US auto major Chrysler today said it has received four billion dollars as emergency loan from the government, a move to avert a collapse of the ailing automaker.
“Chrysler received an initial four billion dollar loan to help bridge the current financial crisis,” the company said in a statement.
The amount is a part of the 13.4 billion dollar lifeline approved by the US government for General Motors and Chrysler last month.
“This initial loan will allow the company to continue an orderly restructuring while pursuing our vision to build the fuel-efficient, high-quality cars and trucks,” Chrysler Chairman and Chief Executive Bob Nardelli said in the statement.
The loans to the auto makers would be provided under certain conditions, including a limitation on executive pay.
Moreover, US President George Bush had said that the companies have to come up with viable plans for restructuring by March 31, 2009.
The auto makers would be given “three months to get in place plans to get restructure which we believe they are capable of doing…,” Bush had said.
The US President had pointed out that the entities have to pay back the loans if they fail to come up with restructuring plans.
Earlier, the US Treasury had thrown a six billion dollar lifeline for GMAC, the finance arm of beleaguered carmaker General Motors.
GMAC is the major lender for General Motors’s 6,500 dealers across the country.