After receiving a $4 billion aid at the end of last year, James Press' view of his company's prospects has become somewhat optimistic, as he is convinced Chrysler can survive until it gets the extra $3 billion aid without Fiat. And, from there on, " with the full $7 billion in hand, we will not be back for more money,” Press was quoted as saying by detnews.com.
“Chrysler's survival plan is based on a vehicle sales market of 11.1 million”, President Press said. Due to fixed costs and fleet sales cuts as well as personnel cutbacks, company officials hope the current state of its finances will be enough to convince US Government to provide aid. Press insists that company's “viability will be achieved through cost-cutting and concessions from its stakeholders."
That could have been be true, if the only thing Chrysler had to do was go before the Government committee on February 17th and pick up the cash. But that is not the case. The viability report the company is due to submit at the mentioned date is not a formality, but the very basis for the US Government to sanction the loan.
And the Fiat alliance is a vital point on the road to salvation. Without it, the viability report will not be so... viable. recent cutbacks in all levels of its organisation puts Chrysler in a position where it needs Fiat more than Fiat needs Chrysler. The company already has partnerships or agreements with Volkswagen Nissan, General Motors Corp. and BMW AG.