Chrysler withdraws $3-bn loan application

Chrysler yesterday, withdrew an application for a US government loan worth more than $3 billion for helping it make more fuel-efficient cars and trucks.

The automaker said in a statement it had confidence in its ability to adopt new technologies and make competitive products without new government assistance.

The company added, the decision would not impact Chrysler's ability to achieve its previously announced business plan targets.

Chrysler, which was bailed out by the government in 2009, is  now a unit of Italy's Fiat SpA. (See: Fiat becomes Chrysler's majority shareholder)

The company offered no comment on the status of its application for an UD Department of Energy (DoE) loan to upgrade US plants with technology needed to overhaul its truck-heavy lineup.

The loan had been pending for some time, over which the DoE had engaged in some tough negotiations as regards financing terms and other aspects. According to the agency, it was still considering the Chrysler application when the company pulled out.