More than six years ahead of schedule, Chrysler Group LLC today repaid its outstanding $7.6 billion U.S. and Canadian government loans following the completion of a new refinancing deal it struck last week (click here for more on that). The $7.6 billion payment includes original U.S. and Canadian government loans totaling $6.7 billion, in addition to $1.8 billion of interest and other consideration.
Chrysler said that the loans by the U.S. and Canadian governments and strategic alliance with Fiat helped bring 16 all-new or significantly refreshed vehicles currently in dealerships; more than $3 billion in facility upgrades; and increased employment with the hiring of 6,000 Chrysler Group employees.
“Less than two years ago, we made a commitment to repay the U.S. and Canadian taxpayers in full and today we made good on that promise,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “The loans gave us a rare second chance to demonstrate what the people of this Company can deliver and we owe a debt of gratitude to those whose intervention allowed Chrysler Group to re-establish itself as a strong and viable carmaker. Paying back the loans, along with the financial community’s investment in our refinancing packages, marks another step in the Company returning as a competitive force in the global automotive industry.”
Chrysler said it continues to have more than $10 billion in liquidity after the refinancing and loan payoffs, which includes the undrawn revolving credit facility. The Auburn Hills automaker said the company’s return to profitability and double-digit worldwide sales increases show new product lineup gaining momentum in marketplace.
Fiat is now expected to increase it stake in Chrysler to more than 46%.
Note from Editor: Congratulations to Chrysler, Fiat and Sergio Marchionne.
– By: Omar Rana