Chrysler gets $4 billion federal loan

Chrysler LLC yesterday received the first $4 billion of its emergency loan from the U.S. government. Rival General Motors received its $4 billion two days ago on Wednesday. Officials have not said why GM and GMAC, which got $6 billion on Tuesday, got their payout ahead of Chrysler.

“This initial loan will allow the company to continue an orderly restructuring,” Chrysler Chief Executive Bob Nardelli said in a statement.

Nardelli told his employees in a letter that the first payout was delayed due to the complexity of the deal.

“The Treasury Department has been working to complete the multiple, complex financial arrangements quickly and sequentially. The magnitude of these discussions was significant,” Nardelli said.

Chrysler originally asked the U.S. government for $7 billion.

Source: Reuters