Chrysler Calls Out Telsa On DOE Repayment

Electric vehicle start-up Tesla Motors Inc. sparked a war of words with Chrysler Group LLC on Wednesday after Tesla said it was the "only American car company to have fully repaid the government."

The maker of the plug-in Model S sedan became the first recipient of a U.S. Energy Department vehicle loan to pay off its debt of $451.8 million — nine years ahead of schedule, the Palo Alto, Calif.-based company said Wednesday in a U.S. regulatory filing.

But Chrysler cried foul and issued a playful retort.

"The information is unmistakably incorrect," wrote Chrysler spokesman Gualberto Ranieri on a company blog. "Question: short memory or short circuit?

"It's pretty well known that almost exactly two years ago — May 24, 2011 — Chrysler Group LLC repaid (in full and with interest) U.S. and Canadian government loans more than six years ahead of schedule."


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ghosthunter - 5/23/2013 1:12:53 PM

+2 Boost

if my memory serves me right, Chrysler basically borrow a bunch of new tax payer's money to pay back the old debt.
that's like i use my Bank of America's Visa card to payback Bank of American's Master card... yes the Master card is cleared, but i still owe bank of America the same amount of money + fees.

now, if they were able to secure a private investment and pay back the gov's loan, that would be a different story.

bfghemicuda - 5/24/2013 11:56:33 AM

+1 Boost

Actually gosthunter Chrysler secured a new lower interest loan from a private bank. It can be argued that the banks were bailed out and owned by the taxpayers but legally if Chrysler was to default on the loan it's the banks problem.

Satriani1 - 5/23/2013 1:13:05 PM

+3 Boost

Tesla is famous for making questionable claims to generate publicity for the company and its products -- and most importantly its inflating stock price which is trading about three times the level it was just two months ago.

Car and Driver Mag: Why The Great Elon Musk Needs a Muzzle
http://www.caranddriver.com/columns/aaron-robinson-why-the-great-elon-musk-needs-a-muzzle-column

Satriani1 - 5/24/2013 12:53:16 PM

+1 Boost

Tesla lost its lawsuit against Fisker.
In 2008, Tesla Motors filed a lawsuit against Fisker Automotive, alleging they stole Tesla's technology and are using it to develop their own hybrid car, the Fisker Karma. Tesla's suit claims that the design work done for the Model S by Fisker Coachbuild was substandard, and that Fisker diverted its best ideas to the Karma.

Tesla lost their lawsuit: in early 2009 the suit was settled in Fisker's favor and Tesla was ordered to pay Fisker more than US$1.1 million in legal fees.
http://en.wikipedia.org/wiki/Fisker_Automotive#Legal_dispute_with_Tesla_Motors