Chrysler CEO: We're 'operationally' bankrupt

[medbiller777]

Chrysler Corp., the troubled automaker bought by private equity just four months ago, is scrambling to sell assets amid indications of huge losses, as access to cash becomes increasingly scarce, according to a published report Friday.

"Someone asked me, 'Are we bankrupt?'" the Wall Street Journal quoted Chrysler boss Robert Nardelli telling employees at a meeting earlier this month. "Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with."

To raise money, Chrysler is looking to sell over $1 billion in land, old factories, and other holdings, even if it has to let those properties go for under book value, the Journal said.

In an interview with the Journal, Nardelli confirmed the comments and declined to give a financial forecast for 2008, saying only that Chrysler "will make a pretty significant improvement" over the $1.6 billion the company is set to lose this year. The Journal said Nardelli originally hoped to turn a profit in 2008.

The rush to raise capital comes amid constricting access to money as more banks and other lenders face heavy losses related to subprime mortgages.



http://money.cnn.com/2007/12/21/news/companies/chrysler/?postversion

[SumSam]

What a comedown from the Iacocca glory days! :ohno

[PrincessofHeaven]

What a comedown from the Iacocca glory days! :ohno
the glory days are over.....but for a few chosen we will see all the Glory of God. :yeah:yeah

[SumSam]

the glory days are over.....but for a few chosen we will see all the Glory of God. :yeah:yeah

:nod :hat

[logosone]

Clearly, I don't want to see this happen to one of our great American automotive institutions, but does anyone feel totally empathetic for these people? Digressing to another post under new MPG standards, where have we been? The Asian based companies have been packing their lunch for decades!

I personally bought into the "Buy American" propaganda for at least three models that cost me a mint in repair and dime store design flaws, while they were paying people $40 dollars and hour and adding $1500 to the price of every new-built before it got on the assembly line!

I know, people don't want to hear that, but its the TRUTH! It was Ford first and now the rest of them are paying the price. It has nothing to do with being patriotic, it's about business and being competitive, they never got it!

[Bernardd]

--------------------------------------------------------------------------------

Clearly, I don't want to see this happen to one of our great American automotive institutions, but does anyone feel totally empathetic for these people? Digressing to another post under new MPG standards, where have we been? The Asian based companies have been packing their lunch for decades!

I personally bought into the "Buy American" propaganda for at least three models that cost me a mint in repair and dime store design flaws, while they were paying people $40 dollars and hour and adding $1500 to the price of every new-built before it got on the assembly line!

I know, people don't want to hear that, but its the TRUTH! It was Ford first and now the rest of them are paying the price. It has nothing to do with being patriotic, it's about business and being competitive, they never got it!

Not to mention that inflated salaries they have to pay due to Union pressure.

[LoudRam]

It's happening to all the major auto companies. If I remember correctly last year Nissan recalled more vehicles than anyone else. Titans were having problems left and right. The new Toyota Tundra's tailgates are falling off. Welds are cracking on the tailgate. Those two examples are off the top of my head. I'm sure there is more. It's much more than American car companies.

I'm a huge Dodge fan, if you couldn't tell by my name and sig. I'm still hopeful now the Chrysler is out from under the stranglehold of Daimler and really American owned once again. And that's the general feeling at the Dodge message board I belong to.

[logosone]

Hey Ram! Yeah that was a broad swipe. I would never suggest that there are not problems with Toyota's, Honda's etc. but if you look at the maintenance stats and labor issues (in comparison to aforementioned) associated with these compnaies (Ford, Chrysler, GM) it is a fair and deserved assessment. And should we forget that the federal government bailed these people out more than once. That is NOT a constitutionally valid act on any level. But what is at this late date?

[medbiller777]

I hope they don't try to bail themselves out by bringing back the Chrysler K car.:pound:pound

[LoudRam]

Hey Ram! Yeah that was a broad swipe. I would never suggest that there are not problems with Toyota's, Honda's etc. but if you look at the maintenance stats and labor issues (in comparison to aforementioned) associated with these compnaies (Ford, Chrysler, GM) it is a fair and deserved assessment. And should we forget that the federal government bailed these people out more than once. That is NOT a constitutionally valid act on any level. But what is at this late date?

I know you didn't mean anything by it. And I didn't mean to slam anyone by my post either. My point was the problems you cited are happening across the board that's all.