Chrysler gets even by Hock in United States

STERLING HEIGHTS, me. -With just a few keystrokes computer in an Office at the headquarters sent Chrysler Group LLC $7.6 billion in the U.S. and Canadian Governments on Tuesday, paying himself from most bailout money, which the company from financial disaster two years ago saved.

The repayment - for weeks expected — is a big step in the automaker of the unlikely comeback. Chrysler went from a company that almost ran out of cash and survived bankruptcy to one of his aging is revamping and published last quarter 2009 its first net profit in five years.

It removed the stigma of being a Government ward. It means the company must be on own and continue to a lineup to overtake, which still depends on old Chrysler designs and larger vehicles that fell out of favor due to the high gasoline prices.

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Chrysler took $10.5 billion from the Government two years ago survive, and before some of the money was repaid. On Tuesday, it drew a balance $5.9 billion to the U.S. loans and $1.7 billion to the Governments of Canada and Ontario.

"Chrysler repayment of outstanding loans for the U.S. Treasury and American taxpayers marked an important milestone for the turnaround of Chrysler and the countless communities and families who rely on the American automotive industry" President Barack Obama said in a statement.

Order to remove the Governments, Chrysler raised $3.2 billion through the sale of a bond and took $ 3 billion in lower interest bank loans. It will use also a 1.3 billion dollar investments by Fiat.

But government ownership with the loan repayment ends not. The US Treasury has 8.6 percent of Chrysler, received it in exchange for the bailout. About $2 billion the Government aid was part of Chrysler, which have been left behind in bankruptcy. The money is not repaid were. Some of them could be recovered if the Government sold the Chrysler stock in an initial public offering. But the Government admits that it unlikely that everyone will get the money back.

Chrysler wanted absolutely to repay of their loans partly due to the high interest rates of around 12 per cent, Governments the the company $1.2 billion in costs last year. The interest rates on new loans and bonds are 6 to 8 percent, saving of Chrysler 300 million in payments per year. She will also shed its Government ownership, because some customers oppose the bailout.

The loan repayment happened Tuesday morning. It went from the banks and Fiat to Chrysler's accounts and electronically to the Governments was transferred, said a Chrysler of spokeswoman for.

He raised to lose the moral of the Chrysler workers and traders, who arrived two years ago, close to everything.

The announcement of the repayment took place in a factory in Sterling Heights, Michigan, where Chrysler assembly line shutdown so that saw 1,100 workers. Cheers broke when Ron Bloom, Assistant to President Obama for type of production, announced that the money had changed hands.

Many people wore buttons with the word "Paid" on it, along with date of Tuesday.

Charles Mason, only six months working on the Assembly line, said he.

"I feel like it give me job security," Mason, 34, said of the Southfield Michigan "I am happy to be part of it."

Carl Galeana, who Chrysler and Fiat dealers in Michigan and Florida, said on Monday that Marchionne everything that he promised has done, the company to save an associated Press reporter. Vehicles such as the Jeep Grand Cherokee SUV, which was revised by Chrysler have helped return the company to profitability.

But Galeana and others know, depends on the company's future success models from Fiat, in particular small and medium-sized segments in which Chrysler remains unproven.

"What we have to show the public we have damn products," he said. "This is the kind of stuff that comes through the pipeline."

Chrysler action is his future in doubt to put the latest in the comeback of the Detroit auto industry after the recession. General Motors co. went through bankruptcy and got a bailout 49.5 billion in U.S. $ in exchange for 61 percent give the Government an equity stake. The Treasury Department now owns 26.5 percent of GM after the sale of part of the participation in November.

The third Detroit car makers, Ford Motor Co., are looking for any rescue operation.

It is not the first time Chrysler had to be rescued by the U.S. Government. In the early 1980s the company under the direction of legendary pitchman Lee Iacocca, off $1 billion in Government guaranteed loans paid in three years.

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