Chrysler (Fiat:FIA) slipped out some massaged messages on its liquidity. In the headline bullets Chrysler reported flat-out they have $10 Billion of liquidity. Its only later deep in the earnings release that investors realize that liquidity from the market place is only $7.4 Billion. The remaining $2.6 Billion is a reliance on government support from the US Treasury, Canada and Ontario. Not a peep about when they will stop relying on the support and actually cut the apron strings. Not a peep about the terms of market place liquidity. How much of it is truly co-dependent? You know how brave lenders can be.
Disclosure: No position in any stocks mentioned in this post.
- Fiat Mulls Ferrari IPO to Boost Chrysler Stake: Report (nytimes.com)
- Chrysler CEO Marchionne: We’ll Take a Piecemeal Approach to IPO in 2011 (dailyfinance.com)