• Feb 20, 2009
With all the rescue/bailout talk going on here at Autoblog and, oh, just about everywhere else, you may find that it's tough to keep up with it all. Thankfully, the scribes over at Detroit Free Press have consolidated the discussion down to one easy-to-read but tough-to-comprehend figure: $97.4 billion. That's the total you get when adding up the initial $25.4 billion that automakers were promised to help retool their plants to build more fuel efficient cars; the $25.5 billion that auto suppliers have banded together to seek from the Feds and the $39 billion in loans that General Motors and Chrysler have requested from the feds to stave off a worst case scenario.

Of that $97.4 billion, a total of $24.9 billion has already been paid out to General Motors, GMAC, Chrysler and Chrysler Financial. If the entire amount were paid out, every American would then have contributed $874 to the auto rescue/bailout.

[Source: Detroit Free Press]


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  • 49 Comments
      • 5 Years Ago
      I am hoping and yes,... praying that Ford doesn't have to dip into bailout money. I know they probably will, but it doesn't look good for Detroit now that Washington is involved. Oh well, it was good knowing you GM.
        • 5 Years Ago
        I think GM should wrap up their North American operations and focus entirely on Asia, Latin America, Australia and the Middle East where they are doing well and are respected. A decade or two later, they can re-enter the North American market. That way they can save the company now and have the warm, fuzzy "import" glow North American loves when they re-enter the market lol.
        • 5 Years Ago
        When Ford releases the Ecoboost for their pickups and SUVs, they will be in a completely different league from the rest of the truck market in terms of fuel efficiency and power.

        Even though the entire car market is looking bad, FoMoCo is still in a position to steal market share to cut their losses.
      • 5 Years Ago
      "$25.4 billion that automakers were promised to help retool their plants to build more fuel efficient cars"

      That's not a bailout! The government changed the CAFE rules arbitrarily and maliciously and agreed they wanted to stimulate "greener" cars.

      Christ, now you people will tell me that research grants are bailouts too.
      • 5 Years Ago
      Even I, a staunch supporter of everything USA am starting to get a little tired of this. I think that money would be better spent on our future.

      Roads
      Education
      High Speed Rail

      Etc

      We could give a fraction of that money to industries we lost like textile and shoe mfg, etc., and get them back up and running. Combine that with having truly fair trade and we could compete on a level field in the world market. I'm sick of us getting the rest of the world's crap dumped on us while our people stand in unemployment lines.

      I'm beginning to think bankruptcy is the better solution.

      Aargh.
      • 5 Years Ago
      I want my $874 back to contribute to my own personal bail out fund.
      • 5 Years Ago
      It's interesting that all the Ford fans say Ford hasn't asked for bailout money, but Ford's slice of the retooling bailout pie is larger than GMs.

      I do realize that Ford hasn't received any retooling money yet (none of them have). Does anyone know how the retooling bailout money division was determined?
      • 5 Years Ago
      I think the only safe job in America these days is the guy working for the company who prints money. I bet they are working 7X24 and will have to work like that for years to print all the money our Government is spending.
      • 5 Years Ago
      @Flashpoint:
      "The difference between high tech weapons and automobiles is that we can SELL AUTOMOBILES abroad."

      Wrong - there's one thing we make better than anyone else in the world right now, and that's weapon systems. Eventually, the F-22 will be made available for export, and the US gov will make billions. If it's a choice between Lockheed or GM, I pick Lockheed.
        • 5 Years Ago
        AMEN!!!!

        We've sold our weapons through-out history and they are usualy a step ahead of the rest. We arn't comparing M14's to AK47's, but ground to air missles, advanced lasrs, etc. Thats what this country is good at. Killing things,
      • 5 Years Ago
      $874 hunh? ehh... i would have probably just wasted it on hookers and blow anyway.
      • 5 Years Ago
      You should also include Republican pork. For example: the Iraq war is estimated to cost more than three trillion dollars:

      http://www.washingtonpost.com/wp-dyn/content/article/2008/03/07/AR2008030702846.html

      A war that moved from a balance of power between Iraq an Iran to a country which will fall under Iranian influence soon as we leave.
        • 5 Years Ago
        http://iraqforsale.org/

        I wish I could say that wars aren't pork. But war profiteering has existed for a long time, long before I was born. And Iraq is no exception, in fact, with the use of government contractors for everything (no longer do soldiers cook meals or clean latrines), the amount of government money handed out to contractors for the war is higher than ever. And much of this was given on no-bid contracts to buddies of those in the administration.

        One thing to remember is the more companies that are poised to make money off war and the more influence they have in our government, the more often we will go to war.
      • 5 Years Ago
      Interesting numbers. Given that the $874 is based on the total number of American households according the article, the burden to actual taxpayers (http://www.taxfoundation.org/research/show/1410.html) is probably well over $1300. Nice.
        • 5 Years Ago
        They may as well just bill everyone $1300 now, and get it over with.
        • 5 Years Ago
        In the interest of keeping facts, facts rather than slanted statistics, there's a problem with the math here. And no matter how you slice it, our (all Americans) contribution to the bailout is stupidly large. So I hate to quibble with the number, but there's a decent error in here somewhere, regardless of whether its based on "every American" or on the number of households.
        Census says there are about 300,000,000 citizens. My math makes that about $323 per person...which for my taste is about $322 too much.
        But it's about a 1/3 of what was reported above.
      • 5 Years Ago
      I was saying this for months (years). Lets see everyone get behind this coproate welfare giveaway now...
      • 5 Years Ago
      The most infuriating thing in all of this is that the person who is punished the most is the responsible taxpayer--the person who didn't jump on the "zomg I must have a house for any price!" bandwagon, the person who didn't drown themselves in mortgage debt, living paycheck to paycheck hoping their variable-interest rate would never spike up.

      Why should I spend my hard-earned dollars propping up people and companies who irresponsibly blew it?

      Someone else mentioned Iraq war being pork, well Republicans supporting pork doesn't justify Democrats putting in new pork, ESPECIALLY since their whole selling point in the election was that they wouldn't cater to lobbyists, special interest groups, yada yada yada.
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