Chrysler withdraws government loan request, calls DOE terms too restrictive

If you have a hate on for automakers that take government money then it may be time to upwardly revise your feelings towards Chrysler. The pentastar brand had originally sought up to $7 billion from the Advanced Technology Vehicles Manufacturing ( ATVM) loan program, though since its original request in 2007, it had reduced that amount downward to a more reasonable $3.5 billion. Now, it has withdrawn its application completely.

Apparently, the terms sought by the DOE were too restrictive for Chrysler's needs – something PHEV-maker Fisker is all too familiar with. While we don't think the decision will impact the launch of the company's only announced battery powered vehicle, the Fiat 500 EV, big kahuna Sergio Marchionne is clearly unimpressed with the whole process. Says the Chrysler-Fiat CEO, comparing its position to its Detroit-based competitors,

One blocked DoE funding and the other one was using equity capital, which is probably even a better substitute than DoE funding at a lower rate. So I'm the only guy who is sitting over here that pays back everything with interest and I am sitting over there and I don't want to be favored, I just don't want to be mistreated.

U.S. Representative John Dingell (D-MI) issued a statement that he's disappointed in the situation, saying he, "regret[s] that DoE and Chrysler were not able to come to an agreement that clearly would have benefited American workers and manufacturers." Read the whole thing after the jump.
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Dingell: Chrysler DOE Loan Application Withdrawal Disappointing
Regrets that DOE and Chrysler could not agree on terms

Washington, D.C. – U.S. Representative John D. Dingell (D-MI15) issued the following statement today expressing his disappointment that Chrysler and the Department of Energy (DOE) could not reach an agreement on funding and duration of loan terms for Chrysler's Section 136 application:

"I am disappointed that Chrysler withdrew its Section 136 application. I regret that DOE and Chrysler were not able to come to an agreement that clearly would have benefited American workers and manufacturers.

"Chrysler had a great year in 2011 and posted a 44 percent increase in sales for January 2012 alone. The company is in much better financial health than it was in 2009 and to me appears to be a perfect candidate for a 136 loan from the DOE. Although Chrysler has withdrawn its loan application, DOE must start acting decisively so we can fulfill the President's goal of out-competing the rest of the world.

"As Clint Eastwood reminded us during the Superbowl, it is halftime in America and our second half is beginning. We have a great team, but we must see it has the resources to win."

Chrysler Information


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