Chrysler repays US$7.6b in gov’t loans
Michigan, United States – Chrysler has eliminated most of its bailout IOU by paying off US$7.6 billion in loans to the US and Canadian governments.
The company repaid the money on Tuesday and plans to celebrate with government officials at a factory near Detroit.
Chrysler took US$10.5 billion from the US government to survive two years ago. It repaid some of the money last year and on Tuesday paid off a US$5.9 billion balance. It also paid US$1.7 billion to the governments of Canada and Ontario province. About US$2 billion of the government aid remains unpaid.
The company is able to make the repayment after selling bonds and taking out lower-interest bank loans last week.
The US government still owns 8.6 per cent of Chrysler, which it got in exchange for the bailout.