US government expects to lose $30 billion on car industry bailouts
By Andrew C., 30 Aug, 2010. 0 Comments
For bailing out the US car industry, the government expects to lose $30 billionof its $82 billion. This is quite an improvement on initial estimates, which suggested it would lose $44bn. President Barack Obama said that steps are being taken to prevent the rapid dissolution of the US car industry, which is being threatened by the crisis.
President Obama explains that there are popular decisions but that there are also meetings that are necessary. GM received $50 billion in loans, the large majority of which the government swapped for stock in the company. The company is now set to start repaying the loan from Dec. 31. Moreover, Chrysler received $12 billion in government loans, of which Fiat - which now owns 20 percent of the company - must pay back half before it is allowed to take a majority stake. Car finance company GMAC also received $13.5 billion.
[via autocar]
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