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.
Regulators are set to vote Tuesday on the so-called Volcker rule, a piece of the 2010 Dodd-Frank financial reform law intended to stop banks from taking excessive risks with federally insured deposits. More
The first major global trade deal in nearly 20 years was struck in Bali Saturday as 160 countries agreed on measures that should speed up the flow of goods and could boost the world economy by as much as $1 trillion. More
You have to search the fine print on Tegu's toy block set to find any hint of the company's plan to make one of Central America's poorest cities a better place. More
As usual, Congress has left all the year's major fiscal decisions to the last minute. More