Highlights from Chrysler's Official Plan for Short- and Long-Term Viability
Highlights from Chrysler's Plan for Short-Term and Long-Term Viability:
- requesting $7 billion bridge loan.
- Chrysler ended the first half of '08 with about $9.4 billion in cash, implying cash at year-end of $2.5 billion, meaning that the automaker would not have enough cash on hand to make it through Q109.
- "Chrysler remains focused upon developing partnerships, strategic alliances or a consolidation as a fundamental element of its restructuring to expand its product portfolio, generate incremental revenue, and create additional operational synergies related to manufacturing, purchasing and distribution." Chrysler estimates annual synergies once fully implemented could range from $3.5 to $9 billion.
- In its efforts to cut costs, Chrysler has "substantially increased all salaried employees' contribution to health care costs, suspended tuition reimbursement program benefits, and eliminated retiree life insurance benefits." Also, the slide notes that its CEO, Bob Nardelli "receives an annual salary of $1 from Chrysler."
- Details of future revenue drivers: improving fuel efficiency, quality, technology and consumer appeal. "Chrysler viability plan includes 24 major product launches through 2012, including a wide portfolio of hybrid electric-drive vehicles within several categories..."
- If Chrysler receives 1. "a reasonable level of support and concessions from the Company's constituencies", 2. "$6 billion in funds from DOE 136 loan request; and", 3. "the $7 billion bridge loan: the long-term viability of Chrysler will be ensured." Specifically, Chrysler sees worldwide sales increasing to 1.72M in '09, to 1.86M in '10, to 2.15M in '11, and to 2.15M in '12. These levels of sales would leave Chrysler with a cash balance of $7.5B in '09, $9.8B in '10, $11.4B in '11 and $12.5B in '12.
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And the downward spiral begins....
cc on Dec 2, 2008 11:41 PMNot to mention the savings they made by laying off and letting go of bunches of people right before xmas. Who is going to be able to buy cars or anything else for that matter without jobs....