Business: Chrysler Goes Back to the Well

Bankruptcy looms in January without fresh Government aid

Chrysler for the second time this year is bumper to bumper with bankruptcy. Last June the company teetered for two weeks before its 400 lenders agreed to ease financing terms so that it could obtain $1.5 billion in federally guaranteed loans. Now Chrysler is asking for $400 million in new Government-backed loans. Without them, the company may not be able to survive the month of January.

The immediate cause of Chrysler's latest crisis was the reluctance of its dealers, whose lots are already packed with unsold cars, to order any more. This has forced the...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!