• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Chrysler LLC Launches Company Supplier Support Program With Assistance from U.S. Treasury

Posted on: Wednesday, 8 April 2009, 09:56 CDT

AUBURN HILLS, Mich., April 8 /PRNewswire/ -- Chrysler LLC today announced the launch of the Company's Supplier Support Program, as a result of the recent Obama Administration's announcement of a $5 billion program to provide suppliers with the confidence they need to continue shipping parts; and the support they need to help access loans to pay their employees and continue their operations.

"Chrysler is extremely pleased to be able to assist in extending this support to help stabilize our supply base, preserve American jobs and ensure the continued production of quality vehicles through our Supplier Support Program," said Chrysler LLC Senior Vice President and Chief Procurement Officer Scott Garberding. "We applaud the initiative set forth by the Administration and appreciate that Chrysler and the U.S. Treasury came to complete agreement on the terms and conditions of the Company's program expeditiously. This would not have been possible without the endorsement of our first lien bank group -- J.P.Morgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and others -- who provided the necessary authorization allowing Chrysler to make the equity contribution to implement Chrysler's Supplier Support Program."

Chrysler's program is available to suppliers of production parts and materials that are incorporated in the U.S. The program will be administered by Citi Bank and the supplier on-boarding process is already underway. Under the program guidelines, suppliers have two options available: (1) insurance of Chrysler's accounts receivable or (2) accelerated payment of Chrysler's accounts receivable. The cost of the insurance option is 2 percent of each invoice and the cost of the accelerated payment option is 3 percent of each invoice. Any suppliers interested in the program should contact their buyer for more details.

As part of the Administration's Supplier Support Program, U.S. Treasury agreed to contribute a $1.5 billion line of credit, with the requirement that Chrysler make a 5% capital infusion. Chrysler's loan agreement requires authorization of the first lien bank group prior to the Company contributing capital into a new company.

Chrysler will continue to work with the President's Auto Task Force on implementation of its program.

SOURCE Chrysler LLC

Source: PR Newswire

More News in this Category