The Detroit News reports Chrysler is walking away from the company's pursuit of low-interest Department of Energy loans. The automaker originally applied for an $8.55 billion loan when it was still under Cerberus Capital Management, though the figure had since shrunk to $3.5 billion. The DOE, meanwhile, said it was considering a much smaller $2 billion loan with additional restrictions than were previously negotiated. The loan period would also be significantly shorter. Chrysler had sought the funds as a way to reduce the company's interest payments, which would have dropped by nearly 5 percentage points had the deal gone through.

Instead, Chrysler will use its own funds for capital improvements. The report says the company has nearly $11 billion in liquidity, though that figure includes $1.3 billion in an undrawn private loan.

Chrysler isn't the only automaker to walk away from DOE loans. General Motors pulled its application for a $14.4 billion loan last January. The funds would have gone toward retooling. The DOE and the Obama Administration have been hesitant to hand out more government money after the solar panel company Solyndra LLC received around $528 million loans before going bankrupt.


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      • 2 Years Ago
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      • 2 Years Ago
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        Randy
        • 2 Years Ago
        Or Bush ads thanking him for admittedly leaving the bailout for the new President. Ehh hem. Funny how Bush had no part of the bailout of GM and Chrysler until it was realized that it worked.
          ryanandrewmartin
          • 2 Years Ago
          @Randy
          Thats also a pretty retarded comparison.
          DrEvil
          • 2 Years Ago
          @Randy
          Because he didn't. Him giving them cash to hold them over, was just so that the collapse of the US auto industry did not become the center piece of his legacy. No need to worry though, he still have the Iraq WMD FAILURE hung around neck forever. Oh, There is also the stupid tax cuts for the rich that drained the treasury, and him standing around with his thumb up his A$$ in the aftermath of hurricane Katrina. ....A stock market down to 6.5k, not being able to find Bin Laden for 7 years. You name it, bush Bungled it.
          DrEvil
          • 2 Years Ago
          @Randy
          Blame, blame, excuse, deflect, take no responsibility for anything and blame people who run the show 4 years ago. --------------------------------------------------------------------------------------------------------------- Yes, They must be held to account for their actions. Did you think that you get to hit a RESET button and all of the WRONG, STUPID, MINDLESS crap that little George did would just vanish? All those soldiers that were killed in Iraq are STILL dead, the lucky (?) ones are STILL missing limbs, we are STILL paying for the beans, bullets and bombs while l'il George retires to his ranch and pretends to be a cowboy, like he pretended to be PRESIDENT.
          ryanandrewmartin
          • 2 Years Ago
          @Randy
          Like all Republicans, Sea Urchin?
          Toneron
          • 2 Years Ago
          @Randy
          Maybe in your small mind. Yeah - funny.
      RobbieAG
      • 2 Years Ago
      They are far better off not making this deal with the devil. There would be way too many strings attached.
      dukeisduke
      • 2 Years Ago
      Since they're almost 60% owned by Fiat, why would we give them more money? Sergio got a sweet deal when he bought Chrysler, now he just has to make sure he doesn't screw it up.
        • 2 Years Ago
        @dukeisduke
        [blocked]
      Toneron
      • 2 Years Ago
      This is AWESOME news. This plus the Dart are great signs! Now that the quality playing field is more level people make their buying decisions more on design/style and company reputation. Reputation of Government Motors is a hindrance - except to sheeple and socialist sympathizers. Just look at their stock price. Doing the Greek dance. LOL. And big profits and fat profit sharing checks - when the owe the taxpayers billions! Yup this is GM bashing and indirectly Obama bashing. They deserve it!
        N Bluth
        • 2 Years Ago
        @Toneron
        Look at the next story; private markets sure do seem to be loving 'Government Motors'. It's really sad how people have to make EVERYTHING political these days. Why can't we be proud that an American company is doing well?
      RGT881
      • 2 Years Ago
      It's the restrictions and the fact that these loans are on short end...so when interest rates go up, it'll be harder to refinance this debt. As for Obama and Solyndra case...yep...throw in MF Global and now Venture Point...Washington Post ran a story on it yesterday. Guy is a prostitute.
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