GM to start repaying U.S. government loan, source says

Automotive News | November 17, 2009 - 9:02 am EST

Paraphrasing of Marchionne over the last two weeks: "Chrysler had done next to nothing for the last 2 years. I have removed the old management almost completely. Here's the new team, and they will tell you what we're going to do for the next 5 years. Financially, we broke even in September and our cash-on-hand has increased, but that's nothing to write home about. We hope to break even for CY2010, then turn profits in CY2011 - at that point, we can repay the government loans. The pool is deeper than I thought, but we intend to swim."

Paraphrasing of Henderson: "We're back! We didn't lose nearly as much as the former corporation did. We have money to begin repaying the Treasury Department. Our plan is working."

Marchionne came in from the outside and found Chrysler in a similar state as when he took control of Fiat. He has not just experience, but success in turning an automaker around. Henderson was part of the upper management that already failed GM.

Mullaly straightened Ford. Marchionne has a workable plan to straighten Chrysler. Maybe GM should look for someone outside the company whose last name begins with M.


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