Despite remaining committed to producing fuel efficient vehicles at competitive prices, Chrysler has withdrawn its application for an Advanced Technology Vehicles Manufacturing loan from the US Department of Energy.
Issuing a statement about the decision, US Representative John D Dingell commented that he was disappointed an agreement could not be reached. He highlighted that Chrysler has enjoyed a successful upturn in fortunes – posting a 44 per cent increase in sales in January 2012 alone – but that the DOE must act decisively in future to fulfil the goal of out competing the rest of the world.
Chrysler’s original request was for $8.55billion back in 2008. Since then the amount of the possible loan only shrank, while the terms and conditions grew more restrictive.
Since reforming in June 2009 as Chrysler Group LLC, the company has announced investments of more than $4.5billion and added 9,400 jobs; while repaying both US Treasury and Canadian government loans in full, with interest, six years early.
The company is said to be confident it can bring the technologies to market and that withdrawing its loan application will not impact its targets.
