Chrysler Bailout Demands Growing a Billion a Month

Posted February 17th, 2009 at 5.11pm in Enterprise and Free Markets.

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.)

4 Comments

February 18, 2009 Denise, Baytown Texas writes:

This is such a joke

February 18, 2009 Wayne from Jeremiah Films writes:

I have added a link to your post from the articles I’ve put together on “BlogWatch • Has Government spending saved the economy yet?”

http://www.jeremiahfilms.com/BlogWatch/bailout/902181333

February 18, 2009 Mike, Hickory, North Carolina writes:

Here we have yet another example of Socialism which actually shows and proves how “Once you let the malevolent genie of Socialism out of the bottle, you won’t get it back in”.

February 18, 2009 Mike Sez writes:

I say no to any further bailouts for anyone. Let the business fail, file for bankruptcy, be liquidated, sold whatever. If you lose your job as a result, get over it, find another job.

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