Chrysler's financial services department has paid off a $1.9 billion (£1.3bn) loan to the US Treasury Department.
The loan was originally made in January 2009 for $4bn (£2.8bn), but was defaulted on when Chrysler filed for bankruptcy.
The US Treasury says that it has received $3.9bn (£2.7bn) from Chrysler, having lent it $14.3bn (£9.9bn).
"This repayment, while less than face value, is significantly more than the Treasury expected to recover on this loan, and is greater than an independent valuation of the loan ..." said a Treasury statement.
Chrysler officials have stated that they expect to post an operating profit of between zero and $200m (£139m) this year.