July 4, 2008  From http://english.autoinfo.gov.cn

(July 4)--Chrysler LLC is the weakest of the Detroit 3 and could face a cash crisis during the second half of 2009, a Wall Street auto analyst warned today in a conference call. 
     
"The risk of a liquidity event at Chrysler during the second half of 2009 is fairly real," said Himanshu Patel, an auto analyst for JP Morgan. Patel estimated that Chrysler will burn $3.7 billion in cash in 2008. Patel stressed his figures were an estimate because Chrysler is privately held and does not report its financial figures. 
     
Chrysler finished 2007 with about $9 billion in cash. CEO Bob Nardelli told workers the company lost about $1.6 billion last year. 
     
Patel estimates Chrysler could rack up an operating loss of $4.5 billion in 2008. Chrysler executives repeatedly have stated that they are ahead of their financial targets. 
     
Patel said Chrysler faces several issues in its attempt to weather the current crisis. 
     
"First and foremost, they have limited external fundraising options," he said. 
     
Chrysler also relies more heavily on trucks and SUVs than competitors, and "they don’t have the benefit GM and Ford have of significant positive international cash flow," Patel said. 
     
Patel said Chrysler might have to sell assets if a cash crunch occurs. Sellable assets might include Chrysler’s U.S. distribution system, the Jeep brand, Dodge trucks and the industry-leading minivan business. Chrysler executives have said they do not want to break up the company. 
     
Patel said Chrysler will have diffi culty raising money on Wall Street by other means: "The debt market is difficult for Chrysler to tap. They don’t have a whole lot of high-value unencumbered operations."

(Editor: Haijing Qu)