Chrysler’s loan repayment shows that the economy is on the mend

Article by Christian Andrei, on May 28, 2011

Chrysler Group LLC recently repaid $7.6 billion in U.S. and Canadian government loans, an accomplishment that vindicates the administration's decision to rescue Chrysler and further indicates that the economy is recovering, according to Vice President Joe Biden who spoke at the administration's weekly address on the radio and Internet. Biden delivered the address instead of President Obama, who went on a six-day trip to Europe.

Biden said that the resurgence of Chrysler and General Motors Co. after having exited bankruptcy in 2009 has allowed thousands of people to keep their jobs at the automakers, dealers and suppliers. Biden said that as a result of what the administration did, the auto industry is getting the strength to rise again.

He added that manufacturing is “coming back.” He also said that the recovering economy is “gaining traction.” For sure, the economy will be a major subject in the 2012 presidential election.

Interestingly, the Republican address had talked about job creation. The recession led to the loss of over 8.75 million jobs.

Last month, the unemployment rate was 9%. The Congressional Budget Office said that the U.S. Treasury granted $85 billion of commitments to the auto industry, including $64 billion to GM and Chrysler.

Biden said that back then the bailout was unpopular but Obama pushed through with the bailout as he wasn’t going to “abandon an industry that had meant so much to our economy, and so much to so many for so long."

Last Friday, Fiat SpA announced that it wants to purchase the remaining Chrysler stake owned by the U.S. government by the end of 2011, which means that it will then have a share of 57%.

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016