Tags: auto | bailout | cost | billions

Treasury: US Will Lose $25 B in Auto Bailout

Monday, 13 Aug 2012 04:30 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The U.S. Treasury Department has said the auto industry bailout will cost taxpayers $3.4 billion more than previously thought.

Treasury now estimates the 2009 bailout will eventually cost the government $25.1 billion, according to a report sent to Congress on Friday.

That is up from the last quarterly estimate of $21.7 billion.

Since the $80 billion bailout of the auto industry, Detroit's big automakers have moved from crisis to profit. GM and Chrysler were put through government-funded bankruptcies that slashed costs and debt.

Treasury has so far recouped about half of what was extended in grants and loans to GM and Chrysler, related retail financing arms and suppliers. Some of the money was repaid in cash, while the remaining interest was tied up in equity shares held by the government.

Republicans have long complained that the bailout was at least partly aimed at salvaging union jobs in Michigan and Ohio, which were hit hard by the 2007-09 recession.

President Barack Obama has campaigned heavily in those states on a signature economic policy achievement - the revival of U.S. auto manufacturing due to his intervention following its near-collapse soon after he took office.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Kaiser: 89% of Uninsured Don't Know to Sign Up for Obamacare

Tuesday, 21 Oct 2014 14:03 PM

Obamacare administrators are promising a better sign-up experience for the plan's second annual enrollment period that o . . .

Pew: Liberals More Likely to Block Someone Over Politics

Tuesday, 21 Oct 2014 13:53 PM

Liberals are more likely to block or defriend someone on Facebook than Republicans over political differences, a new sur . . .

Ebola Vaccines Carry Downsides as Makers Rush to Trials

Tuesday, 21 Oct 2014 13:41 PM

Each of the Ebola vaccines being lined up for testing carries potential downsides, researchers say, ranging from efficac . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved