As Chrysler LLC scrambles to get its house in order ahead of a government-mandated deadline later this month, the company is apparently pleading with dealers to stock their lots with more vehicles.
Chrysler vice chairman Jim Press on Thursday
reportedly prodded dealers to order more cars as part of the automaker's bid to prove to government officials the company is viable and qualifies for additional federal assistance. The automaker in late December received $4 billion in bridge loans that helped it avoid a year-end bankruptcy, but it faces a Feb. 17 deadline to show progress in its restructuring in order to qualify for $3 billion more.
Press' plea, according to the reports, was simple: Dealer purchases mean cash flow, and increased cash flow can show regulators that Chrysler has a chance to survive.
Of course, any dealer purchases are a short-term stimulus at best as long as consumers stay away from lots. Automakers are facing their most dire sales slump in more than two decades, and dealers are unlikely to continue buying vehicles if they can't get rid of the ones they have already purchased.
So perhaps an uptick in dealer orders can provide Chrysler with more time. But the automaker still has a lot of heavy lifting to do to survive long-term. -
Lou Whiteman
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