Chrysler's Federal Energy Loan Application is in Good Status

Chrysler displayed clear foresight into the future of the auto industry when they applied for the U.S. Department of Energy for a loan to invest in the development of fuel-efficient vehicle technology. While this seemed like a great idea at the time, unfortunately, Chrysler's application had to be deferred for 24 months due to their bankruptcy and failing financial status. Now, Chrysler is back and ready to try, once again, for the loan, so they can continue to offer great vehicles with even better fuel economy.

During the span of 24 months when Chrysler has worked very hard to reestablish their presence in the auto industry, both financially and image wise. And now, it looks like their hard work is starting to pay off. Recently, Chrysler showed its first profit since coming back from bankruptcy. To be exact, they posted a profit of $116 million. And, as if that wasn't enough, Chrysler has also projected that they will be able to refinance the $7.5 billion that they received from the U.S. Treasury and Canadian government by the end of June.

Chrysler's hard work has not gone unnoticed either. U.S. Senator Debbie Stabenow has recognized the extent to which Chrysler has gone to shape up and reveled just how close they are to getting the green light from the U.S. Department of Energy. "They just have some work to do on their end on financing, but they are in great shape," she said. "Right now, every word we have is that they are in a good position."1

Sergio Marchionne, CEO of Fiat and Chrysler, said that the company will likely be approved for the loan once two conditions are met. The first condition is that Chrysler refinances all of their debt. The second is that they receive their anticipated investment from Fiat of $1.27 billion.

Several automakers have already been approved for loans from the U.S. Department of Energy, such as Nissan, Ford, and EV designer Tesla Motors. While GM did have an application, they withdrew it earlier this year.

It is exciting to think of what Chrysler could do with a loan from the U.S. Department of Energy. The innovation to Chrysler's lineup, and vehicles like the Sebring and the PT Cruiser, would be a game changer for sure. Either way, make sure to stay tuned for more news from Gillie Hyde Auto Group - 610 Happy Valley Road Glasgow, KY 42141.

Source: 1http://www.freep.com/article/20110510/BLOG40/110510024/1014/business01

Categories: Green, News, Chrysler

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