Chrysler's Cash Crisis Continues
In an epic feature presentation, Bloomberg reveals that former Home Depot CEO Bob Nardelli beat out Wolfgang Bernhard for Chrysler's top slot by dint of his pessimistic analysis of the biz. Well, he's got plenty to be pessimistic about now; most important of which is, as we've pointed-out numerous times, Chrysler's cash flow. "Nardelli, who spends most weeknights at the Townsend Hotel in nearby Birmingham, Michigan, and commutes home to Atlanta on weekends [ED; who says Detroit execs don't care about their carbon footprint?], gets constant reminders that he's racing the clock at Chrysler. Every day, he and his top executives receive an e-mail from the treasurer's office showing how much cash Chrysler has on hand." Just because he's paranoid… "The carmaker started 2008 with $9.5 billion, a person familiar with the situation says. After tapping a $2 billion credit line from Cerberus and Daimler AG and setting aside $1.6 billion to repay a loan from the United Auto Workers union for a retiree health fund, cash will drop to $7.7 billion at the end of 2009, the person says. Chrysler needs $2.5 billion-$3 billion to fund its day-to-day requirements." Wow, that's a lot of billions! But not, as we know, enough to keep the automaker afloat in these truck-aversive times. Tick tock.
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