Chrysler Group LLC on Thursday announced that it plans to repay its 7.4 billion U.S. dollars of loans to the U.S. and Canadian governments by the end of June.

Chrysler said in a statement that it plans to repay its government loans with proceeds from new term loan and newly issued debt securities, which will be sold to institutional investors in a private offering, as well as the funds that it will receive from Fiat.

Italian automaker Fiat announced earlier that it plans to buy a 16 percent stake in Chrysler for 1.27 billion dollars.

Chrysler said that the completion of the term loans, debt offering and the equity investment by Fiat would occur concurrently.

"Chrysler has come a long way in a short time," said Edmunds. com's senior analyst Michelle Krebs in an e-mail to Xinhua, "Many thought the brand wouldn't survive, but now it is gaining momentum with new models. The Chrysler 200 was the hit of the Super Bowl and gives Chrysler an entry to weather the current storm of high gas prices."

The automaker's senior executives will head out on a road show, primarily in North America, to visit potential investors and it will file a prospectus for an initial public offering at a later time.

Chrysler filed for bankruptcy protection in 2009's April amid financial crisis and formed an alliance with Fiat for survival.

VietNamNet/Xinhuanet