• May 18, 2010
Since General Motors and Chrysler entered bankruptcy last spring, GM has stolen the lion's share of the headlines. The General has made front page news with new products, a government loan payback and first quarter profits, while Team Pentastar has quietly gone about the business of returning to respectability. Chrysler took another step towards its goal this week as the company paid back another $1.9 billion in government loans to the federal government. In total, Chrysler has paid back $3.9 billion of the $14.3 billion in loans the company received.

The U.S. Treasury Department said in a written statement that the repayment "is significantly more than the Treasury expected to recover on this loan, and is greater than an independent valuation of the loan." In other words, Treasury wasn't exactly expecting a cash return on its investment. Chrysler plans to unload further good news when it officially reports its earnings. The automaker said in April that it expected to earn up to $200 million on revenue of $40-45 billion.

[Source: Market Watch | Image: Bill Pugliano/Getty]


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  • 35 Comments
      • 4 Years Ago
      Good.
      • 4 Years Ago
      It was unfortunate that Chrysler had to go through bankruptcy to solve it's issue. You can't have stuff that has capacity for 1 million units when you are only selling 200K, among other issues. While many people were affected (job losses). It's better to have half of a Chrysler the zero of a Chrysler.
      • 4 Years Ago
      Another shady loan-shifting maneuver I'm sure. These old dinosaurs will never learn. Time to put yourself out to pasture, Chrysler.
        • 4 Years Ago
        Good news, yes. Not as different as you say though. Both were loans from the government to troubled auto companies. Both were paid back.
        • 4 Years Ago
        If the government expected nothing in return, why would they call it a loan? They gave them money (large sum) and they loaned them money (small sum). They obviously expected nothing in return for the gifted money and hey guess what they won't get it. Any money that is being paid back is only done so because of the huge amount of gifted funds. The govenrment gets nothing from this -- they lose a tiny bit less.
        • 4 Years Ago
        Uhhh no. This isn't General Motors we're talking about here.

        This loan is for the OLD Chrysler LLC. The government expected $0 on this loan since they entered bankruptcy, however, they or "we" are getting 1.9 billion back on this loan. Thus making our loss on pre-bankruptcy Chrysler $2.1 billion,instead of the expected 4.

        Good news, Yes.
      • 4 Years Ago
      Great. Now get rid of Chrysler stock if we own some. Meaning the government of course.
      Sell it and get government out of the auto business.

      • 4 Years Ago
      They may pay back the full amount in time. I wish people wern`t so negative towards the little bit of industry we have left.
      Chrysler paid us back before, the time they got bashed for getting just a government backed loan people called a bail out.
      I much rather see my tax dollar supporting US industry instead giving it to foriegn countrys.
      I would be against any type of monitary support to US business by our government if it were us compeating against ourselves like the old days.
      We now have a global enconomy with competetion from abroad. Other Governments give to their industry. Our tax dollars goes to the defense of many of these nations.
      What do we get paid for military support?
      God bless Chrysler!
        • 4 Years Ago
        Agreed

        8 pat you on the back for that sir!
        • 4 Years Ago
        It's not a matter of people being so pessimistic. The Treasury Department itself doesn't believe it will be paid back. They feel they may get another $500M of this $4B loan, but they will lose the entire $1.9B from the other loan.
      • 4 Years Ago
      Those are some slim margins. $200M on $40-45B?!? That's a net margin of 0.5%. For comparison, in Q1 2010, Ford had a net margin of 7.5%.
      • 4 Years Ago
      Good job Chrysler!
      • 4 Years Ago
      Pay back $1.9 billion eh? Yeah right... after they shuffle money around to make it looked like they did.
      • 4 Years Ago
      I'm not a big fan of the D3 after my experiences but as an American, I welcome this good news!
      • 4 Years Ago
      Another step in the right direction, now if they would revive their EV program.
      • 4 Years Ago
      Makes no difference folks. Chrysler is NOT paying back the full 4 billion. Only 1.9 billion and the TAXPAYER, yes YOU AND ME are stuck for the other 2.1 billion. I wish I could call my banker and say hey I will give you half of my mortgage owed, but because you never expected to get the rest back, how about me not paying you the rest. That is basically what was done here.
        • 4 Years Ago
        You can, it's called bankruptcy.
        • 4 Years Ago
        Bingo. This is nothing but reindeer games on Chrysler's part. We all lose here.
        • 4 Years Ago
        Except when the rest of us go bankrupt we lose the house, the car and pretty much everything. Thanks to the government bailouts and creative corporate finance laws Chrysler and GM got to go Bankrupt and keep all the assets they wanted while spinning off almost all of their liabilities on a dead horse company. They even got to keep their names and logos. These announcements about loan repayments are just further confusing the issue.

        The taxpayers are out Billions for the bailouts of Chrysler and GM that we will never get back. There are actually people out there who think GM has given back all the money they got thanks to these sound bites and inaccurate or incomplete reports.

        I think Autoblog needs to make a nice graphic showing just what we paid in the bailouts and keeping track of what they repay as a percentage.
      • 4 Years Ago
      Well they still had plenty to fund pro-gunvernment and pro-corporate trolls. They must be in the black. Now let's hope it goes back to red and they can join the rest of the leeching parasites they serve.
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