January sales figures show why Chrysler should not receive additional government funding and should liquidate. Its sales were down 55% from last January, as compared to 32% for Toyota, 40% for Ford, and 49% for GM. The company has a five month supply of vehicles just at its facilities, separate from dealer inventories.
If Chrysler shut down, it would greatly help GM and Ford as Chrysler buyers would tend to gravitate to the remaining two American-based auto makers, making them more viable and reducing if not eliminating the "need' for further government aid.
A Chrysler liquidation would be a gutsy and bold move by the Obama administration. It would also infuriate the UAW. As such, don't count on it.
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