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Michigan Chrysler Dealers See Chrysler Repay $7.6 Billion; Fiat Ownership Increase to 46 Percent
Chrysler Group LLC had planned to pay back loans to the U.S. and Canadian governments by June. Michigan Chrysler dealers learned Tuesday $7.6 billion was repaid already.
[Rewind: Michigan Chrysler Dealers Feel Government Debt Slipping Away; Chrysler Pays Off Fed Loans with New Investments]
Michigan Chrysler dealers learned $5.9 billion was repaid to the U.S. government while Export Development Canada, which is the holder of the Canada and Ontario debt, was given $1.7 billion. As a partner with Chrysler Group, Fiat added its own finances as well into the company, which raised its original stake from 30 percent up to 46 percent.
Although this may have been a difficult task for CEO Sergio Marchionne and the company, the repayment was done within two years of the original bankruptcy.
General Motors, who also went through the same type of bankruptcy the same year as Chrysler, was able to pay off the loans a year earlier. In April 2010, General Motors repaid the $8.1 billion in government loans. This was five years ahead of schedule and only nine months after the bankruptcy.
Since then, GM has been growing its business, creating new efficient models, investing money into its plants and technology while also offering an IPO that turned out to be one of the largest in history.
With General Motors already back on track and Chrysler Group taking its first big step this week, both automakers of the Detroit Three have come back from the tragedy that hit their companies.
Michigan Chrysler dealers may be happy to see the loans repaid as the company is able to continue to gain back its original standing.
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[Source(s): Bloomberg, ABCNews]