Chrysler could face July cash crunch
Posted on March 15th, 2009 • by Bill Cawthon
Ron Kolka, Chrysler’s chief financial officer, told the Associated Press that, even with the government loans, the automaker might face another cash shortage in July when the company shuts down for model break.
Model break, the period when the assembly lines are shut down to allow the tooling and fixtures needed for the new model year to be installed, means a two-week interruption to critical cash flow.
Kolka would not speculate on what might happen without additional government aid, but said he did not plan to run out of cash. He reminded reporters that Chrysler has planned very conservatively and can be viable even if the annual sales rate falls to 9.1 million, the slowest pace in almost three decades.
