Chrysler to repay $7.5B in loans

MACOMB TOWNSHIP, Mich. — Chrysler says it plans to repay $7.5 billion in Canadian and U.S. government loans on Monday.

MACOMB TOWNSHIP, Mich. — Chrysler says it plans to repay $7.5 billion in Canadian and U.S. government loans today.

Chrysler CEO Sergio Marchionne says his company will save $300 million in interest per year after it replays the loans.

The company is taking out new bank loans and selling bonds to make the payments.

Chrysler took $10.5 billion from the U.S. government to survive two years ago. It has repaid some of the money and plans to give the U.S. $5.9 billion.

It will also pay $1.6 billion to the governments of Canada and Ontario. Canada got a 2.2 per cent stake in Chrysler and could get more cash in the public stock sale.

Chrysler has said it’s eager to pay back its government loans because they have high interest rates and they angered some consumers.