Archive for February, 2009
Chrysler granted $1.5 billion federal loan
The new arm of Chrysler Financial Services LLC will receive $1.5 billion worth of federal loan, the US Treasury Department announced.
The five-year loan from the country’s bailout funds will be used to accommodate more loans to potential vehicle buyers. The loan, which was a part of the $700 billion Congress fund to rescue financial institutions, is contracted under a flexible interest rate.
Chrysler Financial was not the sole benefactor of the funds. Automotive companies like General Motors and Chrysler LLC were also given emergency loans. GMAC Financial Services, likewise, was also given financial aid.
Chrysler received its $4 billion in federal funding last January 2. The company announced that it will use the money to pursue its current automotive operations. Chrysler Financial received funding after it suddenly backed out of business in August. The said break down in the company’s financial arm cost Chrysler LLC more than 20 percent of its expected sales.
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