Chrysler Group is still struggling to return to profitability after last year's government-backed bankruptcy. On Tuesday, however, the automaker -- along with rivals Ford Motor (F) and General Motors -- got a big financial boost in the form of tax breaks from state economic development officials in Michigan.

During the next 20 years, Chrysler will receive tax credits worth more than $1.3 billion to upgrade plants in the state. Among its plans, the Auburn Hills automaker will spend $150 million to expand capacity to build a Fiat-designed four-cylinder engine at its Dundee engine plant.

In addition to state aid -- and the billions of dollars already loaned it by U.S. taxpayers in the form of last year's bailout -- Chrysler may soon get approval for billions more in loans. The company, which is 10% owned by Treasury and run by Italy's Fiat, has applied for about $10 billion in loans from the Department of Energy, Reuters reported, citing unnamed sources for the information.

It isn't clear how much credit will be granted, but the financing would help Chrysler boost cash flow and accelerate payment of some $7 billion in pricey government loans it received as part of its bankruptcy. The loans are expensive because Treasury is the lender of last resort.

According to its August financial update, Chrysler is paying interest rates of 7.2% to 14.3% on the $5.7 billion it still owes Treasury. The cost of servicing the debt was a key reason why Chrysler reported a net loss in its second quarter, Reuters noted.

Chrysler declined to discuss any time frame for approving its bid with the Energy Department.

"Our application covers a wide variety of technologies including electric vehicles, (gasoline/electric) hybrids and advanced gasoline engine technology," a Chrysler spokeswoman told Reuters.

The agency may approve all or part of the request by Chrysler, but it isn't the only company seeking the funds. Loans have already been made to other companies and pending loan requests from carmakers and suppliers exceed the estimated $17 billion in available funds, Reuters said.

Still, it's likely Chrysler would receive approval ahead of GM, which is pursuing an initial public offering targeted for mid-November. If GM were to accept a government award now, it would only complicate the IPO.

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rbobnavarre

I did not see you mention any of the other companies that are receiving money whats the problem how about writing about them it might even be some of the companies that some of the people that are writing this crap leave the auto makers alone and you people need to get a life

October 29 2010 at 4:18 AM Report abuse rate up rate down Reply
lagoodfella

I was in the auto parts business most of my life I stopped buyng american cars in 1984 I just saw all the just they were making I started to buy imports.

October 29 2010 at 2:58 AM Report abuse rate up rate down Reply
2 replies to lagoodfella's comment
Jeff

what?

October 29 2010 at 3:41 AM Report abuse rate up rate down Reply
hchevy

Yeah, that makes sence.

October 29 2010 at 5:12 AM Report abuse rate up rate down Reply
atomicdonuts182

I have an idea, instead of giving more money to these auotmakers bastards who, lets be honest, don't need it, why don't the government give it to us, the people. I think in all reality if the people got all that bail out money our economy would fix itself, instead all the automakers and banks got the money, then half of them went bankrupt anyway, wtf! I think I voted for the wrong man, all the BS he spun, now were in more debt and more money is going to automakers? They're still using fossil fuels, they're pumping out more cars that people cant afford only to sit there and gain dust. Why give more money to companies making products people can't afford? I mean seriously it's not rocket science, wtf is going on, why are all these companies getting money and here we are barely able to feed our families? How about you give us money Obama, and im not talking about a measly 300$, that's effing chump change, give us the big bucks like you're giving these meaningless automakers and banks, we will use it more wisely than they ever have, seriously. I believed in Obama at first, but now I just see he's another thorn in my butthole, I will NOT be voting for you again, you're making me ashamed to be an American. And considering my father did 2 tours in Vietnam, and now my brother is in Afghanistan, it only makes it worse and I'm beginning to hate everything you stand for, cause it shows me all that they have done and are working for is being undone by you're ridiculous decisions. More bailout money? Are you effing kidding me? Pathetic.

October 29 2010 at 1:46 AM Report abuse +1 rate up rate down Reply
1 reply to atomicdonuts182's comment
Jeff

I would rather see bail out money for a true business as the auto industry where real jobs exist. I want the money back as you said, these dead end wars that are not worth cost. Then all the foreign aid. (still giving to china)

October 29 2010 at 3:45 AM Report abuse rate up rate down Reply
KIM BRIGGS

Stop these bailouts.. I tired of supporting U.S. automakers for their failure to provide a quality product at a reasonable price. Like my 2007 Cadillac Escalade, I quickly realized I had purchased a remake of the Yugo of yester years and discovered the craftsmanship was actually inferior to the Yugo. May GM die a quick death and the rest of the failing U.S. automakers follow suit without my children having to pay for their greed many years down the road.

October 29 2010 at 12:46 AM Report abuse -3 rate up rate down Reply
Master Chief

We don't need to bailout the auto industry, the government just needs to stop raping them allowing foreign car makers to make and sell their crap here for cheap. How is a car maker going to compete if the market is flooded with cheap Asian crap? And do you know why their crap is cheaper to make and sell? They don't have unions ******* them dry... Also, you people who buy imports are responsible for this mess. The US used to make cars that were the envy of the world, until you all decided to throw quality under the bus for a little wussy Datsun.

October 29 2010 at 12:28 AM Report abuse -1 rate up rate down Reply
2 replies to Master Chief's comment
hchevy

They do have unions in Japan and Germany, they just don't allow them here. Shows what they think of us doesn't it?

October 29 2010 at 5:18 AM Report abuse rate up rate down Reply
pruettee

Master Chief, you must live in another world. In the 40s Crysler cars were crap. Today they are the same. Why bail thiem out. I did not like the bail out of GM either. I don't know where you travled as a Master Chief, but you should know there are unions in the other coutries. Ford finally came around and is building a better car. I notice no one mentions that Ford did not get any bailout money. They have cash on hand. When I was in the Netherlands, I had a Ford. When I was in Germany, I had an Opal. I drove Chevy and Ford in the US for years. I now have had two Toyotas. I may buy another Ford, but not Chevy and certainly not Chrysler. Chrysler has been garbage since I can remember from back in the 40s. Get a life Chief. Oh yes, you don't outrank me.

October 29 2010 at 9:18 AM Report abuse rate up rate down Reply
I LUV U SUNSHINE

The sad thing is is that, the vehicles are not made here, if they are the parts are not. remember what ford used to stand for? Found On Road Dead or Fix Or Repair Daily, and it was supposed to be american made, well guess what it never was. We as American wanted cheap, and now we are the ones to blame.

October 28 2010 at 11:04 PM Report abuse -1 rate up rate down Reply
Darren Berry

huh? suprised that the fact that the uaw needs more money. fiat may own chrysler but 75% of chrysler is owned by the uaw. agree-shut them down get the money from the people that run the company and put the money back where it belongs. unless the fact that the workers need another bail-out because of their apparent problem with drugs and alchol. maybe they should ask for money from the drug dealers that supply the plants for help instead of the federal government.

October 28 2010 at 11:01 PM Report abuse +3 rate up rate down Reply
joanimal

American auto manufacturers produce "corporate-welfare cars" - it's a scheme. They can't run a company and make a profit like other capitalist businesses because they are dumb businessmen making lousy cars yet their failures are rewarded with forced handouts from their customers and non-customers aka taxpayers. Why would anybody feel safe in anything built by these losers? They are not smart about running a business, they don't care about the environment or the energy crises (gas-guzzling SUV's) - they killed the electric car decades ago at the last gas crises (dumb again) so they'll play catch up to better managed companies at our expense. Politicians are afraid to let them fail on their watch because of the loss of jobs so we prop them up with bailouts so they can continue to make donations to politicians. If you buy one of their welfare cars, you are continuing the cycle of taxpayer-supported failure. Instead, buy from smarter, better run companies who can build better cars and make a profit - that's how capitalism works for everybody. Let the banks take the risk and bail these companies out - they've got the 0% interest rates from the feds to do it.

October 28 2010 at 9:32 PM Report abuse rate up rate down Reply
1 reply to joanimal's comment
wheelz1956

and what business are you in joanimal?

October 28 2010 at 9:55 PM Report abuse +2 rate up rate down Reply
jgriz2000

bull; no more money for these mfs

October 28 2010 at 9:31 PM Report abuse +8 rate up rate down Reply
1 reply to jgriz2000's comment
Rob

I say we the people should all miss manage our money and over spend our income, then ask for a bailout too. What a crock!

October 29 2010 at 2:12 AM Report abuse +1 rate up rate down Reply
calgonman4u

LOL I love it, It was the consumers who got tired of driving great well made union GM, Ford and chrysler cars. I much prefered to drive great american cars and the travels to shops for repairs and money spent. I hated to drive trouble free 200-300000 mile jap cars that were not union made and lasted 2-3 times as long as the great union cars. LOL Last I heard, fiat was an I talian company. The other union made Harley's are all that..LOL Get a grip, Junk....LOL Just like all union made stuff. I , yes me personally, have known union workers who go to work, drunk, smoking weed and has anyone known any fired..LOL I havent. Cant fire them, the union wont let ya....I buy what every product I feel is best for the money. If it cost 100 for a union made widget and 75 for a better foriegn made widget, Then I will buy the foreign made one. Give federal aid to car companies, give it to foreign companies to build junk, give money to 3 rd world countries and let them rebuil in hurricane or typhoon alley. Give money to countries that are over populated so they can have more kids since they have money to pay for it. Anyone wonder why china aborts female embroys to control population. I guess for the same reason India does. mmmmm U are productive you eat, you are not productive, then I guess the unions and govt. will take care of you. Its coming to a end. I cant wait for the muslims and shaira law to take effect. I am a man..LOL Lets see how the unions protest to them..Unions have ruined the country and world from the looks of the over seas rioting. Just sayin.. :)

October 28 2010 at 8:55 PM Report abuse +4 rate up rate down Reply