Nardelli: Chrysler will fail without government support or alliance

Posted: Nov 15, 2008
Filed under: Chrysler, Industry News

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.

Source: Reuters

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  • JC Boston
    Let it fail.
  • Freakin wrong
    $30M in bonuses and yet they company may fail...WTF...
  • zermatt
    "...bankruptcy in the auto industry would be worse than an airline bankruptcy."

    Oh, I don't know. Could we start with GM and see where we go from there?

    Unless the "disappearing three" file for Chapter 7 bankruptcy I don’t see the dire outcome that Nardelli predicts. When the airlines filed for Chapter 11 bankruptcy the world survived. What is Nardelli and the other members of the Detroit Wheels street gang worried about? Could it be that the Detroit Wheels are in league with the UAW?

    Listen Mr. GE or is it Mr. Home Depot or whatever, you have begging for money down. What you haven’t learned yet is that if you are claiming to be fighting for your life, you need to be taking actions that will prove to the taxpayers you are sincere. How about starting with executive pay cuts? What car lines / factories will you eliminate? Where are concessions from the UAW?

    It seems to me that the Detroit Wheels and the un-American UAW is looking to maintain business as usual and will only make concessions if the government requires it.

    What a bunch of jerks. Screw them.
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