Chrysler LLC on Tuesday insisted it had embarked on a path towards becoming a viable carmaker but said it needs another 5 billion dollars in emergency government loans to weather an economic crisis engulfing the global auto industry, dpa reported.
In a restructuring plan submitted to the US Treasury Department, the struggling carmaker said it had a "fundamental" agreement with labour unions to reduce costs and would focus on electric technology as a "primary strategy" in future.
"We fully understand the need to adapt to significantly reduced annual US sales and to national concerns over energy security and climate change," Chrysler chief executive Robert Nardelli said in a statement.
Chrysler faced a government-imposed deadline Tuesday to submit detailed plans for how it could return to viability. General Motors Corp, which has received 13.4 billion dollars in federal loans, was to issue its own restructuring plan later Tuesday.
Chrysler has already received 4 billion dollars in government loans and must prove by March 31 that it can survive as a company in order to hold on to the emergency funds.
Chrysler had originally asked for 7 billion dollars, and on Tuesday said it would need an additional 2 billion dollars to survive an "unprecedented decline" in US car sales.
Chrysler's car sales plummeted 55 per cent in January. Total US sales fell more than 35 per cent, the worst in 27 years.
...