Kokomo Mayor Greg Goodnight is reacting to Chrysler‘s plans to repay its government loans years ahead of schedule. Goodnight believes the refinancing arrangement validates the Obama administration‘s controversial decision to bailout the industry about two years ago.
“I think if you go back a couple of years, everyone was concerned that this was too risky of a thing to do, and I don’t think even the most optimistic people envisioned that they would pay back the full loans this quickly,” Goodnight said. “This shows that what they needed was time to restructure and time to work on some new products, and that it was the right decision and a good investment for American taxpayers,” Goodnight said.
Not only is Chrysler paying back its loan, but they’re also paying taxes in cities like Kokomo said Goodnight. The refinancing arrangement, involving a $3 billion term loan, $3.2 billion in bonds and a $1.3 billion hand out by Italian automaker Fiat, is expected to be completed on May 24.