Government ends Chrysler investment

WASHINGTON – the Treasury Department said on Thursday that it has finished its investment in Chrysler LLC after Italian automaker Fiat SpA of Government-purchased remaining holdings in the car company.

Fiat $ 560 million to the Treasury Department for the Government paid 98,000 shares. Fiat, the company has run since it emerged from bankruptcy protection in June 2009.

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Treasury provided a total of $12.5 billion in Chrysler and whose financing arm after hampered the recession, auto sales and Chrysler and GM sent to the brink of collapse. The money came from the Government $700 billion Bank Bailout Fund.

Since then, has $11.2 billion of aid were repaid, Treasury says. Chrysler $5.1 billion in loans from the Government paid back in May. The Treasury said, that probably the remaining $1.3 billion to recover it won't.

Thursday, the Canadian federal and Ontario announced that they have sold its remaining shares in Chrysler to Fiat for $140 million. The money is loans given to the U.S. based automaker two years ago the final repayment of the Government of Canada.

The purchase of U.S. and Canadian Governments are inserts Fiat 53.5% ownership of Chrysler. This should increase before the end of the year to 57 percent as Chrysler begins production of a small car 40 mpg in the United States

Chrysler has made a remarkable turnaround from two years ago, when it was rescued by the Government.

The company earned $116 million profit in the first quarter and 2011 forecast profit of $200 million to 500 million. The company has under the leadership of CEO of Fiat, Sergio Marchionne reduce costs, and most of its lineup of Jeep, Chrysler, Dodge and RAM vehicles revived the sales of rehabilitation.

Its sales increased by 30 percent in June compared to the previous year.

Fiat, a 20-percent stake in Chrysler received after the bankruptcy in exchange for management expertise and technology. The Italian automaker its share gradually raised, criteria laid down by the Government through fulfillment.

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