UAW and CAW are a breaking point for talks.

"Absolutely we are prepared to walk," he said in the story. "There is no doubt in my mind. We cannot commit to this organization unless we see light at the end of the tunnel."

Fiat and Chrysler have been in talks in which Fiat would give Chrysler billions of dollars of small-car and engine technology as part of an alliance that could keep Chrysler out of bankruptcy.

COMMENT:  With GM being moved toward bankrupty by its federal nannies, we could see a doubly whammy in the coming months - a bankrupt General Motors and a Chrysler with no partner for the future.  The psychological effect on the economy could be enormous. 

You hear many people saying it:  Who wants to buy a car from a bankrupt company?  This is the view, even as President Obama assures us that the government will back warranties.  Can you imagine what the trade-in value of a car made by a bankrupt firm would be?  And Obamacare has yet to fix its first transmission.

April 15, 2009