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24 November 2017 14:55 (South Africa)

US government unlikely to recoup investment in GM, Chrysler

pt summary 4th nov 2009

The US Government Accountability Office (GAO) has concluded the government (read: taxpayers) is unlikely to recover its $80 billion bailout investment in General Motors and Chrysler. The GAO report says GM and Chrysler won't be valuable enough for the Treasury to break even on its investment in the two auto companies. The GAO also says, despite earlier statements the Obama administration would adopt a hands-off approach to the automakers' daily operations, it was following the finances of the two companies like the proverbial hawk and has added production requirements. For the government to get its money back, the automakers would have to reach stock valuations they hadn’t even achieved when they were healthier. Read more: AP

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