Chrysler Pays Off Government Loans
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