Chrysler cash drains away as crisis deepens: sourcesFri Nov 7, 2008 4:55am EST
DETROIT (Reuters) - Chrysler LLC is rapidly burning
through cash and being driven to prepare for a possible
break-up if it can't clinch a merger with General Motors
Corp or get government funding needed to ride out the
economic crisis, people with knowledge of the situation
said.
Without new funding or a wrenching restructuring,
executives have raised concern about the automaker's
ability to finance its operations from existing cash
beyond the first half of 2009, said the sources, who
were not authorized to discuss Chrysler's performance.
Chrysler has had to pay out over $100 million a month
to support strained suppliers on top of a total $200
million support to sales through dealers in August and
September as it suspended vehicle lease financing, the
sources said.
-snip-