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Automotive News & Views Can Chrysler Turn It Around in Bankruptcy?
464 messages, Last post on Oct 02, 2009 at 2:05 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: fezo (Dec 11, 2008 7:07 pm) |
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Replying to: nippononly (Dec 15, 2008 12:55 pm) So whats your point? |
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"Chrysler Financial allows dealers to put money into the cash management account and pays them 2% interest. The money is then used to make payments on the loans dealers take out to buy new cars. In the letter, Mr. Gilman said more than $1.5 billion has been withdrawn from the CMA fund since July. "Continued significant levels of withdrawals from CMA could potentially force us to temporarily suspend wholesale funding," he wrote. He asked dealers not to withdraw "beyond what's absolutely necessary." Chrysler Warns Dealers About Loans to Fund Car Inventories (WSJ - may be a flaky link)
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Replying to: steve_ (Dec 17, 2008 2:16 pm) Any bets as to whether they ever reopen?
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Replying to: fezo (Dec 17, 2008 2:38 pm) the article I read on this used an "if" in a rather ominous spot, I thought: That means Chrysler will drop an additional two weeks of production if workers return on Jan. 19. It also said this, more ominous stuff: Nardelli told Congress the company would end 2008 with $2.5 billion cash on hand. He said the company will owe suppliers $8.0 billion in the first quarter alone. ........He said Chrysler burned through $1 billion a month in the third quarter. So the cash burn rate even at little ol' Chrysler, half the size of GM and Ford, is roughly the same as those two giants of industry. I guess the question of IF Chrysler plants will reopen in late January will be answered by what the Prez finally decides about giving the domestics some of the financial bailout money. Certainly by the time Obama takes office it will be too late to save Chrysler if nothing has been done up until then. Of course, I am still wondering if Cerberus will drop some money into Chrysler once its back is REALLY against the wall.....
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Replying to: nippononly (Dec 17, 2008 9:35 pm) They may have to sell or hock some performing assets to raise the dough to fund Chrysler. They may decide to cut their losses instead.
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Replying to: steve_ (Dec 17, 2008 9:48 pm) Certainly, articles on the subject always play up the angle that Cerberus BY CHOICE will not plow any more money into the company.
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Replying to: nippononly (Dec 17, 2008 9:50 pm) 
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A reporter from a large national newspaper would like to know if the recently announced auto industry bailout makes you more likely to consider purchasing a car from Ford, GM or Chrysler? If you are interested in talking to a reporter about this topic, please respond to jwahl edmunds.com with your daytime contact information by the end of the day today (Friday, December 19).
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Replying to: KarenS (Dec 19, 2008 9:23 am)
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