Chrysler unlikely to survive, McCain calls Obama a Socialist

Senator John McCain, the race Grand Marshall, chats with media at Phoenix International Raceway, calling President Obama a Socialist

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Arizona Sen. John McCain said Sunday that Chrysler Group LLC is unlikely to survive, despite receiving nearly $15 billion in government loans.

McCain, the 2008 Republican presidential candidate, reiterated his opposition to the $80 billion auto industry bailout begun by President George W. Bush last December.

"No, I don't think we ever should have bailed out Chrysler and General Motors," McCain said in Arizona, where he was serving as grand marshal of at the NASCAR Sprint Cup series race at the Phoenix International Raceway. "We should have let them go into bankruptcy, emerge and become viable corporations again."

Chrysler spokeswoman Shawn Morgan declined to comment on McCain's remarks.

Both GM and Chrysler underwent bankruptcy restructurings this summer, and have since emerged as new companies with healthier balance sheets.

McCain suggested the decision to inject billions into the automakers was because of the political clout of the United Auto Workers union — and other unions.

"It was all about the unions. The unions didn't want to have their very generous contracts renegotiated so we put $80 billion into both General Motors and Chrysler, and anybody believes that Chrysler is going to survive, I'd like to meet them," McCain said. More at Detroit News