Report: U.S. bailout of the auto industry saved the government $28.6 billion

Article by Christian A., on November 19, 2010

Ahead of General Motors Co.’s initial public stock offering, the Center for Automotive Research (CAR) in Ann Arbor, Mich. said that the U.S. bailout of the auto industry saved the government $28.6 billion and is close to a “two-year breakeven.”

GM’s IPO aims to raise up to $22.7 billion, which would be divided among the U.S. and Canadian governments and a retiree health-care trust administered by the UAW. CAR explained that government aid for Chrysler and GM saved more than 1.14 million jobs in 2009 and another 314,400 jobs in 2010.

Its asserted taht the net impact to the federal government (in terms of personal income taxes, Social Security receipts, and changes in transfer payments) was US$21.6 billion in 2009 and $7.0 billion in 2010.

CAR’s study determines that the bailout saved the government $28.6 billion in, for instance, tax revenues it might have lost.

CAR’s chief economist Sean McAlinden says the $13.4 billion in principal has been repaid on the government’s $80 billion U.S. investment in the automotive industry. To get a “two-year breakeven”, the government needs to recover $38 billion of the remaining $66.6 billion outstanding investment in the industry. [via autonews - sub. required]

Topics: united states

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries