Chrysler withdraws application for U.S. Department of Energy loan

Chrysler Group LLC announced yesterday that it has chosen to withdraw its application for a $7 billion loan from the U.S. Department of Energy that would push automakers to build more fuel-efficient vehicles.

A one-sentence notice was submitted by Chief Financial Officer Richard Palmer announcing Chrysler’s decision to withdraw the application.

“The Company remains confident in its strategy to bring competitive, fuel-efficient vehicles and technologies to market on schedule. This decision will not impact Chrysler’s ability to achieve its previously announced business plan targets,” the company said in a statement.

Chrysler had originally requested funding under the Advanced Technology Vehicles Manufacturing loan program since shortly after it was first approved by Congress in 2007.

The program was to offer $25 billion to automakers for to build more fuel-efficient vehicles.

– By: Omar Rana

Source: AutoNews