Yes, it seems Chrysler is on the hunt for more money from the government — but this isn’t a bailout. Like other automakers, including Ford, Chrysler is seeking for loans from the Department of Energy, which will reportedly help the company fast track fuel-efficient vehicle programs.
An Automotive News report has found that Chrysler has applied for around $10 billion in loans from the Department of Energy. AN sources say the funding will help with plant retooling and free up some cash flow to allow the Auburn Hills-based automaker to dedicate extra payment to its current outstanding loans drawn from the United States Treasury. The final DOE loan amount hasn’t been disclosed, but the U.S. agency is in a position to approve either some or all of the $10 billion amount.
“Our application covers a wide variety of technologies including electric vehicles, (gasoline/electric) hybrids and advanced gasoline engine technology,” a Chrysler spokesperson told AN.
Chrysler’s loan amount will be drawn from the $25 billion earmarked for advanced vehicle technology by the DOE, funding that has already been tapped by Ford, Fisker, Nissan, and Tesla. General Motors has sent four applications seeking $14 billion (including a request from Delphi) but has not received an ultimate decision yet as taking on additional loans would complicate the automaker’s planned initial public offering. There is around $17 billion still available for withdrawal, but with inquiries surpassing the unused total, the DOE will eventually have to make cuts.
Source: Automotive News (Subscription required)