Chrysler faces July cash crunch

Globe and Mail Report on Business ^ | March 15, 2009 | Tom Krisher

[Loyalist]

DETROIT — Even if Chrysler LLC gets additional government loans, it could face another cash shortage in July when revenue dries up as the company shuts down its factories for two weeks to change from one model year to the next, its chief financial officer said.

CFO Ron Kolka, in a brief telephone interview with The Associated Press, said the company planned for the $4-billion (U.S.) it received Jan. 2 to last through March 31. The company is talking with the government's autos task force about getting another $5-billion, and faces a March 31 deadline to complete its plan to show how it can become viable and repay the loans.

Mr. Kolka wouldn't say what would happen if the company doesn't get further government aid, saying only that he's not planning to run out of money.

Chrysler's viability plan submitted to the Treasury Department on Feb. 17, he said, calls for the additional government aid.

[Loyalist]

Oh sweet mercy, when will somebody finally take Chrysler out back of the shed and shoot it?

[rabscuttle385]

Oh sweet mercy, when will somebody finally take Chrysler out back of the shed and shoot it?

Ah, pshaw. They're just emulating the biggest debtor of them all, the United States Government.

[allmost]

LLC

[Lady GOP]

44 Percent Loss And Chrysler Still Gains Ground

The U.S. auto industry continues to labor under its worst downturn of our generation, posting month over month losses above 35% for the fifth consecutive month. According to Autodata Corp. which tracks U.S. Light Vehicle Retail Sales, February 2009 numbers were down 41.3% for the month.

[Gorzaloon]

it could face another cash shortage in July when revenue dries up as the company shuts down its factories for two weeks to change from one model year to the next

This is no time to do that. Maybe they should sell their 2008's first.

[Eric in the Ozarks]

Will the world end if there’s no 2010 Dodge ?

[Caipirabob]

Oh sweet mercy, when will somebody finally take Chrysler out back of the shed and shoot it?

What? Are you implying an entity that employs hundreds of thousands of people CAN'T run indefinitely with sustained billion dollar deficits?!?

That's just not the "American way" these days...

[rabscuttle385]

*Ping!*

[wmfights]

Everytime I see more bad news from the auto makers I can't help but think about how Sen Corker had a managed bankruptcy worked out and the UAW killed it because they figured they could get a better deal later from 0.

If we stop subsidizing these dinosaurs it would be very tough in the short term. However, in the long term the businesses that would replace them would be world class.