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Mike Stevens | Feb 18, 2009

Following the news that General Motors would be pursuing further financial aid from the US Government, Chrysler is now seeking similar aid - US$5 billion (AUD$7b) - on top of the US$4 billion it has already received.

The USA’s third-largest car maker says it expects the current downturn in the US market to last another three years. Reporting on the progress of its restructure, Chrysler has announced that the concessions it has been seeking from the powerful Autoworkers Union, and from its suppliers and dealers (that the US Administration is insisting upon as a condition of its massive loan bail-out) are now mostly in place.

Chrysler also plans to cut US$5 billion from its outstanding debt, and US$700 million from its fixed costs in 2009.

After an overall 30 percent sales decline in 2008, Chrysler’s sales have dropped 55 percent for January 2009 compared to the same period last year.

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