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:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries