Energy secretary backs Chrysler for U.S. loan

7/19/2011

ROMULUS, Mich. — The U.S. Energy Department considers the Chrysler Group LLC a “viable company” and is “working through” its low-interest loan application, Energy Secretary Steven Chu said Monday during a visit to an A123 Systems Inc. facility here.

Mr. Chu is overseeing the $25 billion Advanced Technology Vehicle Manufacturing program, created in 2007 to spur car makers and suppliers to produce more fuel-efficient vehicles. Funds from the program can be issued only to companies that are “financially viable.”

Sergio Marchionne, chief executive officer of both Chrysler and Italian automaker Fiat SpA, said in April that the U.S. automaker probably would be able to obtain as much as $3.5 billion in low-interest loans for development of fuel-efficient vehicles.