F&I Management & Training

Chrysler could run out of cash by the end of this year, according to CEO Bob Nardelli.

The US manufacturer's chief told the Senate committee last week the privately owned company ended the third quarter with $6.1bn (£4bn) in cash, burning through $3bn during the third quarter.

Nardelli said without bridge financing support, Chrysler's liquidity could fall too far to sustain operations by the end of this year.

The company would need $7bn in government loans, he claimed.

Nardelli listed Chrysler's current financial obligations, including $20bn in healthcare, $2bn in annual pension payments to retirees and surviving spouses and $6bn in annual wages.

He reiterated Chrysler owner Cerberus Capital's promise to give up any profits from the potential sale of the carmaker if federal aid was given.

DATED: 24.11.08

FEED: MT