GM has warned that it may not have enough cash to survive after mid-2009. FoMoCo’s CEO Alan Mulally said that with Ford’s reserves of $29.6 billion in cash and credit would be enough for the automaker to stay around until 2010. Chrysler has yet to give a timeline, but CEO Bob Nardelli said Thursday that it would be ‘very difficult’ for the his company to survive without government support or an alliance with another automaker in the U.S. or abroad.
Nardelli said that Chrysler’s failure would create an “unprecedented” ripple effect that would cause auto parts suppliers to fail along with GM and Ford.
Nardelli said he shows total support for U.S. government stepping in and providing aid for the auto industry and said that bankruptcy in the auto industry would be worse than an airline bankruptcy.