EW YORK (UPI)

2 S-billion aid package had
“put the nation’s “No. 3

utomaker “back in
“business” -and. predicted
‘Chrysler would show.a profit
. in the fourth quarter of this

‘ference one day after a
. special government panel
. approved the first $500-
_ million loan to Chrysler and
"authorized up to $1 billion in
" “ additional guarantees.

_.., He said Chrysler. would
ase between $175 million
“and $200 million of the first
-- loan to pay its suppliers, who
7 extended credit to the

NEW YORK (UPI) -
Chrysler Corp. is “back in
business” with a federal aid
package of $1.5 billion and
board chairman Lee Iacocca
says the No. 3 automaker's
economic future now
depends on the fuel efficient
Cars it will produce this fall.

“Our new front-wheel,
four-cylinder K-car should
turn Chrysler in the black in
the last quarter of this year,”
Iacocca said Wednesday,
one day alter a special
government panel approved
the first $500 million loan to
the company and authorized
up to $1 billion in additional
guarantees.

But he said because of the
volatile U.S. economy, he
could not predict “how much
in the black” Chrysler would
be by the final 1980 quarter.

Dismissing reports that the
company still faces a great
risk of failing despite the
largest government bail-out
of a private corporation in
U.S. history, he said, “The
financial episode is ovet and

fithin-a- whisker’ of bei being bankrupt

“The financial episode is
over and Chrysler is back in
the business of selling cars
. “Our -
new front-wheel, four-
cylinder K-car should tum
Chrysler in the black in the
last quarter of this year.”

Iacocca said he could not
predict “how much in the
would be in

the final 1980 quarter
because of the volatile U.S.
economy. °
He pinned the economic
future of Chrysler on the
success of the 1981 K-car,
the small, fuel efficient cars
it will produce this fall.
Asked how close Chrysler

came to bankruptcy before.
government -loan .

| Hopes for recove
set on new «’ car

the

Chryster is back
business of selling cars and
tracks.”

Chrysler will use between
$175 million and $200
million of. the first loan to
pay its suppliers, who cx-
tended credit to the com-
pany to help avert its
default, he said.

Asked how close Chrysler

came to bankruptcy before | .
loan -

the
package

government
was approved,

said: “Within a

whisker on certain days and
certain weckends.”
He dismissed that

Teports

“Chrysler still faced a great
risk of failing despite the
largest government ‘bail-out
of a private corporation in
U.S. history. -

“The aid package is a well-
thought out plan that passed
Congress by a two-to-one

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= «company to help avert its package was approved, chairman said. -
~~ Tacocca

When the original aid
peckage was drawn up. be

said, foreign car imports
accounted for between 20
and 22 per cent of U.S. car
sales.

“Now that fortign imports
are up to 28 per cent and
likely to reach 30 per cent,
this makes the plan more
difficult,” he said.

“We had hoped to contain
our losses at about $500
million this year, but they're
already drifting up,” he said.
Analysts project Chrysler
will lose about $1 billion this

- rescuc plan forthe highers “We have an adequate”
than-expected car imports, cushion since we

originally
Iacocca said Chrysler stili asked for only $900,000:
has “a ‘a safety valve” with $1.5 untess the world comes to an
billion in debt guarantees. ~~~ end,” he said.

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