Chrysler’s Nardelli Meets With Auto Task Force Today

Business Materials 25 February 2009 23:31 (UTC +04:00)

Chrysler LLC Chief Executive Officer Robert Nardelli is meeting with President Barack Obama's autos task force today to discuss the company's request for $5 billion in new loans, people familiar with the matter said, Bloomberg reported.

Nardelli is being joined in Washington by Vice Chairman Tom LaSorda and Chief Financial Officer Ron Kolka, said the people, who asked not to be identified because the talks are private. General Motors Corp. executives led by CEO Rick Wagoner will meet with the panel tomorrow, people have said.

The sessions will give automakers a chance to show how sales have worsened since they were approved for their first installment of $17.4 billion in aid in December, said analyst Michael Robinet of CSM Worldwide Inc. The 10-member task force has the power to force a bankruptcy filing by GM or Chrysler.

"The automakers have too much inventory for this sales rate, and they need to bleed off that inventory before they can start producing again," said Robinet, who is based in Northville, Michigan.

Obama's task force is led by Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers. A Treasury Department spokesman, Isaac Baker, declined to comment when asked about the Chrysler session. Chrysler spokeswoman Lori McTavish also declined to comment on the meeting.