Hot News
for your iPhone
for your iPad
Go to our forums to discuss this news
DATE News (chronologically)
Chrysler faces major July cash shortage
Even if Chrysler LLC gets additional government loans, it could face another cash shortage in July when revenue dries up as the company shuts down its factories for two weeks to change from one model year to the next, its chief financial officer said.

CFO Ron Kolka, in a brief telephone interview with The Associated Press, said the company planned for the $4 billion it received Jan. 2 to last through March 31. The company is talking with the Obama administration's auto task force about getting another $5 billion, and faces a March 31 deadline to complete its plan to show how it can become viable and repay the loans.

Kolka wouldn't say what would happen if the company doesn't get further government aid, saying only that he's not planning to run out of money.

Chrysler's viability plan submitted to the Treasury Department on Feb. 17, he said, calls for the additional government aid.

"Following that, the next critical low point in cash is July shutdown," he said Friday.

Automakers generally book revenue from a vehicle once it leaves the factory and heads for a dealership. But when it doesn't produce cars during the shutdown, the revenue stops flowing. Detroit News

Hot News Archives
2000 2001 2002 2003

Search Hot News
Search Help
AutoRacing1 Inc. BBB Business Review