In a
surprise announcement Chrysler Group has dropped its bid
to gain a US$3.5 billion loan from the Department of
Energy; the reasons are as yet unclear, but in its
statement the automaker says that the decision won't
affect its plans to introduce hybrid or electric
vehicles.
Originally Chrysler Group has sought US$7 billion in
loans, this was later parried down to US$3.5 billion but
negotiations have dragged on continually. Media sources
reported from the Detroit Motor Show, quoting government
sources, that talks were still on going, but there has
also been media speculation that Chrysler Group's
resurgent form in terms of sales, revenue and profits
meant that there was opposition within government to
dishing out what could be a politically sensitive loan.
The terms of the loans
are seen as somewhat restrictive as they mostly cover
retooling and aspects of production. Out of the original
US$25 billion put aside by the Department of Energy
plenty is remaining: Ford received US$5.9 billion and
Nissan US$1.4 billion while two hopefuls, Fisker and
Tesla, have also received around one billion between
them.
Chrysler Group LLC has
decided to withdraw its application for an Advanced
Technology Vehicles Manufacturing loan from the
Department of Energy. The Company remains confident in
its strategy to bring competitive, fuel-efficient
vehicles and technologies to market on schedule. This
decision will not impact Chrysler's ability to achieve
its previously announced business plan targets.
Since it was formed in June 2009, Chrysler Group LLC has
announced investments of more than $4.5 billion; added
more than 9,400 jobs; repaid U.S. Treasury and Canadian
government loans in full, with interest, six years
early; launched 16 new or significantly refreshed
vehicles in our first 19 months; launched production of
the all-new C-segment Dodge Dart, which is being built
in the U.S. using a Fiat-based architecture and
fuel-efficient technology; and in 2011, Chrysler Group
U.S. sales increased 26 percent, the largest percentage
sales gain of any full-line manufacturer.