25 May 2011

Chrysler repays bailout money ahead of schedule

1:39 pm on 25 May 2011

US car maker Chrysler has repaid its government bailout loans six years ahead of schedule.

A severe downturn in sales during the global downturn forced Chrysler, and its rival General Motors, to turn to the US and Canadian governments for help to stay afloat in 2009.

Chrysler has repaid $US5.9 billion to the United States government and $US1.7 billion to Canada, the BBC reports.

The carmaker received cheaper loans from institutional investors and banks to repay the governments, and says it will save hundreds of millions of dollars a year in interest payments.

The US government stills holds a 7% stake in the company, which it wants to sell as soon as practicable.