Chrysler needs more loans, will cut more jobs

Posted February 17, 2009

Chrysler LLC says it needs another $5 billion to survive, and it will cut 3,000 jobs and three vehicle models as part of the restructuring plan it submitted to the U.S. government.

Chrysler originally said that it would need just another $3 billion on top of the $4 billion in government loans it received in December. But it said Tuesday it will need an extra $2 billion to survive the unprecedented decline in the auto industry.

The Auburn Hills, Mich.-based automaker says it has reached fundamental agreements on concessions with unions, dealers, suppliers and lenders to achieve the concessions required by its government loan terms.

Chrysler also says it will reduce a manufacturing shift, remove 100,000 units from production capacity and cut costs by $700 million.


This story is closed for comments.

Oldest First
View all
  • preppykev2004 Feb 17, 2009

    "Only in America" They can apply for unemployment benefits like the rest of us who have lost our jobs.

  • Cat22 Feb 17, 2009

    They should be history. If you can't make money in business, you shouldn't be in business.

  • Only In America Feb 17, 2009

    "Lala-Land", that not the fault of the automakers. You can blame that on the unions.

  • Only In America Feb 17, 2009

    "preppykev2004", do you have a job for all those who will loose theirs? I did not hear of any of the automakers purchasing a new jet for their executives, like the banks did.

  • affirmativediversity Feb 17, 2009

    Let them file bankruptcy!!!!

    Oh and FIRE GEITHNER!!!!

  • makeitright Feb 17, 2009

    NO NO NO NO NO NO and take back what they already wasted from the first one...

  • LaLa-Land Feb 17, 2009

    Wow. Still have that hand out asking for more. Well, it they didn't pay 85K to the person who puts on the lug nuts, then maybe they wouldn't need a loan.

  • preppykev2004 Feb 17, 2009

    They already got bailout money once, so I say tough.....file for bankruptsy like all the other businesses that receive no bailout money. I do not think we would miss Chrysler if they went out of business.

  • bnorris6 Feb 17, 2009

    No surprise here..then they will be back in a few months needing another 5 billion or more...Just another money pit for the American Taxpayers. Can't wait to see how more GM will need. Such a waste of money...