Saturday, June 13, 2009

U.S. Treasury revises amount of loan to Chrysler

The U.S. Treasury Department said on Friday that a loan it is making to a reorganized Chrysler Group LLC totals $6.642 billion instead of $6.943 billion that it had estimated on May 27.

A department official said the initial figure was simply an estimate made last month and that the figure announced on Friday was a final one.

The Obama administration directed a fast-track reorganization of the automaker, which entered bankruptcy on April 30. Italian automaker Fiat bought most of Chrysler's assets, but the U.S. and Canadian governments each will end up with small equity stakes in the new company.

Fiat Chief Executive Sergio Marchionne is to become Chrysler's chief executive officer. The automaker's former CEO, Bob Nardelli, had previously said he would leave the company once the sale is completed.

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