Details of Chrysler’s Plan Submitted To Congress

DETROIT (Reuters) – Chrysler LLC on Tuesday submitted a plan requested by Congress detailing its business case for receiving government funding as part of a bailout for the struggling auto industry.

Following are the details of the business plan:

* Chrysler is requesting a $7 billion bridge loan from US government by end-December.

* Says Cerberus will work with government to provide collateral and secure taxpayer funding

* Expects to be in a position to begin repaying government loans in 2012.

* Says has applied for $8.5 billion in low cost loans from the Department of the Energy designed to help automakers develop fuel-efficient cars.


* Estimates Chrysler will have about $2.5 billion of cash by the end of the year.

* Says anticipates Q1 expenses of $11.6 billion, including $8 billion to parts suppliers

* Says without bridge loan could fall below minimum cash needed to operate in Q1 2009

* Sees synergies of $3.5-$9 billion from alliance or consolidation with other automakers.

* Says remains focused on partnerships, strategic alliances or mergers.

* Says expects to generate cash in 2010, assuming government support

* Says expects to post operating profit from 2009-2012

* Says could offer government warrants, preferred stock or other equity

* Says would be well positioned to begin repaying government loans beginning in 2012.


* Says Chief Executive Bob Nardelli will receive $1 a year salary. Nardelli receives no health care, insurance or similar benefits from the company.

* Chrysler did not pay salaried merit increases or performance bonuses in 2008, and has not planned salaried merit increases or performance bonuses for 2009.

* Top management will bear 100 percent of their healthcare premium costs.

* Says assumes US industry sales in 2009 of 11.1 million units

* Says prepackaged bankruptcy not an option for the company.


* Plans first electric-drive model by 2010, and expansion to additional models by 2013.

* Chrysler will have over 500,000 electric-drive vehicles produced by 2013.

* On target to meet commitment of 50 percent of its fleet being flex capable by 2012.

(Reporting by Soyoung Kim)