Chrysler CEO: We'll pay you back

By Chris Isidore and Peter Valdes-Dapena, senior writers


DETROIT (CNNMoney.com) -- Chrysler CEO Sergio Marchionne said on Tuesday that the federal government will get its money back -- and may even turn a profit -- from its rescue of the Automaker.

Marchionne's comments at the Detroit Auto Show come a day after GM CEO Ed Whitacre promised that the U.S. taxpayer would profit from the $50 billion bailout of his company.

For the government to make money on its 10% stake in Chrysler, the automaker would have to become a publicly traded company, something Marchionne said could happen in 2011.

Rival General Motors, which went through bankruptcy just after Chrysler has said it could be ready to sell shares in the second half of this year.

Marchionne's prediction of a taxpayer profit was less adamant than GM's promise made Monday. He cautioned that, "There's going to be a limited opportunity to do that here at Chrysler." But he emphasized his pledge that Chrysler will repay its $7 billion Treasury loan, with interest.

GM has already started early repayment of its loans and will complete the payments by June, Marchionne did not say when Chrysler would begin repaying its debt.

Most of the money provided to Chrysler was in the form of loans. The rest was turned into a minority equity stake. Chrysler would have to be worth more than $60 billion for the government to make a profit. By comparison. Ford Motor Co., which made $1 billion in the third quarter of 2009 and has seen its stock rise about 360%, is worth only $38 billion. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,191.37 -195.84 -1.13%
Nasdaq 4,637.99 -43.50 -0.93%
S&P 500 2,002.16 -27.39 -1.35%
Treasuries 1.72 -0.10 -5.53%
Data as of 1:13am ET
Company Price Change % Change
Apple Inc 115.31 6.17 5.65%
Bank of America Corp... 15.20 -0.43 -2.75%
Yahoo! Inc 46.46 -1.53 -3.19%
Microsoft Corp 41.19 -1.47 -3.45%
Facebook Inc 76.24 0.46 0.61%
Data as of Jan 28

Sections

One of the in-flight catalog's vendors wants to buy the company's assets and reinvent it for the Internet age. More

Drone-maker DJI is planning a software update to prevent its drones from flying in downtown D.C. More

On demand delivery startup WunWun is expecting its order volume to double by the time they close up shop on Monday. All thanks to a blizzard. More

401(k) balances reached a record high last year, thanks to a soaring stock market and larger contributions from workers participating in the savings plans, according to Fidelity. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.