Government of the United States ends Chrysler investment

WASHINGTON – the Treasury Department said Thursday it has completed its investment in Chrysler LLC after the Italian automaker Fiat SpA acquired the remaining holdings of US Government car company.

Fiat paid 560 million dollars to the Treasury Department for 98,000 shares of Government. Fiat has run the company, since it emerged from bankruptcy in June 2009.

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Treasury provided a total of $ 12.5 billion for Chrysler and its financing arm after the recession hampered sales of cars and sent Chrysler and General Motors on the brink of collapse. The funds came from the Bank's Rescue Fund of 700 billion dollars of the Government.

Since then, has been repaid $ 11.2 billion of assistance, Darling says. Chrysler repaid 5.1 billion in loans from the Government in May. The Treasury said that probably won't recover the remaining 1.3 billion.

Also Thursday, the Governments of Ontario and federal Canadian announced that they sold their remaining shares in Chrysler to Fiat for $ 140 million. Money is the final repayment of loans by the Government of Canada that were given to the U.S. automaker two years ago.

The purchase of shares of u.s. and Canadian Governments gives 53.5% Fiat property of Chrysler. That is likely to rise to 57% by the end of the year when Chrysler begins production of a small car for 40 mpg in the United States.

Chrysler has made a remarkable turnaround from two years ago, when it was rescued by the Government.

The company earned net income of $ 116 million in the first quarter and is forecast 2011 earnings of 200 million dollars to 500 million dollars. Under the leadership of CEO of Fiat, Sergio Marchionne, the company has cut costs and revive its sales of refurbishing most of its lineup of vehicles Chrysler, Jeep, Dodge and Ram.

Its sales rose 30 percent in June from the previous year.

Fiat has received a 20 percent stake in Chrysler after the failure in exchange of experience in management and technology. The Italian carmaker gradually raised its share and meet benchmarks established by the Government.

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