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.
- Brandon Turkus
- Apr 14, 2014
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.
- Jeffrey N. Ross
- May 23, 2013
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 company's blog, comes in response to Tesla claiming it was "the only American car company to have fully repaid the government." Chrysler notes that it, too, recently paid back Uncle Sam from its 2008 bailout. Similar to Audi's recent press release, which was eventually and myst
- Zach Bowman
- Oct 3, 2011
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 recall, Nardelli left Chrysler in 2009 after the private equity firm Cerberus was forced to loosen its grip on the company. We don't need to elaborate on how well that whole e
- Chris Shunk
- Jul 22, 2011
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.
- Aaron Richardson
- May 27, 2011
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.
- Jeff Glucker
- May 24, 2011
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.
- Aaron Richardson
- Mar 17, 2011
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.
- Chris Shunk
- Apr 23, 2010
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 Chrysler through bankruptcy while providing $50 billion in loans to keep the doors open at t
- Chris Shunk
- Mar 11, 2010
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 recently told an audience at a bankruptcy conference that the state of Michigan and the city of Detroit would have faced municipal bankruptcy if Chrysler and GM were liquidated.
- Sebastian Blanco
- Jan 18, 2010
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-serving statement. After all, the government that LaHood works for owns a large share of General Motors (and Chrysler). Even though Ford didn't take a bailout from the government, Newsweek wanted to know just who's in charge of the Big Three these days. Their assessment? It's not anyone in
- Frank Filipponio
- Apr 30, 2009
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.
- Jeremy Korzeniewski
- Apr 17, 2009
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.
- John Neff
- Mar 30, 2009
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 dollar amount was given. Chrysler, meanwhile, is being given another 30 days and working capital up to $6 billion t
- Jonathon Ramsey
- Mar 20, 2009
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.
- Jonathon Ramsey
- Feb 25, 2009
It's the General Motors and Chrysler merger saga, take three. A few months ago, GM said "No can do" to the union, taking off its ring and walking out of church. Now GM's bondholders may be contemplating a shotgun wedding, forcing The General back to the altar over the debt-equity swap the automaker needs to conclude to have a chance at more government financing.
- Dan Roth
- Feb 20, 2009
Just as Chrysler tries to hammer out a cash deal with Ottawa and Ontario for at least a billion dollars, the automaker's Canadian branch has been hit with a half-billion dollar tax reassessment. The Canada Revenue Agency has been trying to collect tax payments from Chrysler for years, after the agency adjusted the amount Chrysler owes on parts and vehicles that were shipped across the border. Canada Revenue wants $500 million to pay off abuses from "transfer pricing," which is a bit of voodoo be
- Jeremy Korzeniewski
- Feb 17, 2009
Click above for a high-res gallery of the Dodge Circuit EV
- Sam Abuelsamid
- Jan 3, 2009
Two days after General Motors got its first installment of cash from the Treasury Department, Chrysler also closed on its loan. On Friday, Chrysler received a transfer of $4 billion to help tide it over while management tries to find a way to right the ship. CEO Bob Nardelli acknowledged the complex arrangements that had to be made with privately owned Chrysler. It's not known at this point exactly what arrangements were made as far as collateral and what the government would get from Cerberus i
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