Chrysler’s $11 Billion Bailout
Chrysler claims they need $11 billion to help them get through 2009, even though they haven’t introduced a model line up to justify such a loan. At least they didn’t fly to the meeting this time.
Chrysler is in last place when it comes to asking Congress (again) for money – as they came in behind GM and Ford with a restructuring plan to help them though the next two years. The $11 billion will be used to produce “seven to nine” new models but have yet to confirm what those models actually are. Chrysler has been touting their EV electric car line up at the auto shows, but those only consist of three vehicles (Chrysler EV minivan, Jeep EV and Dodge Sport EV). Chrysler CEO Bob Nardelli, like the Ford and General Motors owners, has pledged to work for only $1 and take no health/insurance benefits.
Chrysler may have to drastically cut their production by January of these funds are not put into action. As for the pay back? 2012 is the date when the loan return must begin – we’d hate to see the interest on that number. For Chrysler’s sake let’s hope the Mayans were right.
Leave a Reply