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Chrysler Paying Off Debt Today

Chrysler is set to pay back the United States government today for the bailout loans that they were given in order to keep from going under in 2009. This is going to allow Fiat to increase its stake into the company, which is exactly what Chrysler had hoped for when they finally recovered enough funds to pay back the money that they were given. 

The company was able to raise around $7.5 billion in loans, junk bonds, and a line of credit in order to pay back what they owed. They did this in order for Fiat to be able to increase their stake in Chrysler to 46%, which is something that they have both been wanting to happen for a very long time. In addition since Chrysler is going to pay off the debt now, they are going to save themselves around $300 million in taxes and interest on the amount that they were loaned. 

Fiat is planning to have around 51% of the company by the end of the year if everything goes as it should. This is going to make Fiat a huge player in the US auto market, which is what they were hoping to have in the market. In addition, Fiat hopes to open up around 160 dealerships in the United States that will focus on selling Fiat and Chrysler vehicles to the consumers in the area. 

This is extremely good news for Chrysler who has been slowly making their presence in the market even more dominant with their new offerings that are in part thanks to the new technology that Fiat is offering the brand. In paying off the loans that they have out, it is also going to go a long way with the public since they are not going to be in debt to the government, something that most people were frowning upon when they looked at automakers.