Two years after accepting help from the Canadian and American governments, Chrysler has announced its intention to repay the entirety of the 6.6 million dollars loans during the second quarter of 2011. To do so, Chrysler will borrow money from private investors.
The move would allow Fiat to acquire a 46% stake in Chrysler and later a 51% stake as well as pave the way to obtaining a loan of up to 3.5 billion from the Department of Energy. The latter would support Chrysler in its efforts to develop competitive, fuel-efficient models.
From an economic standpoint, the refinancing would considerably lower the interest rate and help the automaker return to profitably, repay loans faster and facilitate a potential return to the stock market.
The move would allow Fiat to acquire a 46% stake in Chrysler and later a 51% stake as well as pave the way to obtaining a loan of up to 3.5 billion from the Department of Energy. The latter would support Chrysler in its efforts to develop competitive, fuel-efficient models.
From an economic standpoint, the refinancing would considerably lower the interest rate and help the automaker return to profitably, repay loans faster and facilitate a potential return to the stock market.