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