Chrysler Pays Off Government Loans

Chryslerloan
Earlier this afternoon, Chrysler finished wiring nearly $6 billion to the U.S. government. The massive money transfer took hours to complete but comes at the tail end of nearly two years of federal involvement with the Auburn Hills, Mich., automaker.

In total, Chrysler has repaid $6.7 billion in loans and $1.8 million in fees and interest. It is the interest cost that forced the move to pay back the government ahead of schedule. The deal includes Chrysler using alternative credit sources that will have lower rates than what the U.S. Treasury Department was charging on the huge sum of money.

Chrysler’s financial situation is improving under new ownership by Italian automaker Fiat, and without the shadow of massive government intervention — it still holds a small share of the company — looming overhead, it will likely attract more shoppers.

Chrysler Repays Government Loans (Detroit News)
Photo courtesy of Chrysler via Twitter

By David Thomas | May 24, 2011 | Comments (6)

Comments 

Idaho Guy

So good to see. And hopefully Fiat's accompanying re-introduction to the US market will be a rousing success!

Troy S.

Good to see Chrysler pay their debt to American taxpayers.

Bob

Everybody keep in mind that the loan payoff by Chrysler does NOT mean that the taxpayers got all their money back. Quoting the Treasury's press release today:

"Treasury is unlikely to fully recover its remaining outstanding investment of $1.9 billion in Chrysler. "

Source:
http://www.treasury.gov/press-center/press-releases/Pages/tg1189.aspx

Rt

The financial collapse caused by deregulation and schemes created an unsustainable situation for the auto industry. We had to bail out the financial industry which produces NOTHING but was considered without question necessary to do.

The auto industry, which does produce products and has several communities fate tied to them was written off and the decision to loan them money was mocked etc. This is great news and was an excellent investment.

Jordan

Only and idiot thinks losing $1.9B is a good investment. Then again this country is full of lazy poorly educated idiots. That's why we have the top 10% and then there's everyone else. Thankfully I came from a good gene pool and work hard so I'm in the top 4%.
An educated man knows it would have been better to let the banks and car makers go up for liquidation as the assets had enough value to be purchased.

It's good to hear that there a lot of options when your going to get a loan.

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