$30 billion is gone, but it could have been worse
This was a bad year for both the auto industry and the American taxpayer. The Obama administration’s effort to save General Motors and Chrysler will cost taxpayers $30 billion. The Detroit News reported last week that the losses were less than expected. Earlier forecasts projected a loss of $44 billion of the $82 billion loaned-out.
GM received $50 billion of the money, with $43 billion given in exchange for 61 percent of the company.
A large portion of the $30 billion loss is due to Chrysler. Chrysler has had much of its $12 billion debt forgiven. The government is requiring Fiat to pay back $6 billion in loans before it can increase its 20 percent stake in the company, said Detroit News.