Chrysler refused U.S. Department of Energy loan to fund the development of gas-electric hybrids and electric vehicles, because the terms were very restrictive and would have negatively affected the company’s operational flexibility.
Chrysler needed the load to be competitive and in 2008 it applied for a more that $ 7 billion loan under the DOE’s Advanced Technology Vehicle Manufacturing program, but reduced it to less than $3.5 billion. In the end the company refused the loan, stating that it can develop competitive, fuel-efficient vehicles without the federal loan.
“While we were continuing to work with Chrysler to come to an agreement, we are pleased that they are capable of achieving their business goals without department support,” said Damien LaVera, a DOE spokesman.
In May 2011 the company managed to repay the loans received from Obama administration and the Canadian government, but not yet what it received from the Bush Administration. 2011 was also the year when Chrysler earned $183 million, being the first profitable year since 2005.
“The company is in much better financial health than it was in 2009 and to me appears to be a perfect candidate for a 136 loan from the DOE,” U.S. Rep. John Dingell, D-Mich., said in a statement.