Chrysler Group LLC, newly profitable and confident in its revamped products, will soon sever its ties with the U.S. government after most -- but not all -- of the bailout loans it got two years ago are repaid.
The U.S. government will ultimately lose around $1.3 billion in the deal. The government authorized $12.5 billion in loans for Chrysler from the end of 2008 through Chrysler's bankruptcy filing in the summer of 2009. The Treasury Department said Thursday that Chrysler has repaid $11.2 billion -- including $2 billion in undrawn loans -- but it is unlikely to recover the rest.
"We didn't do this to maximize return. We did it to save jobs," Treasury Secretary Timothy Geithner said during a trip to Detroit in April. On Thursday, Geithner noted that GM and Chrysler are hiring again and making new investments at U.S. plants, which wouldn't have happened had they gone bankrupt.
Fiat bought out the Government's remaining interest in Chrysler. Where do you think those jobs will go now!?!
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