DETROIT (AP) — Chrysler is withdrawing its application for $3.5 billion in government loans that it planned to use to develop fuel-efficient vehicles.
A company spokesman says the loan terms from the Department of Energy were too restrictive. Chrysler Group LLC says the move won't affect its business plans or ability to develop competitive, fuel-efficient cars and trucks.
CEO Sergio Marchionne has been frustrated with the length of the loan process.
Ford Motor Co. won approval of a $5.9 billion loan in June of 2009. Nissan Motor Co. and Tesla Motors Inc. also got loans from the $25 billion program. General Motors Co. withdrew its application for $14.4 billion last year, saying it no longer needs the money.
An Energy Department spokesman says the agency is happy Chrysler can reach its goals without the loan.