Wednesday, July 16, 1980
The Carter administration yesterday gave preliminary approval to an additional $250 million in federal loan guarantees to the ailing Chrysler Corp.</br></br>At the same time, the Chrysler Loan Guarantee Board issued a warning that the outlook for the auto companyÛªs recovery has become significantly more risky.</br></br>In Detroit, meanwhile, the American auto manufacturers yesterday reported that sales in early July showed evidence of a rebound from the very depressed sales levels in recent months.</br></br>In ChryslerÛªs case, however, the damage done so far this year has proved to be worse than anticipated. The company yesterday reported a loss of $1,017 billion for the first six months of the year, thought to be the heaviest financial loss ever suffered by an American corporation for a half-year.</br></br>The nationÛªs third-largest auto company has been particularly hurt by the slump in auto sales, along with the uncertainty over its survival.