US government in bailout loan to car maker

The US Treasury Department said tonight it will provide a $1.5bn loan to Chrysler LLC’s financing arm to be used for new vehicle loans in hopes of boosting sales and ultimately returning the car maker to profitability.

The Treasury said the new aid will be in addition to the $17.4bn in loans earmarked for both Chrysler and General Motors last month in an effort to buy time for the two companies to reorganise.