Report: Chrysler abandons plan seeking more federal loans - Hyundai Genesis Forum
LinkBack Thread Tools
post #1 of 1 Old 02-17-2012, 05:40 AM Thread Starter
Senior Member
Join Date: May 2008
Posts: 53,838
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
(Thread Starter)
Report: Chrysler abandons plan seeking more federal loans

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

The Detroit News reports Chrysler is walking away from the company's pursuit of low-interest Department of Energy loans. The automaker originally applied for an $8.55 billion loan when it was still under Cerberus Capital Management, though the figure had since shrunk to $3.5 billion. The DOE, meanwhile, said it was considering a much smaller $2 billion loan with additional restrictions than were previously negotiated. The loan period would also be significantly shorter. Chrysler had sought the funds as a way to reduce the company's interest payments, which would have dropped by nearly 5 percentage points had the deal gone through.

Instead, Chrysler will use its own funds for capital improvements. The report says the company has nearly $11 billion in liquidity, though that figure includes $1.3 billion in an undrawn private loan.

Chrysler isn't the only automaker to walk away from DOE loans. General Motors pulled its application for a $14.4 billion loan last January. The funds would have gone toward retooling. The DOE and the Obama Administration have been hesitant to hand out more government money after the solar panel company Solyndra LLC received around $528 million loans before going bankrupt.Chrysler abandons plan seeking more federal loans originally appeared on Autoblog on Fri, 17 Feb 2012 09:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

RSS-Autoblog is offline  
Sponsored Links

Quick Reply

Register Now

In order to be able to post messages on the Hyundai Genesis Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome