Chrysler Paid Its Government-guaranteed Loans Off

By Author: Marty Vergel Baes
Total Articles: 423
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Chrysler has experienced has experienced virtual bankruptcy during the 1980s. However, it was able to recover from the financial blunders that confronted the company due to government-guaranteed loans. As Chrysler began to recover that time, its management has made sure that the loans they have would be paid before the due date comes. As a result of their will to bounce back, Chrysler successfully paid off these loans seven years before its due date. This event then served as the company’s turning point towards success. Their vehicles became attracted to most car finders and their dealerships’ offers of different auto financing options to Chrysler buyers further improved the company’s relationships with new car finders which eventually became their loyal customers.

Almost two decades after, Chrysler was again faced with the issue of bankruptcy. This time, the main factor which crippled the company’s financial status was the economic recession experienced ...
... by the US. Chrysler was actually not the only car maker who was on the brink of bankruptcy. General Motors was also on the same status. However, these companies were bailed out by the Obama administration and the Canadian government by providing them with loans in 2009. A few years after, the situation has revealed that history is repeating itself particularly for Chrysler. This was because Chrysler has paid its loan amounting to about $7.6 billion off last Tuesday using private money six years ahead of its due date.

As this event was now written on Chrysler’s history, a lot of car experts are wondering if this company would be able to fully repeat its history particularly on the issue of bouncing back from bankruptcy. This question leads expert to speculate as to how Chrysler’s SEO Sergio Marchionne would handle the company’s strategies given that he will be running Chrysler and Fiat this time.

Despite the doubts thrown against Marchionne’s ability to stir his company’s fate to success, there are still a lot of experts who believe that the CEO is capable of doing the necessary things for Chrysler and Fiat. These observers are quite optimistic in thinking that Chrysler would soon emerge as one of the leading car makers in the US despite the fact that foreign car manufacturing firms had been expanding their reach on the US market.