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.

If you liked the article, share on:

Topics: gm

Comments

Recommended

Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
As soon as Toyota trademarked the names “LC F” and “Lexus LC F” at the European Union Intellectual Property Office, speculations have emerged that there could actually be a hardcore...
by - December 14, 2017
Mercedes-Benz has a completely new infotainment system that will make its debut as early as 2018. Details are scarce so far, but Mercedes is expected fill in the needed information...
by - December 14, 2017
Just a couple of days ago, BMW published an image of their long term plan for the next couple of years, and this includes electrifying most of their cars. We...
by - December 13, 2017
McLaren’s special department, the McLaren Special Operations (MSO) team, has created a unique colour that is a tribute to the home of the automaker’s founder, Bruce McLaren, in Surrey, England....
by - December 13, 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