Chrysler has now paid off bailout loans two years after emerging from bankruptcy
It’s official. Chrysler has paid off some $7 billion that it was loaned by the federal government in 2009 in order to keep the company afloat while it went through a managed bankruptcy and restructured.
The bailout has been contentious for some, with several GOP presidential hopefuls having declared that the auto giants should have been allowed to fail.
Democrats are praising the pay off — which amounts to $5.9 billion to the U.S. and $1.6 billion to the Canadian government, according to the Associated Press — with former Gov. Jennifer Granholm taking a swipe at Republicans earlier Tuesday on her Facebook page.
President Barack Obama has gotten into the game, now, releasing the following statement:
Chrysler’s repayment of its outstanding loans to the U.S. Treasury and American taxpayers marks a significant milestone for the turnaround of Chrysler and the countless communities and families who rely on the American auto industry. This announcement comes six years ahead of schedule and just two years after emerging from bankruptcy, allowing Chrysler to build on its progress and continue to grow as the economy recovers. Supporting the American auto industry required making some tough decisions, but I was not willing to walk away from the workers at Chrysler and the communities that rely on this iconic American company. I said if Chrysler and all its stakeholders were willing to take the difficult steps necessary to become more competitive, America would stand by them, and we did. While there is more work to be done, we are starting to see stronger sales, additional shifts at plants and signs of strength in the auto industry and our economy, a true testament to the resolve and determination of American workers across the nation.