Skip to comments.Report: Auto Industry Bailout Could Cost $3.4 Billion More Than Last Estimate
Posted on 08/14/2012 8:38:01 PM PDT by Roos_Girl
The U.S. Treasury Departments estimated cost to taxpayers of the 2009 auto industry bailout has just taken a $3.4 billion jump. While the $21.7 billion estimate at the end of May was lower than the earlier $23.8 billion figure, now the treasury department told congress it expects to lose $25.1 billion up $3.4 billion in just a few months, Detroit Free Press reports.
The new figure is connected to General Motors falling stock price, which some have suggested is being affected by the performance of the Opel and Vauxhall brands. GM stock fell 15 percent between the end of February and the end of May to $22.20 while it closed Monday at $20.49. If GMs stock goes up in the next couple months, expect the next loss estimate to go down again.
In 2009, the federal government provided GM, Chrysler, and Ally Financial (GMs former finance company) about $80 billion to bail out the struggling companies, to avoid bankruptcy. To date, the treasury department has recouped $37 billion.
Last year, Fiat bought Chryslers remaining shares from the U.S. and Canadian governments, paying off all but $1.3 billion of the debt of Old Chrysler. GM has repaid about $24 billion through share sales and loan repayment, but the U.S. government still owns about 500 million GM shares. For the government to recoup the remaining $27 billion, GM stock would have to increase to $53 per share. Ally has repaid $5.5 billion of the $17.2 billion it received, though the government still owns 74 percent of the finance company.
Obama has changed the cars they are producing and now building cars nobody wants
Goverment Motors is one dog Barry forced US to eat.
Apparently the GOP-e are in the same ‘boat’ as Obama. No wonder these tax and spend politicians despise the remembrance of the first TeaParty.... NO mandates/taxation without representation.
No.. I am afraid that is not dog he forced us to eat...
It was dog droppings.. And he did not even place it on a piece of bread.
GM continues to spiral downwards because a lot of folks like me simply will not even consider a "government motors" car. Add to that their problems with styling (Camaro being the exception), quality, reliability...
7 out of 19 GM cars made in China - scroll down for video
and they call Romney and outsourcer...
Ford refused bailout $ - and they doing great...
hmmm - gov’t run business or private capitalism?
Isn’t it a little extreme to boycott the entire company when you can still buy or lease an SUV, pickup or luxury sedan with a gasoline-fueled V8 or V6 internal combustion engine? Lots of GM dealerships aren’t necessarily in with the Obama administration. Let’s not throw the baby out with the bathwater, shall we?
Perhaps the dealership ought to consider selling a different brand - one that hasn’t taken a bailout from the government. No GM dealer will ever get my business.
Your proud stance is admirable. However, taking a fall in the dark might come as a surprise.
Read the book "American Icon" about their turn-around, it is more multi-faceted than that.
But the biggest thing Alan Mulally may have done that goes un-noticed? He changed the Culture A good leader usually does and it takes about 3 years. GM? They haven't had a consistent CEO at the helm long enough to have a "vision" a way forward to champion or promote and something for the troops to believe in. I have a gnome who has a gnome w/in GM, the word I get is ya things changed for a year or so but the old habits are back, not good....