Business Autos

Taxpayers' loss on GM bailout looks to be about $10 billion

The U.S. Treasury’s deal to sell 30 million shares of General Motors Co. will recoup taxpayers another $1 billion of the bailout money the government put into the automaker back in 2009.

All told, taxpayers have recovered $32.5 billion of the $49.5 billion used to restructure the nation’s biggest automaker.  The government also still owns 189 million GM shares, worth about $6.5 billion at the $34.41 share price that the Treasury got for the batch of stock it sold this week.

If the Treasury is able to liquidate its remaining stock, as it plans to do over the next 15 months, at that price or above, the government will still be short about $10 billion on its GM investment.

However, Treasury officials say that the goal of the auto industry bailout was to save the industry and jobs rather than make a profit on the investment.

To date, the Troubled Asset Relief Program (TARP) that funded the bailout of GM and other companies has recouped over 95%, or $399.40 billion, of the $420 billion it disbursed, the Treasury Department said.

GM has been consistently profitable since it emerged from bankruptcy almost four years ago. Although it and other automakers are losing money in recessionary Europe, GM is gaining ground in its core U.S. market.

Through the first five months of this year, GM has sold almost 1.2 million vehicles in the U.S., an 8.3% gain from the same period a year earlier. The nation’s largest automaker also has brought its share of the U.S. market up to 18% from 17.8% during the same period a year earlier.

ALSO:

Toyota debuts snappy Corolla

Price cuts spur electric car demand

Pickup truck sales carrying auto industry

Follow me on Twitter (@LATimesJerry), Facebook and Google+.

Copyright © 2014, Los Angeles Times
Related Content
  • Classic cars race at Rolex Monterey Motorsports Reunion
    Classic cars race at Rolex Monterey Motorsports Reunion

    Races are just one element of the Rolex Monterey Motorsports Reunion, a three-day event that pits about 540 classic and vintage street and racing cars against one another. The cars are grouped into classes based on marque, engine size and era. Read more: Car collectors race pricey vintage...

  • The 10 worst cars sold in America
    The 10 worst cars sold in America

    The 2001 Pontiac Aztek, the 1987 Yugo, the 1958 Edsel Corsair -- here's one list of the top 10 worst cars. What do you think?

Comments
Loading