Chrysler CEO Bob Nardelli said the loan "will allow the company to continue an orderly restructuring."
The government bailout of Chrysler has been criticized because the automaker is not publicly traded but is owned by the private-equity firm Cerberus Capital Management.
Both Chrysler and GM told Congress and the White House that they would run out of operating cash by the end of 2008 without emergency loans of some kind. When Congress declined to approve a bailout, the Bush Administration stepped in at the last minute and said Treasury would provide short-term loans from the Troubled Asset Relief Program.
Treasury also provided a $6 billion funding package for GMAC, the finance arm of GM that is jointly owned with Cerberus.
Inside Line says: Perhaps Congress would have felt more comfortable with Lee Iacocca back in the saddle at Chrysler. — Paul Lienert, Correspondent
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