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Chrysler Gets $4 Billion Emergency Loan

Chrysler has received an emergency loan of $4 billion from the U.S Treasury — a long-anticipated “lifejacket” the auto manufacturer’s chairman and CEO said would “help bridge the current financial crisis.”

“This initial loan will allow (Chrysler) to continue an orderly restructuring,” Chrysler head Bob Nardelli said in a statement.

Treasury spokeswoman Brookly McLaughlin confirmed the finalization of the Chrysler loan in “the full amount of $4 billion.”


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Chrysler Announces Production Shutdown For At Least One Month

Another day, more bad new for U.S. automakers. This time, it’s Chrysler, one of the manufacturers seeking a federal bailout.

In a letter to its employees, suppliers, the United Auto Workers union and posted on its web site, Chrysler said it will shut down all manufacturing operations for at least a month from Dec. 19. It also warned dealers that due to increasing withdrawls, it may be forced to stop financing vehicle inventories.

Chrysler told its dealers that it may have to temporarily stop financing their vehicle inventories if dealers keep pulling large amounts of their money out of an account that helps fund those loans.

Thomas F. Gilman, Chrysler Financial's vice chairman and vice chief executive, said in a letter to dealers dated Dec. 12 that recent withdrawals from the company's cash management account have been "unusual and unprecedented."



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