Farmington Hills, Michigan – Chrysler Financial has repaid in full the US$1.5 billion lent to it by the U.S. government under the Troubled Asset Relief Program (TARP). The company originally secured TARP funding in January 2009 to support Chrysler LLC in its efforts to remain viable.
Chrysler Financial used the TARP loans to fund over 85,000 consumer loans to support the sale of Chrysler, Jeep and Dodge vehicles for Chrysler LLC.
The TARP funds were kept separate and were not mingled with Chrysler Financial’s operating cash or balance sheet. Funds to repay the loan were obtained through the completion of an AAA-rated automotive asset-backed securitization through the Term Asset-Backed Securities Loan Facility. The original TARP loan contained provisions that increased the company’s costs over time, providing motivation for quick repayment. Chrysler Financial no longer has any TARP loans outstanding.