US taxpayers lost $11.2 billion in General Motors bailout

Article by Christian A., on May 2, 2014

The loss incurred of the United States government on its bailout of General Motors Co. has reached $11.2 billion,which is considerably more than the $10.3 billion estimate given by the Treasury Department when it sold its remaining shares in December 2013, according to a recently released quarterly government report. The $11.2 billion figure entails a write-off in March of the remaining $826 million investment in "old" GM.

The US government invested around $50 billion to rescue GM from bankruptcy, resulting to 61-percent equity holdings in the carmaker, plus preferred shares and a loan. The Treasury little by little sold its stakes in GM, with the last of them sold on December 9, 2013.

By then, Treasury pegged the government’s total loss at $10.3 billion, but said it is not expecting any significant proceeds from its $826 million investment in "old" GM, according to the report by the Office of the Special Inspector General for the Troubled Asset Relief Program.

Treasury Department spokesman Adam Hodge said reiterated that the goal of the GM investment was never to make a profit, but to help save the American auto industry, noting that it was a successful effort.

The US government’s rescue of GM and Chrysler Group, which was granted with around $12.5 billion, managed to save 1.5 million jobs in the US, according to the Center for Automotive Research.

GM logged its 17th straight profitable quarter, but its earnings suffered from a $1.3-billion charge for the costs of different recalls. The Justice Department, National Highway Traffic Safety Administration and the US Congress are probing GM over its failure to detect the faulty ignition switch for over a decade.

Topics: gm

If you liked the article, share on:

Comments

Recommended

For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 2017
As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 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