Chrysler and Tesla trade barbs over payback definition

Article by Anita Panait, on May 26, 2013

Chrysler Group LLC and Tesla Motors are trading online barbs over the definition of “payback.” Tesla, which recently sent $452 million to the United States Department of Energy as repayment of its remaining loan with interest, described itself as "the only American car company to have fully repaid the government.” Chrysler, however, begs to disagree.

Four hours after Tesla made the statement, Chrysler issued its own, saying “Not exactly, Tesla.” Tesla's "information is unmistakably incorrect," Chrysler said in a blog post. Chrysler has its point. In 2009, Tesla was granted a federal loan as part of a DOE program to promote advanced vehicle development.

That same year, Chrysler received billions of dollars of loans from US and Canadian governments to avert a possible collapse. Two years later in 2011, Chrysler repaid $7.6 billion in federal loans. Chrysler asked in its blog post, “short memory or short-circuit?"

Chrysler and Tesla are lead by media-savvy chief executives in the personas of Sergio Marchionne and Elon Musk. Many analysts credit Marchionne’s hands-on and outspoken style as critical to Chrysler’s success. Musk, on the other hand, is as fiery as Marchionne. Musk has been more than willing to engage netizens in online arguments or to parade Tesla’s successes. This time was no exception and Musk again made use of social media to defend Tesla’s press release.

In retaliation to Chrysler’s barbs, Musk remarked that Chrysler could not be considered as a US carmaker since it is a division of Italian automaker Fiat, adding that it never fully repaid its loans. He also has a point. The Treasury Department committed a total of $12.5 billion in funds to Chrysler.

The "good" assets of Chrysler back then were used to establish the current company. On the hand, billions of dollars of federal loans were forged into another entity called "Old Chrysler." The US government has already recovered around $11.2 billion of the funds provided to Chrysler. In 2011, Treasury disclosed that it may not fully recover $1.3 billion owed by Old Chrysler.

Topics: chrysler, tesla

If you liked the article, share on:

Comments

Recommended

Here comes Blue Arrow, a Porsche 911 (991) Turbo S tuned by Edo Competition that is even quicker and faster than the 911 GT2 RS. Moreover, it is definitely the...
by - July 24, 2017
Earlier this year, Ford had already begun deliveries of the Ford GT. However, the company has been experiencing some delays at their facility in Canada. This means that the next...
by - July 24, 2017
BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
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