Chrysler: Give us 7 Billion to stay operational

In the letter to congress that addressed the need for federal money, Chrysler CEO Bob Nardelli discussed the need for the money and the plan to A) make it a good investment and B) Keep an American company up and running. The first thing on the docket: 7 billion dollars that is needed ASAP, as the figure that was thrown around was that the car maker would a bit over 2.5 billion by the end of 2008 and it would need just short of 12 billion for the first quarter of 2009's expenditures.

In order to defer these costs and show initiative in getting this money and making it "work", according to Automotive News, Chrysler discusses 24 new product launches through 2012--which would include four distinct types of electric-vehicles, ranging in release times of the first in 2010 and the others by 2013. The company said that is plans to have 10.4 percent share of the U.S. auto market in 2009 and 10.7 percent the following three years. Based on those estimates Chrysler said it will reach operating profits of $400 million in 2009, $2.6 billion in 2010, $2.0 billion in 2011 and $1.8 billion in 2012.

Well, these numbers are certainly nice and all, but what else? Why is the 7 billion to defer the costs of the first quarter kind of "glossed over"? With these figures in mind, Chrysler will look to start repaying the bridge loan in either 2012 or 2013. I wonder how long Nardelli's 1 dollar salary will stretch....

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Chrysler: Give us 7 Billion to stay operational

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