Chrysler asks for more funds from the US Federal government
By Andrew C., 30 Aug, 2010. 0 Comments
To finance its arm, Chrysler has asked for more funds from the US Federal government, claiming that it can boost sales up to 20 percent if it can offer buyer credit. The US Treasury has already loaned Chrysler Financial $1.5 billion last January. It was not specified how much more financial aid Chrysler is asking for this time.
The record shows that there were 29,000 deals in February and 8,000 last month financed by the carmaker. Chrysler, however, succeeded in selling only 84,050 units in the US last month, the fourth month in succession that demand went down in excess of 40 percent year-on-year. Dealers of Chrysler says that they can raise the demand by 20 percent only if they can provide their customers with credit. At the moment, Chrysler is still anticipating a $5 billion (3.5 billion Pound) aid from the government to ensure its survival in the industry. Chrysler is preparing for the worse though, suggesting that they have not yet hit bottom.
[via autocar]
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