Chrysler Set To Receive $10b In Government Loans

Edward Niedermeyer
by Edward Niedermeyer
chrysler set to receive 10b in government loans

The recent bailout of America’s auto industry began with approval of so-called “Section 136” loans to help automakers retool factories for higher-efficiency automobiles. Ford, Nissan, Tesla and Fisker have already received their portions of the Department of Energy loans, but GM and Chrysler have had their payouts delayed due to the program’s strict “viability” requirements. But now Reuters reports that Chrysler’s request for $10b in low-cost government retooling loans is nearing approval. It’s not clear how much of that $10b will be approved, but according to Pentastar spokesfolks

Our application covers a wide variety of technologies including electric vehicles, (gasoline/electric) hybrids and advanced gasoline engine technology

Chrysler still owes some $5.7b to the US Treasury, and the cost of servicing that debt (interest on ChryCo’s existing government debt ranges from 7.22 to 14.33 percent) is considered a major reason for Chrysler’s second-quarter loss this year. GM is also seeking over $10b in 136 loans, but with only $16.5b remaining in the $25b 136 fund, either Chrysler or GM will have to receive less than their entire request. GM’s request will reportedly be approved sometime after Chryslers.

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  • AaronH AaronH on Oct 27, 2010

    So they can pay off costly taxpayer money with free taxpayer money. Americans are truely too stupid to be free.

  • Stuki Stuki on Oct 27, 2010

    While non of the "experts" that BarryO invited to the White House to educate him on the "Financial System", despite trillions of Benny B's freshly printed greenbacks in their reserve vaults, find either of these make work shops worthy of even a measly $10 billion in credit. I guess they figure it's better my kids' tax money, than their own bonus money. And who can blame them. It's not their fault they live in a world of public school indoctrinated, progressive nonsense regurgitating, halfwits, proudly displaying the only right they still have left: Voting for a bunch of idiots.

    • INeon INeon on Oct 28, 2010

      Take. A. Laxative. Exorcise those demons. This message brought to you by the letters: G, E, and D.

  • Dan Dan on Oct 27, 2010

    We were sold 25 billion dollar loan program as part of their plan to save the US auto industry. And 1.6 billion went to Nissan, another billion went to Tesla and Fisker - who don't even make cars yet - and here comes 10 billion for Fiat and the UAW pension fund. I don't know who should be more outraged, the people for the bailout or people against it.

  • Pgcooldad Pgcooldad on Oct 27, 2010

    Not much left since Ford got to it first. Oh yeah, they didn't "take" any government money. They just filled out different forms.