AUBURN HILLS, Mich. — Chrysler’s chairman cast doubt Monday on whether the struggling automaker could survive a government-sponsored bankruptcy reorganization.
“I hope I’m wrong, but I don’t have a lot of confidence in today’s environment that we can emerge from bankruptcy,” the company’s chief executive and chairman, Robert L. Nardelli, said in an interview.
Chrysler is asking the federal government for $5 billion in loans in addition to $4 billion it had already received. The company says it is in danger of running out of money without more federal aid.
President Obama’s auto task force is considering a variety of options to rescue both Chrysler and General Motors, which is seeking up to $16.6 billion on top of $13.4 billion it has gotten since the end of last year.
Members of the task force, including the former investment bankers Steven A. Rattner and Ron Bloom, met last week with Mr. Nardelli, toured a Chrysler truck plant and reviewed the company’s product plans.
In Chrysler’s restructuring plans, submitted to the Treasury Department on Feb. 17, the automaker estimated that it would require up to $25 billion in government assistance if it were to file for bankruptcy protection.
“Why would the government want to spend $20 to $25 billion, when you can spend $5 billion?” Mr. Nardelli said.
In bankruptcy, a judge could void Chrysler’s labor and supplier contracts and restructure its debt.
But Mr. Nardelli said he feared consumers would shun Chrysler’s cars, trucks and sport utility vehicles if the company sought court protection.
More
So so true, what do ya do? How about the government let the prime failers in this crisis go down; the banking industry, the insurance industry, the auto industry, let them all fail; that won't happen because government policy has bee to let them take advantage of the taxpayer for so long, to deregulate so that they could do well, to prop up the idea that the paper pushing industry is a money making industry, when deep in our hearts we know that no only were our jobs shipped overseas, but we were infact being taxed more and more to live in the paper society that we now belong to. In America we do nothing, we make money doing nothing, we have made money doing nothing for so long that I think it will be hard to change over and make money for actually doing something. Was this all created by design, you bet, the idea that one day fat americans would wake up and find that they had lazily allowed all of their best jobs to be outsourced, that the would had essentially equalized, and that no one nations people will be better off than those of another nation.
ReplyDeleteMaybe the global market is selecting for intellegence, but I doubt it, why would they want someone who has the smarts to raise against them. Take a demotion right now, act very stupid, do not stive for advancement, that way you may succeed in surviving.