WASHINGTON (Reuters) - The Treasury department said on Tuesday that automaker Chrysler Group LLC has repaid $5.1 billion in bailout loans and ended its right to draw a remaining $2.1 billion.
The government had committed a total $12.5 billion to Chrysler under the Troubled Asset Relief Program, known as TARP, and the company has now returned more than $10.6 billion of that in principal, interest and canceled commitments.
Treasury continues to hold a 6.6 percent common share stake in Chrysler, which now is on firmer ground financially and is deepening its ties to Italian automaker Fiat SpA.
"Treasury is unlikely to fully recover its remaining outstanding investment of $1.9 billion in Chrysler," Treasury said in a news release.
Under original terms of the TARP loans, Chrysler had until 2017 to repay its debts. Treasury Secretary Timothy Geithner hailed the company's decision to repay before that date.
"Chrysler's early repayment of its outstanding TARP loans is an important step in the turnaround of this company and the resurgence of the auto industry," Geithner said in a statement.
The Obama administration provided support for both Chrysler and General Motors when it appeared the domestic auto industry might be near collapse because of a falloff in sales during the 2007-2009 financial crisis.
Treasury said that since GM and Chrysler emerged from bankruptcy in mid-2009, the industry has added an estimated 115,000 jobs.
(Reporting by Glenn Somerville, Editing by Leslie Adler)
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