Chrysler repays government loans

From the Detroit News:

It’s official. Chrysler Group LLC today confirmed the wire transfers have gone through, and the automaker has repaid loans from the U.S. and Canadian governments.

The automaker has repaid $5.1 billion in loans, as well as $1.8 billion in interest and other fees, releasing Chrysler from all monetary commitments to the governments less than two years after the bailouts kept them in business. Chrysler went to the capital market for lower-interest financing to get out from under the government loans that carried interest rates as high as 20 percent. The refinancing — which is much like refinancing a home mortgage — will save more than $300 million annually.

Today, Chrysler repaid the U.S. Treasury more than $5.9 billion; Canadian governments received $1.7 billion to retire their loans to the automaker.

At a celebration attended by 1,100 workers this afternoon at Chrysler’s Sterling Heights plant, Chrysler CEO Sergio Marchionne wore a pin that said “Paid” on his customary black sweater.

Read the full article.


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