Treasury takes $1.6 billion loss on Chrysler loan

Treasury takes $1.6 billion loss on Chrysler loan

WASHINGTON – The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009.

Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.

Treasury said Monday that Chrysler repaid $1.9 billion of a $4 billion loan, which was extended before the company filed for Chapter 11. The government hopes to get another $500 million from the company that emerged from bankruptcy, Chrysler Group LLC.

Treasury officials said that the government had no plans to boost its stake in the new Chrysler to cover those losses. It also acknowledged another $1.9 billion in potential losses from a separate loan that had been made to the company that went through bankruptcy proceedings. It indicated slim hopes of recouping much if anything from that separate $1.9 billion loan.

The original $4 loan was made in January 2009, when the Bush administration was scrambling to rescue Chrysler, GM and their auto financing arms.

The Congressional Budget Office estimated in March that the government's $85 billion bailout of the automakers would cost taxpayers $34 billion.

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some jobs. Good work and we still own part of the company. How do we get our dividends?

Import crushing new Grand Cherokees are rolling off the assembly line since May 3 and are on the way to showrooms across North America and soon around the world.

Other nations treat their car industry like we used to treat our space program, it's time we start rooting for the home team, it might lead to more jobs and higher incomes.

That being said, Chrysler has a wave of shockingly good cars on the way before the end of the year. For about a year, Mercedes ran Chrysler righteously and we will finally see the results. These cars are so good they scared the royal court back in Stuttgart and they were forced to run off rogue product genius Wolfgang Berhard before he could threaten the status quo back in Germany.

There was a change of management.