How Much Money The Government Make Off Of The Gm Loan
After filing for bankruptcy five years ago, General Motors is now one of the about assisting companies in the world.
GM has earned a stunning $22.vi billion since the dark days of the financial crunch, when the automaker was bailed out by the U.S. government. Taxpayers didn't fare nearly too. They'd lost $10.six billion past the time the U.South. Treasury section closed the books on the $49.5 billion bailout in December.
GM (GM), which filed for bankruptcy five years agone this Sunday, has repaid everything information technology was obligated to pay Treasury. Taxpayers came up short because the U.S. decided to purchase GM stock to go on the automaker alive instead of giving information technology a loan and saddling it with more debt.
Although GM has been very profitable since 2009, its stock toll never rose to a level that let Treasury to recoup that investment.
"Our goal was never to make a turn a profit only to stabilize the auto industry," said ane Treasury official on background the solar day information technology sold its terminal GM shares. "By whatever measure, we succeeded."
Related: GM cars sold: 12.1 million. Recalled: 13.8 one thousand thousand
GM is now one of the twoscore about profitable companies in the nation. It'south more than profitable than a third of the companies in the Dow, including Verizon (VZ), American Limited (AXP), Boeing (BA) and 3M (MMM).
But the costs related to its controversial ignition switch recollect essentially wiped out its profit in the first quarter of this year. GM estimates that repairs to the fifteen.viii million vehicles information technology's recalled this year volition price at least $1.7 billion. And that doesn't include whatever legal costs, fines or victim payouts that it volition face.
GM has admitted that its employees knew of an ignition switch trouble in millions of its cars well-nigh a decade earlier it ordered a recollect in Feb of this year. The flaw has been tied to at least 13 deaths, though government safety regulators expect that expiry cost will ascension one time the investigation is complete.
Critics of the GM bailout say the bargain should accept been structured so that a portion of futurity profits would become to repay taxpayers.
"We're certainly glad they're making a turn a profit now, just it would have been nice if there had been clawback provisions to make taxpayers whole," said Scott Hagerstrom, Michigan state manager of the Americans for Prosperity, a public interest group opposed to government spending.
Related: Taxpayers fabricated $52 billion on Geithner's bailouts
GM said that if it paid the Treasury more than information technology owed under terms of the rescue plan, the automakers' shareholders could sue.
Taxpayers also lost $1.iii billion on the bailout of Chrysler Grouping, but made money overall on the $700 billion in federal bailouts issued during the financial crisis.
GM's post-defalcation profitability is in stark contrast to the $100 billion it lost in the iv-1/2 years leading up to its filing. The bankruptcy helped it accomplish new labor agreements, and shed debt, non-productive factories and weak brands and dealerships.
"We volition always exist grateful for the 2nd risk extended to the states and we are doing our all-time to brand the near of it," said then GM CEO Dan Akerson on the day the U.S. sold its remaining GM pale.
Source: https://money.cnn.com/2014/05/29/news/companies/gm-profit-bailout/index.html
Posted by: foltzabsetiley.blogspot.com
0 Response to "How Much Money The Government Make Off Of The Gm Loan"
Post a Comment