We don’t have the plan, yet, but we already know the bottom line: $5 billion. That’s how much money private-equity-owned Chrysler LLC wants from federal taxpayers to finance its “turnaround plan” submitted to the Treasury at 5 pm today.
Chrysler’s previous turnaround plan, released less than 2 months ago, indicated the company would need about $3 billion on top of the $4 billion it has already received from the government.
Cerberus Capital Management, the beleaguered automaker’s owner, refuses to invest any money in it. The Obama Administration, however, has been unclear about its willingness to dedicate further taxpayer dollars to Chrysler and General Motors, which is also on the brink of bankruptcy.
The government’s initial “loans,” totalling $17 billion, are unlikely to be paid back. Additional loans could suffer the same fate.
(Image of a 1958 Chrysler New Yorker CC licensed by Flickr user daveseven.)