Chrysler has taken the final step towards freedom from Uncle Sam by paying off the rest of its government loans. USA Today reports that Chrysler and Fiat paid the Treasury Department $500 million for 98,461 shares and $60 million for shares from a pact with the United Auto Workers' VEBA retirement trust.

The payment means that Chrysler shed its government obligations a full six years ahead of schedule. The automaker made the move in part to show U.S. car buyers that it is independent of government control, but the payment also means that the automaker no longer has to pay interest rates on the loan.

Assistant Secretary for Financial Stability Tim Massad called the move "a major accomplishment and further evidence of the success of the Administration's actions to assist the U.S. auto industry." He added, "We didn't make the auto interventions to make money, we made them to save jobs – and on that front, we dramatically succeeded."

True enough, but Uncle Sam probably won't receive the $1.3 billion owed by Old Chrysler, which was separated from the current Chrysler during bankruptcy. The department said in a statement that it has the right to recover assets from Old Chrysler, but doesn't expect "a material recovery of those assets."


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 75 Comments
      • 3 Years Ago
      [blocked]
        Skicat
        • 3 Years Ago
        Another troll who doesn't know his a#% from a whole in the ground about the auto industry. I guess "no one" means the thousands of people at Chrysler, their suppliers and the ancillary businesses who would all be collecting unemployment, losing their homes, dragging down the economy, etc. All because of your pinheaded, I-me-my view of the universe. This from a selfish d&#k who has never even owned the product. Signed, "Not an American fanboy"
          • 3 Years Ago
          @Skicat
          [blocked]
        kmrk
        • 3 Years Ago
        Just keep Dodge and Jeep. The rest belongs in the toilet
          Craywulf
          • 3 Years Ago
          @kmrk
          Butterfly, They are not gonna kill Dodge, stop spreading lies.
          • 3 Years Ago
          @kmrk
          [blocked]
        MAX
        • 3 Years Ago
        PAY ATTENTION MUCH BRIAN? YOU MUST GET YOUR REALITY FROM FAUX NEWS AND THEIR CREDIT DEFAULT SWAPPING PHONE HACKERS. CHRYSLER OUTSOLD ALL THE GOVERNMENT SUPPORTED ASIAN CAR COMPANIES LAST MONTH. GET OVER IT.
        K Gav
        • 3 Years Ago
        Brian has never got laid in his life (and probably never will).
        thisguy54321
        • 3 Years Ago
        Kia is a despicable company with unreliable, uninnovative, and crappy products. No one apart from the Korean fanboys would mind if Kia was put out of its misery.
      Eduardo Maal
      • 3 Years Ago
      This is such obvious propaganda, its not even funny. Wake up! Chrysler was allowed to not pay many of its obligations, including money they owed to accident victims in cases where they were found responsible!! And look at this: "True enough, but Uncle Sam probably won't receive the $1.3 billion owed by Old Chrysler, which was separated from the current Chrysler during bankruptcy." So it cost 1.3 billion for Chrysler to pay a couple of millions? Great maths... Stop being sheeple, this is all a scam.
        LostBoyz
        • 3 Years Ago
        @Eduardo Maal
        So Chrysler is at fault for how the government restructured their company? Chrysler Group LLC has paid in full all it was asked to. You cannot fault them for that.
          Thunderbuck
          • 3 Years Ago
          @LostBoyz
          Fstock09, you can go round and round on that one all year. You wanna blame faulty regulation? Then go back to the 80s when the Reagan Administration began either loosening regs or cutting so much funding for enforcement that what remained was effectively gutted. Guess who asked for THAT? And, no, it wasn't ALL Reagan. To be fair, even Clinton did his share of financial deregulation, but again, these changes were all at the request of industry.
          Fstock09
          • 3 Years Ago
          @LostBoyz
          @LostBoyz That's the same logic that lead to this financial crisis with unethical lending practices. Technically they weren't breaking the law and were doing what the regulators had asked them to at the time. You cannot fault them for that....just saying.
        misterpepper
        • 3 Years Ago
        @Eduardo Maal
        Total loss to US taxpeayer is more like $6.4 billion: http://washingtonexaminer.com/blogs/beltway-confidential/2011/06/taxpayers-lost-644-billion-chrysler-bailout
        Eduardo Maal
        • 3 Years Ago
        @Eduardo Maal
        I'm not blaming Chrysler, I'm blaming the Government. The Government propaganda is that it saved the economy, when in fact it just dug the hole deeper.
      black republican
      • 3 Years Ago
      NO ONE is going to stop complaining about the "bailouts". #1 Americans are only outraged when they are TOLD TO BE BY FOX NEWS. #2 Very few Americans can actually tell you the difference between a "bailout" and a "bridge loan". #3 Very few Americans know what banks got money and which ones didn't - or - Why they were "bailed out" #4 Right now everyone's pissed about Casey Anthony - so no one is gonna notice news about chrysler
        rlog100
        • 3 Years Ago
        @black republican
        Fox News is a Wallstreet apologist station. When they want people to think back on the 2008/2009 bailouts, they don't want them to think about the financial sector bailouts. When they are forced to talk about them, they don't try to portray them as a good thing. But somewhere between 'Necessary Evil' and 'Split Milk'. But the auto bailout that were 'just plain evil.'
        • 3 Years Ago
        @black republican
        [blocked]
          Renaurd
          • 3 Years Ago
          If he's smart he is,.........FOX is not news it propaganda.....Right wing propaganda.
        Travis George
        • 3 Years Ago
        @black republican
        Got to love it!
      dimeloBORI
      • 3 Years Ago
      Thankfully we tax payers get our money back... or don't we??? Anyways, now Chrysker can finally go out of business on their own with their debts paid. Why? Have you seen their cars lately? My TV turns itself off when their commercials are broadcasted.
        • 3 Years Ago
        @dimeloBORI
        [blocked]
          Thunderbuck
          • 3 Years Ago
          I've made the point before, but nobody seems to want to consider it: had Chrysler and GM been allowed to fail, their assets--including production facilities, zillions of patents, and cherished brands--would have gone on the auction block. And who would have had enough money to buy? Three guesses...
        Saco Sacão
        • 3 Years Ago
        @dimeloBORI
        That's Chinese TVs for ya…
      ExoPlanet
      • 3 Years Ago
      1.3 Billion is the best stimulus money spent to keep 500,000 jobs in my opinion.
        Eduardo Maal
        • 3 Years Ago
        @ExoPlanet
        No stimulus is well spent. If there was an investment that was worthwhile, the private sector would do it, there would be no need for the government.
          Thunderbuck
          • 3 Years Ago
          @Eduardo Maal
          Eduardo, I generally agree with the sentiment, but you're missing the big picture here. Had Chrysler gone into recievership, the assets would have gone up for sale to the highest bidder, right? So, who would have had the deepest pockets, and the strongest motivation to scoop up those assets? If Chrysler and GM had been allowed to fail, the Chinese would have had an irresistable opportunity to buy up 30% of the US market. Overnight. Would that have been better?
        Yakapo
        • 3 Years Ago
        @ExoPlanet
        Total bailout of 20 trillion plus is well over $100,000 per worker in the US. I'd rather have the $100,000 in my hand.
        • 3 Years Ago
        @ExoPlanet
        [blocked]
          Craywulf
          • 3 Years Ago
          If no Chrysler or GM existed...Mopar, and every other supplier would be defunct. That crap load of jobs. The auto industry is like a really long domino chain, if the biggest piece falls...it is a disaster for everyone. So the loan wasn't just about saving one company, but preventing a domino effect. Many complainers are not realizing is Chrysler paid the loan back SIX whole years than expected, that's a positive thing. Imagine loaning money to a friend and not expecting to get it for long time, then suddenly he comes back the next day and pays you off...and gives you little bit of interest on it. I think many would be ecstatic about that. The loan was worth it because it saved jobs....AND we got our money back sooner than anyone expected.
      • 3 Years Ago
      [blocked]
        Saco Sacão
        • 3 Years Ago
        I agree. Except with the "we're all Americans" (see, no apostrophe!) part.
      Blackstar
      • 3 Years Ago
      Chrysler must be doing well. I mean, if their workers can afford all that weed and beer.
      cdigs
      • 3 Years Ago
      A lot of conservatives have to eat crow over this one because -- ultimately -- it shows that government intervention into the private sector, when appropriate and necessary, can help not only save, but create jobs as well. Credit is due to Bush for signing TARP, but credit is due to Obama and his team for deciding to save Chrysler and the hundreds of thousands of AMERICAN JOBS that are involved in the manufacturing of parts, supplies, and vehicles.
        • 3 Years Ago
        @cdigs
        [blocked]
          edgardocamposmota
          • 3 Years Ago
          Who would have saved GM and Chrysler? The Chinese? Yeah great idea dumbass.
        • 3 Years Ago
        @cdigs
        [blocked]
      Humberto Paniagua
      • 3 Years Ago
      Wow ignorant Chrysler haters when will you let up? First of all Fiat is not getting rid of sh!t or else they would not be spending so much on the company, second have you guys ever sat in a 2012 300c? It kicks the ass of any import in quality and innovation. Wake your bland loving crappy import loving asses up, DETROIT is back and will dominate once again!
        founerra
        • 3 Years Ago
        @Humberto Paniagua
        I agree with you, except for one crucial fact, Hyundai/Kia is already almost top of the stack, just behind Lexus and Porsche.
        lne937s
        • 3 Years Ago
        @Humberto Paniagua
        Fiat will eliminate redundancies. Machionne has already stated that they plan on "consollodating management", which involves eliminating redundant positions. Parts for similar-sized cars will be made compatible, etc. And that 300c is a car imported from Canada, now made by an Italian-owned company. It is an import in every way except name.
        viperbono
        • 3 Years Ago
        @Humberto Paniagua
        Right on!
      • 3 Years Ago
      [blocked]
      Swagger
      • 3 Years Ago
      A truly classy move would be for Mr. Marchionne and New Chrysler to write a check and cover the losses of the Old Chrysler.
      lne937s
      • 3 Years Ago
      Perhaps the most significant aspect about this not mentioned in the article is that, with the final share purchase from the government, Fiat goes from being largest shareholder in Chrysler to majority owner. Chrysler officially became a division of an Italian corporation. Fiat no longer needs to get approval from the US government for its restructuring plans. I would expect major changes comming shortly.
    • Load More Comments