Etobicoke, May 30, 2011
Archived - Minister Flaherty Welcomes Repayment by Chrysler of $1.7 Billion in Government Loans
Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.
The Honourable Jim Flaherty, Minister of Finance, today congratulated Chrysler Group LLC for its repayment of $1.7 billion in outstanding Canadian government loans following the completion of new refinancing transactions.
In 2009, during the depths of the global economic downturn, the Government of Canada and the Government of Ontario provided $1.7 billion in loans payable to Chrysler Canada Inc. through Export Development Canada (EDC). The federal government provided two-thirds of the loans, while the Ontario government contributed one-third.
On May 24, Chrysler Canada Inc. fulfilled its promise to repay its outstanding government loans, in addition to interest and other considerations. The outstanding loans have now been repaid in full, more than six years ahead of schedule.
“The return to taxpayers should not only be measured in terms of the loan repayment, but also in terms of the jobs and investments still in place today due to our Governments’ support for Chrysler,” said Minister Flaherty. “In fact, it is estimated that approximately 52,000 Canadian jobs were protected by government action to support the automotive industry. Our Government’s number one priority remains the economy. Our focus is to complete Canada’s economic recovery.”
“On my own behalf and on behalf of everyone at Chrysler Group, I would like to express the sincerest gratitude to Minister Flaherty and the Canadian government for their decision two years ago to help Chrysler,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “They gave us a second chance, something that happens rarely in life. And they gave us not only hope for our survival but also the opportunity to build a future. They demonstrated faith in our plan to turn Chrysler around and restore it to its rightful place. It was that hope and faith that allowed us to make good on our commitment and repay the governments in full.”
Through Canada’s Economic Action Plan, critical measures were taken to address the short-term financing challenges of automotive assemblers, parts manufacturers and consumers. The Government of Canada recognized the economic challenges faced by the auto sector and acted by providing leadership and support during the global financial crisis, including:
- Targeting support to automotive parts manufacturers by improving their access to financing through accounts receivable insurance offered by EDC;
- Making credit available to consumers and businesses across the economy through the Canadian Secured Credit Facility, including the financing arms of major auto and equipment manufacturers in Canada; and,
- Providing interim loans through EDC to assist the auto sector with restructuring.
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
To receive e-mail notification of all news releases, please register.