Chrysler says it could go under without loan
Chrysler CEO Robert Nardelli says the automaker needs immediate federal help or its cash could fall short of the amount needed to stay in business.
By Agencies |
DETROIT: Chrysler CEO Robert Nardelli says the automaker needs immediate federal help or its cash could fall short of the amount needed to stay in business.
Nardelli told the Senate Banking Committee on Tuesday that Chrysler LLC pays out $4 billion to $5 billion per month in salaries, bills from parts suppliers and all other costs.
His written testimony says the reorganization costs if Chrysler goes into bankruptcy protection would be higher than if the government gives it a bridge loan. It says Chrysler cannot be confident that it can emerge from bankruptcy.
The remarks are the first glimpse at Chrysler's current financial condition, which many believe to be dire. The Auburn Hills, Mich., automaker is a private company and does not have to make its finances public.
Nardelli told the Senate Banking Committee on Tuesday that Chrysler LLC pays out $4 billion to $5 billion per month in salaries, bills from parts suppliers and all other costs.
His written testimony says the reorganization costs if Chrysler goes into bankruptcy protection would be higher than if the government gives it a bridge loan. It says Chrysler cannot be confident that it can emerge from bankruptcy.
The remarks are the first glimpse at Chrysler's current financial condition, which many believe to be dire. The Auburn Hills, Mich., automaker is a private company and does not have to make its finances public.
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