SAN FRANCISCO - Chrysler Group LLC's Chief Executive apologized Saturday for the high interest rates describe bailout loans extended by the United States and Canadian Governments in 2009 as "Shyster loans."
"Yesterday, in response to a question about Chrysler's Government I phrase on the interest rate will loan, our Government loans, raised the concern" CEO Sergio Marchionne said in a statement. "I regret the comment I consider inappropriate."
Shyster is a derogatory term for an unscrupulous lawyer or politician. He used the term at least three times in his remarks at an industry conference Friday.
Chrysler will in 2010 $1.23 billion, or approximately 3.4 million $ per day, interest payments on its debt. It endeavours to refinance those loans prior to a planned IPO in the second half of 2011.
In his statement Marchionne said the company grateful for financial support from the Governments of the United States and Canada at a time when the company had no other options. The loans were to keep part of a bailout of the automaker from collapse.
Chrysler emerged from bankruptcy in June 2009 and is now under the management control of the Italian Fiat SpA, which has a 25 percent stake in the U.S. automaker. Marchionne is CEO of Fiat.
"As the only Parties ready, draw the risks relating to Chrysler recovery plan, the two Governments charged interest rates, although currently corresponding above current market conditions," Marchionne said.
"Due to this changed market conditions and improving our performance and Outlook Chrysler intends to repay of these loans fully at the earliest opportunity allows supporting U.S. and Canadian Governments," he added.
Copyright 2011 Thomson Reuters.
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