Chrysler repays US, Canadian governments bailout loans

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Tuesday, May 24, 2011 at 03:11PM

Chrysler Group has repaid $7.6 billion in loans and interest to the US and Canadian governments. The repayment is more than six years ahead of schedule and reflects the company's double-digit sales worldwide and its return to profitability.

The company today paid $5.9 billion to the US Treasury and $1.7 billion to Export Development Canada to retire loans made in 2009 as part of the "bailout" of the auto industry.

Sergio Marchionne, CEO of Chrysler, expressed gratitude "to those whose intervention allowed Chrysler Group to re-establish itself as a strong and viable carmaker."

Repayment of the loans signals Chrysler's return "as a competitive force in the global automotive industry."

Chrysler also confirmed a new financing arrangement that includes a term loan of $3 billion, debt securities totaling $3.2 billion, and a revolving line of credit worth $1.3 billion. The company now has more than $10 billion in liquidity.

* SPECIAL AUTOMOTIVE |

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