Marchionne: Chrysler cash burn has slowed down

Sergio Marchionne

Chrysler new Chief Executive Officer Sergio Marchionne said that Chrysler Group LLC has slowed down the pace at which it uses cash after emerging from bankruptcy last month. In 2008, Chrysler went through $9.6 billion in cash.

“We are still burning cash, but it’s slowed down by far,” Marchionne said in an interview with Bloomberg. “The question is how quickly we can stop the bleeding. That is priority No. 1.”

Marchionne declined to give specifics on how quickly the company is using cash in its current status. Chrysler Group LLC is running on the sale of its best assets and $6 billion in financing from the U.S. and Canadian governments.

The CEO said he’s cutting back on inventory and is adding new platforms and engines to redefine the new company’s portfolio. Fiat currently owns 20 percent of Chrysler Group LLC.

– By: Omar Rana

Source: Reuters