Chrysler’s Projects Slow Down Due to Loan Failure image

Sergio Marchionne, Chrysler’s CEO, declared that the company’s new projects and new jobs will be slowed by the rejection of $3.5billion in Energy Department retooling loans.

“It’s certainly going to slow it down,” Marchionne said Wednesday, March 28th. “You decide whether you want to add jobs this year or 12 months from now. And the risk that you are running is that in a 12-month period, options open.”

Marchionne still plans to add extra 2,000 jobs in Michigan until 2014. The United Auto Workers contract approved last fall also included that Chrysler will add 2,100 jobs nationally, from which 250 at Trenton North and 1,100 in Detroit, at the Jefferson North Assembly Plant.

In February 2012 the company abandoned the application for the $3.5 billion loan to finance the building of more fuel-efficient vehicles in the United States. Chrysler declared that the terms of the loan were too restrictive and that the government had reduced the amount it was willing to lend to under $2 billion.

“To borrow a dollar, I’d have to mortgage my future, and it wasn’t worth it. If you really want manufacturing in the United States, you have to put your money where your month is,” Marchionne said. “If you really care about the U.S., force the investment process here. It’s not a bad place to invest.”