Chrysler set to cut, depending on loans
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.