• Jan 2nd 2009 at 10:58AM
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On Monday, December 29, Chrysler and General Motors were supposed to get the first installments of its allotted funds from the $17.4 billion dollar bridge loans. On Wednesday, GM got it's $4 billion. Chrysler, on the other hand, is still "finalizing the details of our financial assistance." The U.S. Treasury – the body disbursing the funds – didn't have much to say beyond that, either, merely reiterating that it wants to get the deal done within a timeline that satisfies Chrylser's funding needs.

While we wonder what the holdup is, we have no reason to believe that Chrysler won't get its money. It is unlikely that anything has happened in the past three weeks to make the government go "On second thought..." We also wonder how Chrysler plans to meet the next deadline: by February 17, GM and Chrysler need to have submitted plans to demonstrate their long-term viability; on March 31, a putative "car czar" will decide whether those plans are actually worth anything. The idea that Chrysler can demonstrate sound health over the long-term in just 45 days is a head-scratcher, but hey, some folks didn't even think Chrysler would still be here, so that's got to count for something.

[Source: Automotive News, sub. req'd]

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    • 1 Second Ago
      • 6 Years Ago
      Chrysler should not receive a penny. They were doomed the moment they were bought by Cerberus.

      Cerberus will do to Chrysler what it did to Mervyns (retail chain here in California) last year. Mervyns was a stable profitable business when first taken over by Cerberus. Cerberus execs quietly channeled over $400 million in cash out of the company, sold all the land that the stores sat on to its friends - only to lease the stores back and sticking Mervyns with a $8million rental bill to lease land that it once owned.

      Long story short, the deal gave Cerberus hundreds of millions in cash, its exec received huge bonuses, Mervyns went into bankruptcy providing Cerberus a huge accounting loss and an obscenely large tax saving. Cerberus got its big payday, its friend got the valuable commercial real estate, its CREDITORS GOT STUCK WITH THE BILLS. Worst of all, 14,000 people were suddenly unemployed just before last Christmas.

      Unfortunately, I can see this scenario being repeated with Chrysler. Cerberus has no intention to keep Chrysler running. Its probably too late to save the jobs but at least lets not get suckered into sticking more cash into Cerberus' pockets before their inevitable killing of Chrysler.
      • 6 Years Ago
      Chrysler are dead... just split them 50/50 with Ford and GM and give their share of the loan to GM
      • 6 Years Ago
      Balloons are too funny. Chrysler needs to look in mirror for the money.
      Cerberus is triple-loaded.......
      • 6 Years Ago
      SNP, Jens, You two are members of the mediea, right? Thats the only reason I can see for you to continue spewing this moronic, doomsday Nonsense. Only the Media profits by selling the "end of the world" scenario, as that causes more idiots to read the garbage they report, in a self perpetuating cycle of Doom and Gloom. LOL, I love it when people like you contnually quote "sources" without disclaiming who they are or what their qualifications are to even HAVE a quotable opinion.
      Chrysler sold so many trucks,, because to those who actally DID the research, the Ram IS THE BETTER TRUCK! OOoooh! didn't do any yourselves did you?
      New product releases from Chrysler in 09 NEW Ram truck, more power, better economy best in class warranty and design....Road and Track, Jan 09, Dodge Journey, Best in class safety and convenience, with class median economy, Car and Driver, Oct 08, Challenger, award winning design, widest range of power availability, ...ummm, ( means More choices)American MuscleCar Dec 08,
      Aspen and Durango Hybrid, Best in class value, median economy, best warranty
      Aol evaluation of 9 hybrids 3 days ago!
      Again, Your biases are Showing!
      • 6 Years Ago
      And in related news, GM head honcho Rick Wagoner announced his resignation today.
      This shocking twist came on the heels of Wagoner accepting a $3.5B early retirement package from the GM board of directors.
      As he left the GM corporate office, he was heard muttering: "whew! that was close!...."
      He then climbed into his prototype V-18 powered Chevy Appalachian SUV, and sped off while exclaiming: "Hahahah! thanks suckers! so long!"

      • 6 Years Ago
      Who writes these articles? Third graders? How could you sleep at night with grammar like that? "GM got it's $4 billion." There is no apostraphe in "its" if it's possessive. Oh, and these little quote bubbles aren't funny anymore. Autoblog is just trying too hard.
        • 6 Years Ago
        Take the pole out of your ass. This isn't a term paper.
        • 6 Years Ago
        But it is supposed to be written by a professional writer.

        However, the tone of this comment could use a bit of work.
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