The collapse of auto industry sales has cost Chrysler LLC about $16 billion in lost revenues, CEO Bob Nardelli said in U.S. Senate testimony today.

In submitting a request for a $7 billion loan to a U.S. Senate committee, Nardelli said the financial crisis devastated Chrysler's sales and derailed its previously successful recovery plan. He specifically cited the drop in sales from nearly 17 million units in 2007 to an annual rate of about 10.5 million vehicles in November.

"At 10 percent market share, it translates to a loss of 650,000 vehicles, or roughly $16 billion in lost revenue opportunity. With such a huge hit to our sales and revenue base, Chrysler requires the loan to continue the restructuring and fund our product renaissance."

In exchange for the money, Nardelli pledged that Chrysler would continue "negotiating cost-saving concessions from all constituents" and renew its drive to design and build more fuel-efficient vehicles.

Nardelli said the automaker has identified about $4 billion in potential cost savings and improvements.

"We are committed to negotiate with all constituents to achieve our savings targets," Nardelli said in prepared testimony.

"Chrysler is committed to continue our restructuring, including negotiating cost-saving concessions from all constituents, investing in fuel efficient cars and trucks and beginning repayment of our government loan in 2012," he said.

Nardelli earlier revealed that Chrysler was burning through cash at a rate of $1 billion a month in the third quarter. Without a cash infusion, Chrysler might not survive the first quarter of 2009. Chrysler needs the money to meet its near-term obligations.

Nardelli said Chrysler is repositioning itself as a maker of fuel-efficient vehicles, including electric cars: "A key feature of Chrysler's future is our capability as an electric vehicle company. Through our GEM neighborhood electric vehicle division, Chrysler is the largest producer of electric-drive vehicles in the U.S. today."

He said Chrysler expects to have 500,000 electric-drive vehicles on the road by 2013 including the all-electric vehicles from GEM, or Global Electric Motorcars LLC, and the gasoline-electric hybrids from its ENVI unit.

Nardelli also proposed a government-led technology partnership called Automotive Energy Security Alliance.

The group would "coordinate public and private spending already devoted to advanced vehicle technologies, produce basic technology available to all manufacturers, work with national labs and major research universities and draw private investment to meet our national energy and environmental goals," Nardelli's statement said.

Nardelli also revealed that about 5,000 white-collar employees took buyout and early retirement offers that expired Nov. 26. The buyouts were part of a downsizing that began in April 2007.

Reuters contributed to this report