Chrysler plan to Congress requires $7 billion in loans to ward off death

Filed under: Government/Legal, Chrysler, LLC., Earnings/Financials

We've already seen GM and Ford issue their pleas for government loans, and now it's Chrysler's turn. The only privately-owned automaker of the three released a 13-page document outlining the aid it seeks from the Feds and how it plans on spending our hard-earned cash. If you want to read the full text, it's available after the jump. But the condensed version follows.

Chrysler is requesting a $7 billion "secured working capital bridge loan" by December 31st, citing the collapse of the light-duty vehicle market, the U.S. financial crisis and the global downturn in the economy as reasons it needs cash. It estimates by the end of the year it will only have $2.5 billion in working capital in the bank and that's not enough to keep the lights on through January.

The Cerberus crew is touting its partnerships, including those forged between Nissan, along with future plans to share platforms, components and "factory rationalization." It's also citing more employee cutbacks, an annual salary of $1 for CEO Bob Nardelli, and lack of bonuses for 2009 as steps the automaker has or is taking to keep costs at bay.

The section on "Providing Cars and Trucks People Want to Buy" covers plans to bring 24 major products to market between now and 2012, including a range of hybrid and electric vehicles covering "Neighborhood" EVs, City EVs, Range-extended EVs and a battery-powered EV. The latter will be assigned to government and business fleets for evaluations purposes in 2009, with sales supposedly beginning in 2010 and 500,000 examples being produced by 2013. For 2009, 73% of Dodge, Jeep and Chrysler vehicles will boast improved fuel economy over their current counterparts, some of which will be Flex-Fuel capable and the automaker is on target to offer 50% of its fleet in FFV guise by 2012.

There's no mention of consolidating, selling or killing brands, further employee cuts or the reduction of Chrysler's bloated dealer network. We get the impression that Nardelli and Cerberus are saying "We've done all we can, we just need some cash." But draw your own conclusions - if you dare - after the jump.

[Source: Chrysler]

Continue reading Chrysler plan to Congress requires $7 billion in loans to ward off death

Chrysler plan to Congress requires $7 billion in loans to ward off death originally appeared on Autoblog on Tue, 02 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

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