Wednesday, February 25, 2009

Obama's Task Force Meets With Chrysler Seeking $22 Billion More

Forbes: Top executives of Chrysler LLC were meeting Wednesday with members of the Obama administration's auto task force, discussing requests for billions in new loans to keep the troubled automaker afloat.

Chrysler Chairman and CEO Bob Nardelli, Vice Chairman Tom LaSorda and Chief Financial Officer Ron Kolka were meeting with the administration panel, said a Chrysler official, who spoke on condition of anonymity because the talks were private.

What they're asking for:
Struggling to survive, Chrysler and General Motors Corp. (nyse: GM - news - people ) have received $17.4 billion in federal loans. They are seeking an additional $21.6 billion to keep operating during a difficult recession and a major plunge in auto sales.

Auburn Hills, Mich.-based Chrysler has received $4 billion in loans and wants another $5 billion in federal aid and the approval of an alliance with Italian automaker Fiat (nyse: FIA - news - people ) SpA.

The company said in a Feb. 17 progress report to the Obama administration that it needed the loans to stave off a liquidation of the company. The automaker lost $8 billion last year.