Chrysler Financial said Tuesday it reimbursed the federal government $1.5 billion, becoming the first auto-sector company to pay off the loans provided by the Treasury Department.
The former primary lending arm of Chrysler LLC received the loan on Jan. 16 through the Treasury's Troubled Asset Relief Program.
The money was plowed into new consumer incentive programs and used to fund 85,000 consumer loans for the purchase of Chrysler cars and pickup trucks. Chrysler Financial had five years to pay off the loan.
The reimbursement still offers little insight into the future of Chrysler Financial, which was replaced by GMAC LLC as the primary lending unit for Chrysler in May as part of the automaker's bankruptcy reorganization process.
Chrysler Financial continues to write some loans and work with dealers. Last month, it dropped its application to become an industrial bank, which would have given it access to more liquidity.
