Although Chrysler ’s U.S. sales continue to sag below the overall industry, the Michigan-based automaker is still adamantly denying any bankruptcy rumors. Chrysler’s sales were down over 30 percent in June, largely due to a lineup heavy in trucks and SUVs.
In a letter to dealers obtained by Automotive News, Chrysler reassured its dealers that liquidity was not a problem. “Speculation has surfaced recently in media coverage of analyst reports suggesting Chrysler might have liquidity issues down the road if the U.S. market does not pick up,” the letter, which was signed by Chrysler co-president Jim Press, said. “Chrysler has communicated to the media that the suggestion of a possible bankruptcy situation is without merit.”
Some industry analysts have predicted that the nation’s third largest automaker could file for bankruptcy as soon as September.
Adding to liquidity concerns is the fact that Chrysler just drew down a $2 billion line of credit from Cerberus and Daimler. However, Chrysler claims that line of credit stems from the original deal inked between the companies last year and has nothing to do with current market conditions.
