On Wednesday, July 9 Chrysler, continued to fend off rumors of a potential bankruptcy and issued a reassuring statement to dealers.

In a letter signed by co-president Jim Press and executive vice president of North American sales, Steven Landry, the two cited recent media coverage and analyst reports concerning Chrysler's financial condition.

The letter stoutly denied the accuracy of such reports saying, "Chrysler has communicated to the media that the suggestion of a possible bankruptcy situation is without merit."

Some of the speculation has stemmed from a $2 billion loan from Daimler AG and Cerberus Capital management LP, which was actually part of the original deal in which Cerberus purchased 80% of Daimler's holdings in Chrysler.

The loan "was not something that was a result of Chrysler having any need for incremental cash based on financial performance of the business," said Lenard Tessler, managing director of Cerberus Capital Management LP in a presentation to the national dealer council on June 27.

In their statement, Press and Landry also pointed to recently retooled production levels including the closing of a minivan plant and a reduced number of shifts at a truck plant, both in St. Louis as factors in improving the company's overall strength.

For the remainder of the year Chrysler plans to concentrate on models returning high mileage and the intent is "to hang in there and fight for every sale during this period."