Chrysler Seeking $7 Billion In Goverment Aid

Detroit, MI (AHN) - Chrysler LLC is seeking $7 billion in government loans by year's end otherwise it will be at risk of falling under minimum cash levels needed to operate come the first quarter of 2009.

"Chrysler currently estimates that at year end, it will have approximately $2.5 billion available cash on hand," the automaker said in a 14-page plan it was submitting to Congress, according to the Detroit News.

Chrysler had $9.4 billion in cash at the end of June, but has seen that position quickly deteriorate.

The company was not the only automaker to request cash immediately. General Motors is looking for at least $12 billion in government loans to keep operations afloat come next year.

The restructuring plan Chrysler submitted to Congress involves reductions in executive pay, credit costs and labor costs.

"What we need is a loan, a bridge, to get us through a year-and-a-half of tough times," said President and Vice Chairmen JimPress.

Chrysler said that CEO Robert Nardelli already receives a $1 salary and has no benefits, healthcare or otherwise provided by the company.

The automaker has also implemented a salary freeze for white collars workers in 2008 and plans to keep it in place through 2009.

Chrysler, GM and Ford all submitted their business plans to Congress on Tuesday and expect further hearings on the matter later this week.