• Oct 27, 2010
Chrysler Pentastar V6 engine begins production – Click above for high-res image gallery

Chrysler, the recently bankrupt automaker that accepted billions in government aid last year, is reportedly next in line to receive new technology loans from the U.S. Department of Energy. Ford, Tesla, and Nissan have all applied and been approved for these technology loans that come out of a $25 billion program approved by Congress back in 2007. The federal funds are meant to be used for retooling factories, making the way for production of more fuel efficient vehicles.

Chrysler's loan request totals $10 billion, nearly twice as much as the $5.7 billion it still owes the U.S. Treasury for last year's bailout. Approval of the loan is reportedly fluid, which means that the DoE has not yet established a timeline for granting the funds, but Automotive News cites sources with financial and auto industry expertise who suggest that Chrysler's bid for aid will receive a sign-off before similar loan requests made by General Motors. That's because GM's in the middle of prepping for its initial public stock offering next month, and approving its loan requests would only make matters more complicated.



[Source: Automotive News - sub. req.]


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  • 13 Comments
      • 4 Years Ago
      Where is the U.S. government getting all this cash?
      • 4 Years Ago
      The man on the forklift is making $148/hour
      • 4 Years Ago
      If it wasn't for the jobs, I would say cut them lose. Former management has raided this company like a bank with a wideopen vault door. And, the money they grabbed was tax-payer bailout money. Now they are being run by Fiat management. A Company that lives off Italian government subsides...Fiat cannot operate on its own in its home country. What do you think their MO will be here?
        • 4 Years Ago
        Agreed. Any loans should come with the stipulation that all money be invested in U.S. based operations to hire U.S. based workers. And if they don't like it then they can go to a real bank or pound sand.
      • 4 Years Ago
      Well, if the money is for retooling factories, etc, to be like the engine plant in the gallery photos then I am fine with it. The Trenton engine plant is modern, worker and environmentally friendly. The 1.4 motor for the FIAT 500 will be built there as well as the Pentastar V6. More plants and technology like that is a win for the economy. And since it's a loan, it will be paid back. I know that's dependent on Chrysler surviving but after all the news of late I'm much more hopeful than a year ago.
      • 4 Years Ago
      Why does our government keep giving out money for companies that cannot keep themselves afloat due to unions and bad management. Imagine if we caused our company to spew money like this. I think we would be booted from that company quite quickly. Instead our tax money keeps funding companies that should go under and teach the unions a lesson for once. Not that I want people to lose their jobs, but c'mon.

      I also have some internal knowledge about Chrysler and lets just say their management has not gotten better since the bailouts. Their quality standards have declined dramatically and they continue to make bad decisions.

      I wish the government would stop the bailouts and driving the country into more debt.
      • 4 Years Ago
      Must be the new math, Chrysler owes at least 5.7 Billion, so they will borrow 10 billion from another part of the government and pay back the treasury?
      • 4 Years Ago
      Everyone note: 2007

      Now, let's see who ignores that and goes on a rant...

      Never sure how I feel about this sort of thing. I love cleaner, green, updated techs...but I also concede private companies have a responsibility of their own to fund improvements and not the taxpayer.

      I dunno...if they pay it back with interest I feel a lot better about it...though with some companies you can never be sure they'll be around long enough to make the payments.
      • 4 Years Ago
      We sould complain about the money spend on the Iraq war.
      Any loans made to what little industry we have left should be welcomed by the tax payer so those who are still working help pay the tax burden.

      We are competing in a global economy. You can bet that other governments are subsidizing their industries.

      We as a nation spend insaine amounts of money on defense, Not only on our own defense but that of others around the world.

      This 2007 policy will some how fall on Obamas` lap. But its not all that bad to invest in the making of GNP.
      God bless the new Chrysler, because I love cars, mainly American cars.
      • 4 Years Ago
      Wait. Where did the govt. get the money to loan them?
        • 4 Years Ago
        You can say all sorts of stuff about govt. subsidies in other countries. Maybe that's true, maybe it's more complicated than that. But it is not relavent to my arguement.

        If we decide as a people that we want to subsidize the automakers in total or in particular areas - I am not arguing for or against that. But, we run a trillion dollar deficit. The money isn't there. Run a responsible govt. first, that actually has the money and then tell me what we need to spend money on. They're just borrowing it from the Chinese and sticking me and my kids with the bill later. And I mean this for everything from the military to public education.

        And as an aside, if the people in some other country want to pay higher taxes so that I get cheaper products then, I am not really going to complain that much.
      • 4 Years Ago
      Just more funds to keep the union thugs happy. Technology might cost them jobs, it will never happen at Chrysler.
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