Chrysler may not emerge - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

 
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 11-18-2008, 04:26 PM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,851
Garage
Chrysler may not emerge

Tuesday, November 18, 2008

Nardelli: If pushed into bankruptcy, Chrysler may not emerge

WASHINGTON -- Chrysler LLC CEO Robert Nardelli will tell U.S. lawmakers that, unless the Auburn Hills automaker receives assistance, it could run short of cash to run its operations, according to an advance copy of his remarks.

Even though Chrysler is the smallest of Detroit's Big Three automakers, its failure would have a tremendous impact on the sector, he cautioned in prepared remarks Tuesday to the Senate Banking Committee.

"Given our common supplier base -- at Chrysler, 96 of our top 100 suppliers are common to Ford and GM -- the bankruptcy of any one domestic automaker would place enormous pressure on the supply chain and, consequently, on that company's competitors," he said..

Chrysler needs assistance or it risks collapse.

"We are asking for assistance for one reason: to address the devastating automotive industry recession caused by our nation's financial meltdown, and the current lack of consumer credit, which has resulted in the critical lack of liquidity within our industry," Nardelli said. "Without immediate bridge financing support, Chrysler's liquidity could fall below the level necessary to sustain operations in the ordinary course."

Nardelli said dealers and consumers don't have access to credit, causing a large decline in sales. "At the same time, Chrysler has billions of dollars in cash payment obligations every month to pay wages, to pay suppliers, to fund health care and pensions, all in the range of $4 to $5 billion per month."

If the company were pushed into bankruptcy, Nardelli warned "we cannot be confident that we will be able to successfully emerge from bankruptcy."

"That's why as an industry we are requesting a $25 billion working capitgal bridge to survive this liquidity crisis," he said.

Chrysler's parent Ceberus Capital Management LP "has made it clear that it will forgo any enefit from the upside that would, in part, be created from any government assistance that Chrysler LLC may obtain," Nardelli said. Chrysler is privately held and the company doesn't report its financial results.


LINK: Nardelli: If pushed into bankruptcy, Chrysler may not emerge | The Detroit News | detnews.com

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
Sponsored Links
Advertisement
 
Reply

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Chrysler, R.I.P. rickaren Chrysler/Dodge/Jeep News 1 10-31-2008 04:25 PM
Chrysler LLC Prices New Hybrids Thousands Below Competition rickaren Chrysler/Dodge/Jeep News 0 06-17-2008 09:52 AM
Chrysler LLC Salutes Nearly 200 Dealers That Sold at Least 1,000 Units in 2007 rickaren Chrysler/Dodge/Jeep News 1 04-22-2008 06:25 PM
Chrysler LLC Announces Barrage of New Engineering and Technology Innovations rickaren Chrysler/Dodge/Jeep News 0 04-14-2008 10:48 AM
20 Years of Chrysler Concept Vehicles rickaren Chrysler/Dodge/Jeep News 0 05-25-2007 10:42 AM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome