Chrysler needs more loans, will cut more jobs
Posted February 17, 2009 4:47 p.m. EST
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.