Chrysler's Financial Outlook Grim

Ok, well, not GRIM, maybe just dark? Not that great? Does that make you feel better?

CEO Robert Nardelli announced that the company's 2007 financial report would not be a pleasant thing to look at, and the word is that without the 10 billion dollars that they received from their Cerberus acquisition--you would be hearing the most feared word in business---bankruptcy.

Ouch.

This is a huge surprise--considering how well-known Cerberus is in terms of being a hugely successful private equity group--but it certainly has not played out yet as the storybook ending many people thought it could do for Chrysler. Nardelli, who used to head up Home Depot, had joined Chrysler earlier this year, but saw vehicle sales not reach expectations and issues with the cars themselves cause the company much more overhead than targeted.

This also couldn't have come at a worse time for the American economy, which has already faced credit issues on many larger scale business fronts, and with such a mainstay like Cerberus being heavily involved in something that seems so stark in comparison to their other investment stakes, it's anyone's guess where this could go.

Article Source: WSJ.com

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[ READER COMMENTS ]

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db said:

I can't beleive that the feds have bailed out the privatly owned Chrysler equally as it has bailed out the public companies... They are not considered one of the big three anymore or shouldn't be anymore...
They sold out long ago and should be on thier own - managed by Cerberus (the thee headed guard dog at the gates of hell... thier own hell!

what else should tax payers pay for without seeing any tax cuts or suppliments from our governments...

Is anyone paying attention here or have we all lost interest in the lies...

Posted at 12:29 PM, on February 2 2009

Chrysler's Financial Outlook Grim

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