Although Chrysler LLC, which is owned by private equity firm Cerberus Capital Management, is not obligated to release its finances, CEO Bob Nardelli shed some light on the company’s finances during a Congressional hearing on a possible $25 billion loan to domestic automakers.
From what Nardelli revealed, there wasn’t cause for much optimism. During the first three quarters of 2008, Chrysler lost $5 billion; $3 billion of which stemmed from third-quarter losses alone. If that weren’t enough, Chrysler needs at least $5 billion to pay its monthly bills. The latest financial information shows that as of September 30, the automaker had only $6.1 billion.
To help keep Mother Mopar afloat, Nardelli is asking for a $7 billion slice of the proposed $25 billion bailout. That cash infusion, perhaps along with a new presidential administration that’s sympathetic to the automakers’ needs, will be the one of the few ways to keep Chrysler fiscally stable.
Source: Automotive News