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Chrysler Won’t Consider Wind Down, President Says

Chrysler Won’t Consider Wind Down, President Says (Update1)


Dec. 11 -- Chrysler, the third-largest U.S. automaker, won’t consider “winding down” and will return to profitability with U.S. aid, Chrysler President Tom LaSorda said in an interview.

“We’re going to bounce back,” LaSorda said in an interview. “We need a bridge loan.” Chrysler is based in Auburn Hills, Michigan.

Chrysler’s viability has been questioned even if it gets a bridge loan from the U.S. government. CSM Worldwide Inc. analyst Mike Robinet said the best option for the company is an orderly liquidation. Chrysler has asked the U.S. for $4 billion immediately and $3 billion more at the end of March. The company says it can be profitable and begin repaying the loans in 2012.

Without the funds, Chrysler may struggle to make it to year- end as cash is burned rapidly, Chief Financial Officer Ron Kolka said in the interview. Plummeting sales of vehicles forced the automaker to use more cash than planned.

Chrysler’s viability plan submitted to Congress has no considerations of breaking up the company or merging it with another automaker, Kolka said. The company still is seeking partnerships.

LINK: Bloomberg.com: Worldwide

Hope this is true and proves out but I remain skeptical.
 
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