Chrysler, with a $4bn low-interest federal government loan in the bank, has said it has enough liquidity to survive to the end of March despite slumping sales.
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It had already considered slowing sales when it asked for the loan, chief financial officer Ron Kolka told Reuters. He added the auto maker had the money it needed based on the plan it submitted last year to secure those loans.
“We did a four-year plan and we said we expected overall US sales to fall to 11m in 2009 and 12.1m the following year and we have positioned ourselves for that,” Kolka said.
Chrysler reported December 2008 US sales down 53% year on year to 89,813 units (up 5% versus November’s 85,260 and 2008 sales off 30% to 1,453,122 units.
“Total sales were significantly affected by the industry’s largest reductions in fleet sales, 63% for December and 31% for the year,” it said.
“Last year Chrysler and all of our stakeholders persevered through extraordinarily difficult economic conditions, made the necessary adjustments and always kept our focus on serving our customers,” said president and vice-chairman Jim Press.
“As a result, our company and our dealer network start this year stronger and better positioned to succeed in today’s marketplace.”
“From a customer perspective, we see consumers selecting vehicles based on their long-term transportation needs and committing to keeping vehicles for longer periods. As a result, characteristics such as utility, flexibility, efficiency and quality will grow in importance.
“From an organisational viewpoint, we will work with all of our stakeholders to continue the restructuring our company.”
