Chrysler Repays $7.6B Gov't Loans

Lee Iacocca would be proud: Chrysler has repaid loans totalling $7.6 billion to the American and Canadian governments, $5.9 billion of which is headed for the U.S. Treasury. The struggling carmaker filed for bankruptcy and was on the verge of collapse when the two governments stepped in with a bailout in 2009. With a new management team, an improved economy, and drastically improved sales, the company was able to switch to cheaper loans from banks and big investors, repaying the money it owed and saving on interest. President Obama called the repayment a “significant milestone,” although the U.S. still owns a stake in the company. Chrysler reported $116 million in earnings for the first quarter, its first profit since 2007.