Auburn Hills, Michigan – Chrysler intends to pay back the loans provided by the U.S. and Canadian governments by the second quarter of 2011.

Chrysler Group said that, subject to market and other conditions, it intends to repay in full the outstanding obligations under the loans provided to it by the U.S. Department of the Treasury, and by the Canadian federal and Ontario provincial governments.

The payments will come from the proceeds of a new term loan facility and newly-issued debt securities to be offered and sold to institutional investors in a private offering, along with proceeds from an additional ownership interest in the company acquired by Fiat Group.

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