Chrysler to Run Out of Cash by March 31

American automaker Chrysler says it has enough money to survive through the end of March as the company has reduced costs in every single area and is spending money slower than it did in the previous months. However, this is far from being good news for Chrysler as it represents the first sign that the American company gets closer to collapse unless it receives the requested government funds.

The company is capable of getting through March even without government support, Chief Financial Officer Ronald Kolka said Wednesday according to The Detroit News. "I don't need anything by March 31 more than I have right now," he told the aforementioned source.

Kolka confirmed that the company has worked closely with the US Treasure Department to receive money from bank creditors. "The government is the group that's going to come in to put money, so they have the leverage," Kolka said. "What they're going to do is say, 'Lenders, if you want my money to help Chrysler become more viable or more profitable, you may have to give me something in exchange for that.'"

Talking about the alliance with Italian automaker Fiat, Kolka explained that Chrysler shouldn't count on it and concentrate on its own restructuring plan. Chrysler is facing a March 31 deadline when the government will decide whether to give the company an additional $5 billion loan beside the $4 billion it already approved in early January.

"We don't think we need to count on Fiat, although if Fiat came in, they'd be a significant enhancement to our plan," Kolka concluded, emphasizing the Chrysler should remained focused on its own business.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories