Nardelli Wants Answer about Chrysler Loans from Government by March 31
In a CNBC interview with Bob Nardelli, the CEO explained that Chrysler needs “some kind of decision” on whether the company would receive another $5 billion in loans by March 31. The decision will help the company plan for upcoming factory shutdown periods and allow it to continue paying suppliers.
Nardelli did say the he is pleased with the auto task force’s involvement thus far. While bankruptcy isn’t off the table just yet, it is still looked at as a last resort. The task force is working in the interest of saving the 40,000 to 50,000 jobs at Chrysler.
A second round of funding for Chrysler’s financial arm was also requested by Nardelli. He emphasized the effectiveness of a $1.5 billion loan that the U.S. Treasury Department made to Chrysler Financial in January. The loan enabled customers to obtain financing who otherwise wouldn’t qualify. Nardelli said “We’ve gone to Treasury and said we need to re-up that amount.”
However, the $5 billion loan is most important for Chrysler right now. The company needs the decision to plan for its suppliers, dealers, and even customers. Nardelli says Chrysler can survive with out the loan, but the choice must be made soon so the company can prepare.
Source: Detroit Free Press