This week’s repayment of $7.6 billion in government loans by Chrysler Corporation six years ahead of schedule is evidence of a resurgent U.S. manufacturing sector, Vice President Joe Biden said in Saturday’s White House address.
“Manufacturing is coming back. And our economy is recovering and it’s gaining traction,” Biden said.
In a statement, Chrysler Group LLC announced that it has repaid in full its $7.6 billion in taxpayer loans. The U.S. Treasury received $5.9 billion, and the Canadian government, $1.7 billion.
In 2008, amid the financial crisis, both Chrysler and GM were running out of money, and the U.S. government stepped in with $17.4 billion in initial funding under the Troubled Asset Relief Program (TARP) authority, according to the Congressional Oversight Panel.
A year later, Chrysler was forced into a Chapter 11 bankruptcy to allow for restructuring under terms assigned by the U.S. Treasury.
“When President Obama and I came into office, we faced an auto industry on the brink of extinction. Total collapse,” Biden said.
A strategic alliance was formed with Italian automaker Fiat S.p.A., enabling Chrysler to benefit from Fiat’s management and technological expertise.
A revamp of Chrysler’s product lineup of vehicles promising greater fuel efficiency, has led to increased sales and a brighter future for the company.
Fiat gained a majority stake (51 percent) in Chrysler last week when it purchased another 16 percent shares in the company. Fiat has said that it plans to purchase a further 6 percent by the end of this year.
President Barack Obama’s decision to help the auto industry was widely criticized at the time of the bailout.
Obama said in his recent statement that Chrysler’s repayment “marks a significant milestone for the turnaround of Chrysler and the countless communities and families who rely on the American auto industry.”
“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,” Obama said.
“Manufacturing is coming back. And our economy is recovering and it’s gaining traction,” Biden said.
In a statement, Chrysler Group LLC announced that it has repaid in full its $7.6 billion in taxpayer loans. The U.S. Treasury received $5.9 billion, and the Canadian government, $1.7 billion.
In 2008, amid the financial crisis, both Chrysler and GM were running out of money, and the U.S. government stepped in with $17.4 billion in initial funding under the Troubled Asset Relief Program (TARP) authority, according to the Congressional Oversight Panel.
A year later, Chrysler was forced into a Chapter 11 bankruptcy to allow for restructuring under terms assigned by the U.S. Treasury.
“When President Obama and I came into office, we faced an auto industry on the brink of extinction. Total collapse,” Biden said.
A strategic alliance was formed with Italian automaker Fiat S.p.A., enabling Chrysler to benefit from Fiat’s management and technological expertise.
A revamp of Chrysler’s product lineup of vehicles promising greater fuel efficiency, has led to increased sales and a brighter future for the company.
Fiat gained a majority stake (51 percent) in Chrysler last week when it purchased another 16 percent shares in the company. Fiat has said that it plans to purchase a further 6 percent by the end of this year.
President Barack Obama’s decision to help the auto industry was widely criticized at the time of the bailout.
Obama said in his recent statement that Chrysler’s repayment “marks a significant milestone for the turnaround of Chrysler and the countless communities and families who rely on the American auto industry.”
“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,” Obama said.
