Report: Chrysler likely to receive U.S. technology loans

Article by Christian Andrei, on October 27, 2010

It appears that Chrysler is the next manufacturer who will receive U.S. technology loans. According to our sources, the manufacturer will receive a new federal loan in order to upgrade its factories in order to build more fuel efficient vehicles. Same sources confirmed the fact that Chrysler will likely receive the approval for new credit before General Motors does.

Due to the fact that GM is currently in the midst of preparing an initial public stock offering for mid-November, which means that the American manufacturer can’t take on the government awards without complicating the stock offering.

Apparently, Chrysler has applied for $10 billion in loans, still it is unclear how much money it will receive. If received, this loan will definitely be welcomed by investors as a sign of government confidence in the auto industry. 

Furthermore, the loan will enable Chrysler to accelerate the payment of some $7 billion in pricey government loans extended as part of bankruptcy. For those who don’t know, Chrysler still owes the Treasury $5.7 billion.

Chrysler is currently in the process of revamping its lineup, and it already revealed the following vehicles: 2011 Dodge Charger, 2011 Journey, 2011 Durango as well as the 2011 Jeep Grand Cherokee. [via autonews - sub. required]

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