Business

May 23, 2011 5:18 PM by Jeannette Hynes

Chrysler plans to repay government loans Tuesday

MACOMB TOWNSHIP, Mich. (AP) - Chrysler CEO Sergio Marchionne
says his company will save $300 million in interest per year when
it repays government loans on Tuesday.

The company will repay roughly $7.5 billion in loans to the U.S.
and Canadian governments. Chrysler is taking out new bank loans and
selling bonds to make the payment.

Chrysler got about $10.5 billion from the U.S. to survive
bankruptcy in 2009. It has repaid some of the money and plans to
give the U.S. $5.9 billion on Tuesday.

The company still owes the U.S. government $2 billion. The
government could get some of that back by selling its 8.6 percent
stake in Chrysler.

Chrysler has said it's eager to pay back its government loans
because they have high interest rates and they angered some
consumers.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

 

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