In an interview with CNBC today, Chrysler’s CEO Bob Nardelli said the company’s financial arm needs a second round of loans to accelerate sales to customers who cannot qualify for loans.
Nardelli said that the $1.5 billion loan made to Chrysler Financial in January helped stabalize February sales and helped the automaker offer 0 percent loans on new vehicles. Chrysler sales were down 49 percent through February when compared to the same period a year ago.
“We”ve gone to Treasury and said we need to re-up that amount,” Nardelli said.
Nardelli also said that he would like to see “some kind of decision” from Obama’s auto task force by March 31 on the company’s request for an additional $5 billion loan to fund operations and product development. Chrysler is continuing to operate on $4 billion in federal loans.
– By: Omar Rana
Source: Detroit Free Press