The final tally on the cost of the US auto industry bailout is in. With the recent sale of shares of Ally Financial, the Feds invested $79.69 billion to keep GM, Chrysler and their financing divisions afloat and recouped $70.43 billion – a net loss of $9.26 billion. However, in the government's official numbers it lost $16.56 billion because the smaller number factored in interest and dividend payments. The total was still far less red ink spilled than some estimates predicted.
Part of the deal for the federal bailouts of Chrysler and General Motors was that both organizations were required to trim their vast array of dealerships. This move did not sit well with the people that would be losing out on franchises, though, and in Chrysler's case, 148 of the shuttered dealers have fought for money they feel they are entitled to.
In the same week that Audi said "not so fast" to some claims from Tesla, Chrysler has responded to a new press release from the California-based EV-maker by saying "not exactly, Tesla." The statement, released through the Jeffrey N. Ross
The Detroit News reports that former Chrysler CEO Bob Nardelli believes that the Obama Administration didn't need to hand the automaker to Fiat in order for the company to continue on. Instead, Nardelli says that a private equity firm could have easily taken the reins and steered the company back toward success. As you may re
Chrysler has taken the final step towards freedom from Uncle Sam by paying off the rest of its government loans. USA Today reports that Chrysler and Fiat paid the Treasury Department $500 million for 98,461 shares and $60 million for shares from a pact with the United Auto Workers' VEBA retirement trust.
According to The Wall Street Journal, Chrysler's post-bailout restructuring allowed it to effectively erase any responsibility for car accident victims. Two years after the $12.5-billion auto industry bailouts, families like the one Vicki Denton left behind are stuck between a rock and a hard place.
It's Official: Chrysler has announced that it has repaid its multi-billion dollar obligations owed to both the United States and Canadian governments. Adding up both loans plus interest, Chrysler has just shelled out a tidy $7.6 billion. The U.S. receives $5.9 billion and Canada will get $1.7 billion.
The Congressional Oversight Panel charged with overseeing America's $700 billion federal bailout fund admits that it still isn't sure if the measure will save the auto industry in the long run, The Detroit News is reporting. As you'll recall, the $700 billion was divvied up between banks, insurers and General Motors and Chrysler, among others.
One year ago, the U.S. auto industry was at the weakest point in its history. To make matters worse for the both the industry and the Obama Administration, the majority of Americans wanted nothing to do with a bailout, having just undertaken an even pricier propping up of the country's lending institutions. But President Obama and the Auto Task Force made the difficult decision to push General Motors and Chris Shunk
Without the government bailout of General Motors and Chrysler, the U.S. auto industry would likely have two fewer domestic automakers and hundreds of thousands of high paying jobs would be history. The Detroit News reports that ex auto task force chief Steve Rattner
When U.S. Secretary of Transportation Ray LaHood opened the Detroit Auto Show last week and said that the Chevrolet Volt was, "obviously the kind of green car Americans are looking for," it was a slightly self-ser
President Obama has just concluded a televised press conference where he announced that Chrysler will indeed head into Chapter 11 bankruptcy proceedings almost immediately. As part of the same announcement, he noted that the Auburn Hills automaker has reached terms with Fiat and will be headed into a partnership agreement that will include a cash infusion and technology transfers. By some estimates, the restructuring is expected to take 30-to-60 days.
Is that 'B' as in bankruptcy or 'B' as in bailout? Probably 'B' as in both. Regardless of the buzzword you choose to slap on the respective situations General Motors and Chrysler find themselves in, it's not good, and Ford realizes this fact just as clearly as the rest of us. In response, the Blue Oval has embarked on a new plan to pick up as much market share as possible.
President Obama has just finished his press conference on the government's determination of the viability of General Motors and Chrysler, and the gist is that both automakers have failed to convince the feds that their business plans deserve further investment. Obama and his task force will give GM enough working capital to survive another 60 days and prove its viability, though no d
According to The Detroit News, the United Auto Workers is giving its blessings to a potential Chrysler-Fiat tie-up. Chrysler honcho Bob Nardelli earlier pegged the possible union as a $10 billion bonanza for Chrysler, since the Pentastar would save money on developing a range of platforms, engines, and cars. The UAW's interest is, of course, the job savings: the partnership has been said to be worth 5,000 jobs that might otherwise be lost.