We wish we could have attended the congressional hearings earlier today because from the reports, it seemed to be a pretty heated debate between the Detroit Big 3 and Congress. A Tennessee senator gave Chrysler LLC CEO Bob Nardelli a hard time saying that Chrysler future is a very puzzling one. Chrysler’s main idea behind its restructuring plans is to receive bailout money until it eventually gets bought out by a partner in the future.
“It troubles me to know we’re providing enough capital to help you stay around long enough to get married,” said U.S. Senator Bob Corker, R-Tenn.
According to Automotive News, Corker said that he spoke with a Cerberus Capital Management (who own 80 percent of Chrysler) board member who told him that Cerberus only bought Chrysler and GMAC for its finance business and that Chrysler’s auto business was a plus. Corker went on to say that Cerberus would not make any additional investments into Chrysler’s auto business and he doesn’t see a reason why the government should either. He said that there is no future for Chrysler as a stand-alone business.
Nardelli’s response to Corker? “I don’t agree with that.” He said that Chrysler will pay-off the $7 billion loan it is requesting by 2012.