Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Index Last Change % Change
Dow 17,813.39 1.20 0.01%
Nasdaq 5,116.14 13.33 0.26%
S&P 500 2,088.87 -0.27 -0.01%
Treasuries 2.23 -0.01 -0.49%
Data as of 7:43pm ET
Company Price Change % Change
Pfizer Inc 32.87 0.90 2.82%
HP Inc 12.64 -2.00 -13.66%
General Electric Co 30.36 -0.30 -0.98%
Bank of America Corp... 17.44 -0.03 -0.17%
Freeport-McMoRan Inc... 8.10 -0.20 -2.41%
Data as of 4:02pm ET


Brazilian police arrested a prominent senator and billionaire CEO for interfering in the investigation of Petrobras, which has pushed Brazil into recession. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Some of the coolest toys this year are from small businesses. Here are 10 hot toys that just might be a smash hit this holiday season. More

American consumers saved more in October compared to a year ago -- a sign of a behavioral shift in consumer spending. More