 |
||||||
| Friday, November 20, 2009 |
Contact Us
|
 RSS
|
|||||
|
|
| |
|||
|
||||||
|
||||||
|
|
ANALYSIS
March 2, 2009
Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
March 2, 2009
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
March 2, 2009
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
March 2, 2009
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
|
|
|
|
March 3, 2009 3:53 PM ET
(Reuters) — Chrysler's vice chairman said today that the company was confident it would get new financing from the U.S. government but would be forced to liquidate if it failed to do so. Last month Chrysler asked the U.S. government for an additional $5 billion of loans to complete its turnaround, funding that is necessary for it to complete an alliance with Fiat. It has already received $4 billion of emergency loans and would need more support if markets deteriorate further. "We are hopeful and quite positive, confident that we have met all of the requirements," Chrysler Vice Chairman Jim Press told reporters on the sidelines of the Geneva auto show. "And we are currently working with the different constituents to assure that we are making the concessions necessary to be in line with the requirements to have the loan funded." Press was blunt about the alternative. "If we become nonviable and we don't get funded, then we liquidate," he said. Chrysler has reached a point in discussions over a proposed alliance with Fiat that will allow the U.S. automaker to make some planning decisions on models, production locations and the timing of launches, Press also said on Tuesday. "We are in the process now of our due diligence phase," Press said of Fiat. "We will determine our next steps after we finalize the request we made to the U.S. government for a bridge loan. We anticipate at this stage that March 31 is when the disposition of the loan will be finalized." However, Chrysler still has other options if the discussions fail to result in a formal alliance with Italy's Fiat, Press said. The companies have been working toward finalizing an alliance that would give the Italian automaker a 35 percent stake in Chrysler and access to the North American auto market. The alliance would also give Chrysler the access to small-car technology and overseas markets that it now lacks. But Chrysler, which is under a March 31 deadline to prove to the U.S. government that it can be made viable, must obtain additional government loans before securing other options, Press said. Fiat Chief Executive Sergio Marchionne was also attending the motor show, but Press said there were no plans for a formal meeting between the two. Fiat reviewed and was comfortable with the plan Chrysler submitted to the U.S. government in February, Press said. Separately, Fiat's Marchionne told reporters that he would be visiting Washington this week to meet with members of the Obama administration's auto task force. The structure of the alliance being considered between Fiat and Chrysler would allow the U.S. automaker to have flexibility to set its product strategy and to determine where new models will be assembled, Press said. The two companies are in exclusive talks, but Chrysler would have other options for alliances and partnerships if it does not complete a deal with Fiat, Press said. "Since there is no firm agreement with Fiat or anyone else, we can't firmly say yes or no to anything," he said. General Motors, which had held talks about a possible merger with Chrysler last year, called off consideration of such a deal in November. "General Motors has made it quite public that the merger is off the table," Press said.
|
|
|
|
CRAIN'S BENEFITS OUTLOOK 2009
SPECIAL REPORT
MOST POPULAR
|
MORE ANALYSIS
Crain Financial Group:
InvestmentNews |
Pensions & Investments |
Workforce Management
Copyright ©2009 Crain Communications Inc
All rights reserved.
Privacy Policy |
Terms & Conditions