Chrysler to repay government $300 million
Mon, 23 May 2011 22:50:04 GMT —
Chrysler CEO Sergio Marchionne says his company will save $300 million in interest per year when it repays government loans on Tuesday.
The company will repay roughly $7.5 billion in loans to the U.S.and Canadian governments. Chrysler is taking out new bank loans and selling bonds to make the payment.
Chrysler got about $10.5 billion from the U.S. to survive bankruptcy in 2009. It has repaid some of the money and plans to give the U.S. $5.9 billion on Tuesday.
The company still owes the U.S. government $2 billion. The government could get some of that back by selling its 8.6 percent stake in Chrysler.
Chrysler has said it's eager to pay back its government loans because they have high interest rates and they angered some consumers.