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The Chrysler Group has repaid it outstanding debt worth $7.6 billion in loans to the U.S and Canadian governments. This ends nearly two years of public ownership of the third largest U.S automaker.
Chrysler made a payment of $5.9 billion to the U.S Treasury and $1.7 billion to Export Development Canada- finally ending loans that bailed Chrysler out of near bankruptcy in June 2009. It is impressive that the automaker managed to repay all debts six years ahead of schedule.
“Less than two years ago, we made a commitment to repay the U.S. and Canadian taxpayers in full and today we made good on that promise,” CEO Sergio Marchionne said in a statement. “The loans gave us a rare second chance to demonstrate what the people of this company can deliver and we owe a debt of gratitude to those whose intervention allowed Chrysler to re-establish itself as a strong and viable carmaker.”
The repayment became possible for Chrysler through its 16 new or refreshed models this year. The company reported a first quarter net profit for the first time since exiting bankruptcy under the control of Italy’s Fiat S.p.A
The automaker initially borrowed $5.1 billion from the U.S and $1.6 billion from Canada in June 2009 however the company racked up $1.8 billion in interest.
[Source: Automotive News]