The money that the U.S. government lost on their GM bailout just keeps escalating. In December it was estimated by the Treasury Department that the government had lost $10.3 billion, a number which has now jumped by nearly a billion. Following a March write-off in excess of $800 million, the government released a report Wednesday announcing that the money lost now sits at $11.2 billion.
It’s just another step in the grim ending of the government’s aid to America’s long-standing-but-flailing automaker. It took roughly $50 billion to bail out GM in the first place (following their 2009 bankruptcy), and much of that money was shortly converted to 61% equity stake. The treasury sold its remaining shares in the automaker last December, which led to the release of the $10.3 billion figure.
Of course, it’s not all bad. Despite the government taking an enormous hit on GM (and Chrysler, for that matter), the bailout saved roughly 1.5 million jobs, and sparked Detroit; despite GM’s recent $1.3 billion recall, they just posted their 17th consecutive profitable quarter.
Time will tell how history views America’s bailout of its own automotive powerhouse. It is certainly not devoid of positives, but $11.2 billion sure is a large chunk of change to swallow…
Photo Credit: General Motors