GM bailout cost taxpayers $10.5 billion
The GM bailout is over, the US Treasury, which started off with 500 million GM shares of common stock in 2010, sold of the remaining 31.1 million, leaving the taxpayer with a deficit of $10.5 billion.
According to the US Treasury, $49.5 billion were spent on the GM bailout, and US taxpayers got $39 billion back.
The US government says the GM bailout saved over 1.2 million jobs.
GM bailout more than $49.5 billion
Bailout money was, in fact higher than $49.5 billion, if one includes an additional $1.5 billion funneled into programs to prevent GM’s suppliers from going bust, making sure vehicle warranties were covered, and funds put into Ally (the old GMAC finance company).
Although that extra money was not given directly to General Motors, it was spent on behalf of the company.
US Treasury Secretary Jacob J. Lew, said:
“The President’s leadership in responding to the financial crisis helped stabilize the auto industry, and prevent another Great Depression. With the final sale of GM stock, this important chapter in our nation’s history is now closed. The President understood that inaction could have cost the broader economy more than one million jobs, billions in lost personal savings, and significantly reduced economic production.
As a result of his efforts, which built on those of the previous Administration, more than 370,000 new auto jobs have been created, and all three U.S. automakers are profitable, competitive, and growing.”
According to the US Treasury, $432.7 million on all TARP (Trouble Asset Relief Program) investments have been recovered so far, including the sale of shares in AIG, “compared to $421 billion disbursed. Treasury will continue to wind down the remaining investments in a manner that balances maximizing the taxpayer’s return on investments with the speed of our exit.”
Mary Barra, GM’s new CEO
Mary Barra, 51 an engineer who started off in 1980 at GM’s factory floor as a co-op student from Kettering University, has been named the company’s new chief executive officer. Barra is the first woman to become CEO in the history of the automotive industry worldwide.
Barra is currently in charge of product development and quality for all cars and trucks
Dan Akerson, who has been GM’s CEO since taking over from Edward Whitacre in September, 2010, announced that his wife has been diagnosed with advanced cancer.
Chief financial officer, Dan Ammann becomes president of the company. Tim Solso, former CEO and chairman of Cummins Inc., takes over from Akerson as chairman on January 15th, 2014.
In September this year, Mary Barra was recognized by Forbes Magazine as the 41st most powerful woman in the world.
Barra is a second-generation General Motors employee. Her father, Ray Makela was a die maker for 39 years at Pontiac.
Akerson said in a message to employees: “I will leave with great satisfaction in what we have accomplished, great optimism over what is ahead and great pride that we are restoring General Motors as America’s standard bearer in the global auto industry,” Akerson said in a message to employees.”
“With an amazing portfolio of cars and trucks and the strongest financial performance in our recent history, this is an exciting time at today’s GM. I’m honored to lead the best team in the business and to keep our momentum at full speed.”