Chrysler corporate headquarters in Auburn Hills, MI (Ch... Chrysler corporate headquarters in Auburn Hills, MI (Chrysler)
Chrysler Group LLC is expected to announce today that it will repay about $7.5 billion in U.S. and Canadian government loans on May 24 -- about a month earlier than it recently said, and years ahead of the original schedule.

The loans are part of Chrysler's 2009 bankruptcy restructuring when a sudden drop in auto sales, resulting from the collapse of the credit markets, pushed the Auburn Hills, Mich., automaker to the brink of collapse. The company, bailed out by government loans and the United Auto Workers union, is now operated by Italian automaker Fiat SpA.

Chrysler, according to executives familiar with the plan, will use $3.5 billion in bonds, a $2.5 billion loan and about $1.3 billion in cash from Fiat to repay the government loans to the U.S. and Canada.

Chrysler will detail the terms of plan, which will result in the auto company paying back the government loans years ahead of schedule, on Thursday when the bond offering is priced.
In late April, the company announced it would repay the government loans by the end of June.

Repaying the government loans will be a significant step in Chrysler's comeback. The move will lower the company's costs by exchanging the government debt for private-sector debt that carries lower interest rates.

And it has political benefits, too: As the 2012 election season cracks up, many politicians, mostly Republican, are rehashing the controversial move to bail out the automakers.

Under Fiat's leadership, Chrysler has overhauled its vehicle lineup and cut costs. So far the automaker has updated 16 models, and collaboration between the two companies will move the company away from its traditionally truck and SUV heavy lineup.

Fiat has also used the Chrysler alliance to re-launch the Fiat brand in the U.S. this year after a 27-year hiatus.

Separately, Chrysler this week obtained preliminary approvals from a federal patent examiner in its bid to trademark "Imported from Detroit," the ad slogan of the marketing campaign it kicked off in last February's Super Bowl.


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    • 1 Second Ago
  • 4 Comments
      bolten2
      • 3 Years Ago
      Chrysler couldn't survive on its own, as part of Daimler, or as part of Cerberus Capital. I dont see much potential now that they are owned by Fiat.
      • 3 Years Ago
      David, I heard you on NPR Talk of the Nation speaking in favor of auto industry bailout, and I must say I was rather disappointed. As a small business owner, I do not want to see my government use its full faith and credit to reward the incompetence of the management of Chrysler, or any other company for that matter. The auto industry should have been allowed to go through the bankruptcy process; I am not convinced by the fear-mongering that the political class used to rush us into wars in Iraq and Libya, push through the Patriot Act and the travesty that was TARP. Shame on you and the rest of the establishment for encouraging this fleecing of the American people. Is your job perfect? Economical job placement assistance. www.jobwaltz.com
      • 3 Years Ago
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      daveswrath0704
      • 3 Years Ago
      yes how could Chrysler survive when Daimler rip off 10 billion that chrysler had in the bank because daimler didnt have to money to up grade there cars so they sweet talk to join toghter and steal the money HUM so they got the money and left then step in CERBERUS CAPITAL all they did is run the company down took the rest off the money then know NOT A THING about cars they were there for the greed off money ONLY !! FACTS and before daimler got the hand on chrysler money chrysler was in talk to buy out GM hum sound like they were doing good to me but the upper seen money and ran !