Perhaps an early indicator that the United States and Canadian governments will be repaid in full, Chrysler Financial – the former lending arm of Chrysler – announced on Tuesday that it has repaid the U.S. Department of Treasury on a $1.5 billion loan received in January.
According to Reuters, Chrysler Financial has repaid the U.S. Treasury on a $1.5 billion loan, presumably well ahead of schedule. Chrysler Financial received the loan in January as part of the government’s Troubled Asset Relief Program.
Chrysler Financial used the government loan to help secure dealer and retail financing, but has since been displaced by GMAC as Chrysler’s preferred lending arm. Chrysler Financial continues to offer dealer insurance and alternative financing for retail buyers.
Chrysler Financial is fully owned by Cerberus Capital Management, the former owners of Chrysler.
Although the news is encouraging, it remains to be seen if loans doled out to Chrysler, General Motors and GMAC will also be paid back.
