Windsor Star

Chrysler set to cut, depending on loans

- BY GREG BENSINGER BLOOMBERG

Chrysler may need to cut more jobs and trim other costs should U.S. lawmakers fail to approve US$25 billion in loans to help the auto industry develop fuel- efficient vehicles, Chief Executive Officer Bob Nardelli said.

“If we don’t get the funding, we will continue to have to resize and reduce our fixed costs,” Nardelli said in an interview.

“We’ll have to make some tough, gut wrenching trade-offs,” which may include eliminatin­g jobs, he said.

Nardelli joins United Auto Workers leaders and some lawmakers in saying jobs will be threatened without the loans.

The three largest U.S. automakers are working to persuade Congress to appropriat­e funds for the loans, approved in the 2007 energy bill, before a recess at the end of the month for the Nov. 4 election.

Chrysler has pared models, production and jobs this year as its U.S. sales have dropped 24 per cent.

Gasoline near $4 a gallon has damped demand for the automaker’s sport-utility vehicles, minivans and pickups, which comprise 72 per cent of its total sales.

 ?? Reuters photo ?? TALKING TOUGH: Bob Nardelli, Chrysler CEO, says the company is prepared to cut jobs unless $25B in loans are approved.
Reuters photo TALKING TOUGH: Bob Nardelli, Chrysler CEO, says the company is prepared to cut jobs unless $25B in loans are approved.

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