“The only reason we are not making money on the net is that I pay interest on the borrowings I took from the government and I have money in the bank to cover that debt. Actually, against the Treasury we owe them nothing. We have enough cash to pay it all off. But you can’t run a business without cash, so it’s just a function of our capital structure. If we had taken those funds as equity as GM did, we would have been making money, net, right now.”
Sergio Marchionne, explaining the financial situation of Chrysler, according to Reuters. Come on, Sergio, you need to take your GAAP course. In America, we call this EBITA and throw a big party. Chrysler is set to report second-quarter results on August 9.
Bonus quote: As far as a Chrysler IPO goes, no hurry for Sergio.
“I am waiting for GM to go first — they are bigger.”