Late Tuesday afternoon, Chrysler LLC released details of its plan for short term and long-term viability submitted to the U-S House Committee on Financial Services.
Chrysler 's Chairman and CEO, Robert Nardelli says they need a $7-billion dollar bridge loan by the end of 2008 in addition to $6 billion from an already-approved Energy Department program established to encourage production of fuel-efficient cars.
The company expects to spend $11.6 billion in the first quarter, including $8 billion to parts suppliers.
View a copy of the plan
More details of Chrysler's plans include:
- Suspending company's match portion of the 401(k) plan, terminating its lease car program and increasing salaried employees' contributions to health care costs.
- Producing its first full-function electric vehicle in 2010 and expand to additional models by 2013. Expects to produce more than 500,000 electric vehicles by 2013.
- Cooperating with the government's oversight panel and will providing regular financial information.
- Well positioning itself to begin repayment of the federal loans in 2012'' and under its plan, after making a $1 billion payment toward the government loan, the company will have approximately $12.5 billion in cash by 2012.
-Explanations as to why an out-of-court scenario is a better option than bankruptcy.
The 14-page report says Nardelli already receives an annual salary of $1 and gets no health care, insurance or similar benefits from the company.
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