Chrysler LLC chairman and CEO Robert Nardelli will present a business plan before various committees of the US senate this week to appeal for "bridge financing' for the suffering American auto industry. The plan was submitted yesterday to the Senate Committee on Banking, Housing and Urban Affairs and the House Committee on Financial Services.
Nardelli looks forward to testifying later this week, where he will urge the immediate adoption of legislation to allow domestic automakers to weather the current economic crisis and continue to invest in industry-leading products.
The business plan points out improvements that the automaker made since going independent last year- namely a 30 percent reduction in capacity, a $2.4 billion reduction in fixed costs and the investment of half a billion dollars in product improvements. These measures reduced warranty claims and improved quality ratings, among other things.
Still, Chrysler says it needs government funding to address a massive drop in vehicle sales caused by the financial crisis. Sales are down nearly 40 percent- meaning that shoppers aren't buying, dealers aren't ordering and factories aren't producing. Cash inflow has suffered, and the automakers liquidity could fall below an operationally safe level by 2009 if help is not provided.
The report outlines use of the loan to pay suppliers, wages, and vendors, as well as some $500 million in healthcare costs. Chrysler expects it could repay the loan in 2012.
photo:Chrysler
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| Robert Nardelli, Chrysler LLC chairman and CEO |
Nardelli looks forward to testifying later this week, where he will urge the immediate adoption of legislation to allow domestic automakers to weather the current economic crisis and continue to invest in industry-leading products.
The business plan points out improvements that the automaker made since going independent last year- namely a 30 percent reduction in capacity, a $2.4 billion reduction in fixed costs and the investment of half a billion dollars in product improvements. These measures reduced warranty claims and improved quality ratings, among other things.
Still, Chrysler says it needs government funding to address a massive drop in vehicle sales caused by the financial crisis. Sales are down nearly 40 percent- meaning that shoppers aren't buying, dealers aren't ordering and factories aren't producing. Cash inflow has suffered, and the automakers liquidity could fall below an operationally safe level by 2009 if help is not provided.
The report outlines use of the loan to pay suppliers, wages, and vendors, as well as some $500 million in healthcare costs. Chrysler expects it could repay the loan in 2012.
photo:Chrysler