Chrysler Cashflow Crisis
Frank Williams reports that Chrysler is having serious cashflow problems and has taken a novel approach to dealing with it: “Chrysler will now be taking five percent off all [purchase orders] PO’s and will take 60 days to pay instead of 45.” This applies “to all existing orders, not just future orders.”
I would love to implement such a system with respect to my mortgage company and others to whom I owe money but, alas, suspect they would not be amused.
Then again, Chrysler may not get away with it for long, either. Stephen Green, who thinks we may be down to “the Big 2” before long. I stopped counting Chrysler among the “Big 3” when they got bought up by Daimler and never added them back once Daimler spit them back out, so I won’t miss them terribly. The concept of an “American” car is long outdated, anyway. My wife and I both drive “Japanese” vehicles that were designed and/or assembled in the United States.