Chrysler to Pay Back Loans

Although the rhetoric at the time was all about “bailout,” and while that term seemed to indicate that the companies in question—Chrysler and GM—were getting a “free ride” on the backs of the taxpayers of the U.S., Canadian federal, and Ontario governments, in point of fact it was a loan.

Although the rhetoric at the time was all about “bailout,” and while that term seemed to indicate that the companies in question—Chrysler and GM—were getting a “free ride” on the backs of the taxpayers of the U.S., Canadian federal, and Ontario governments, in point of fact it was a loan.

Rather than risking the collapse of the North American auto industry, wiser minds prevailed. Rather than risking having thousands and thousands of workers thrown out of work—not only at the vehicle manufacturing companies, but at the supplier companies, as well as up and down Main Street, from supermarkets to gas stations, from dealerships to donut shops—wiser minds prevailed.

2

This morning Chrysler Group LLC announced that it intends to pay back the loans during the second quarter of 2011, that it will repay the loans “in full and to pay related fees and expenses.”

It has received additional investment from Fiat and it is working out some alternative financial papers.

It is paying back the loan.

And where would we be had the loans not been available?

Well, to use a euphemistic term used by our friend Peter DeLorenzo, “Not Good.”