By Candese Charles
The U.S Department of Treasury announced on Tuesday that Chrysler Group LLC has managed to repay its Troubled Asset Relief Program (TARP) loans, six years ahead of schedule and only two years after a tough bankruptcy.
Though the loans Chrysler received are set to mature in 2017, Chrysler Group LLC paid back $5.1 billion in TARP loans and will not put the remaining $2.1 billion in loans to use, thus terminating their commitment.
In total, the Treasury Department has received $1.5 billion in interest and fees, including $865 million from Tuesday’s transaction with Chrysler.
In a statement, President Barack Obama regarded Chrysler’s repayment as a “significant milestone for the turnaround of Chrysler.”
In the emerging days of Obama’s presidency, the American auto industry was in danger of collapsing. President Obama provided support to both General Motors (GM) and Chrysler in an attempt to prevent more than 1 million American jobs from being lost.
The Treasury Department initally committed a total of $12.5 billion in federal funds to Chrysler Group LLC under TARP’s Automotive Industry Financing Program (AIFP).