Paying off debt is a dream shared by most Americans, however, most of them aren't staring down $7.5 billion that's owed to the United States and Canadian governments. Chrysler accountants currently see that on the balance sheet, and we imagine that figure looks rather daunting. Lucky for them, Chrysler is set to pay it back. All of it.
Chrysler is preparing to announce details of a $3.5 billion bond offering. Those funds, along with $1.3 billion in cash from Fiat and a $2.5 billion term loan, will be used to pay back the two government loans.
Fiat has previously expressed a desire to own a larger stake in Chrysler, and paying down this debt is the bridge it needs to cross to make that happen. Right now, Fiat owns 46 percent of the American automaker, but rumor has it that the Italians want 51 percent by year's end, and possibly as much as 70 percent at some point in the near future. For now, however, Fiat is showing that it's dedicated to returning Chrysler to a position of success.