The U.S. Treasury Department announced on Friday that it has granted Chrysler Financial a $1.5 billion loan. The $1.5 billion is in addition to the $4 billion Chrysler LLC has already received, and will be used to extend financing to Chrysler buyers.
Chrysler was seeking an additional $3 billion in loans, but the Michigan automaker will have to make due on half that amount — at least for the time being. As with GMAC’s $6 billion government aid package, Chrysler Financial’s chunk will be carved out of the $700 billion TARP fund.
The Treasury Department described the loan as “part of a broader program to assist the domestic automotive industry in becoming financially viable”, according to Automotive News. The loan is for five years with a flexible interest rate.
However, it remains possible that Chrysler could still receive the full $3 billion it was looking for. A much farther-reaching loan program is expected to be launched by the Federal Reserve in the coming weeks.
01/16, 3:03 PM
posted by:
yarddog82abn
Chrysler dose need to step it up, they need to get more aggressive in financing…
01/16, 3:11 PM
posted by:
Borat
Imagine bonus to a guy who runs ChryCo financial? He is probably buying S550 AMG as we speak
01/16, 4:06 PM
posted by:
Gundy
With some of their new EVs (hopefully) coming soon, this could be a good year for ChryCo. I hope it is anyway.
01/16, 4:06 PM
posted by:
Zcarsales
Yarddog, Chrysler has stepped it up in financing. Its called “buying deep,” and they’re getting their you-know-what’s slapped because of defaulted loans.
I heard a rumor that Chrysler Finance, in my region, is out of money to loan.
01/16, 4:13 PM
posted by:
johnnycanuck
Do they have any new introductions scheduled in the next 6-12 months? Of course they need to finance, but they desperately need new product even more.
01/17, 7:29 PM
posted by:
CarResearcher
The welfare check will be gone in a month. Chrysler R.I.P.