Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
|
WASHINGTON (AP) -- Taxpayers face losses on a significant portion of the $81 billion in government aid provided to the auto industry, an oversight panel said in a report to be released Wednesday. The Congressional Oversight Panel did not provide an estimate of the projected loss in its latest monthly report on the $700 billion Troubled Asset Relief Program. But it said most of the $23 billion initially provided to General Motors Corp. and Chrysler LLC late last year is unlikely to be repaid. "I think they drove a very hard bargain," said Elizabeth Warren, the panel's chairwoman and a law professor at Harvard University, referring to the Obama administration's Treasury Department. "But it may not be enough." The prospect of recovering the government's assistance to GM and Chrysler is heavily dependent on shares of the two companies rising to unprecedented levels, the report said. The government owns 10 percent of Chrysler and 61 percent of GM. The two companies are currently private but are expected to issue stock, in GM's case by next year. The shares "will have to appreciate sharply" for taxpayers to get their money back, the report said. For example, GM's market value would have to reach $67.6 billion, the report said, a "highly optimistic" estimate and more than the $57.2 billion GM was worth at the height of its share value in April 2008. And in the case of Chrysler, about $5.4 billion of the $14.3 billion provided to the company is "highly unlikely" to ever be repaid, the panel said. Flushed down the toilet
|
|
|
Replying to: gagrice (Sep 09, 2009 7:23 am) And they wonder why I expect nothing but equally fuzzy math when a certain someone addresses a joint session of Congress tonight.
|
|
|
Replying to: pf_flyer (Sep 09, 2009 10:52 am) Fuzzy math should be taught in the schools. That is all we are getting from the Federal Government. |
|
|
Replying to: nippononly (Aug 10, 2009 7:38 pm)
|
|
|
Replying to: cooterbfd (Sep 09, 2009 12:45 pm) Lacrosse CXL vs. Genesis 4.6 Because the Genesis offers more for your money. In the above comparison the Genesis 4.6 was only $3k more. Has over 100hp more and gets the same fuel economy and was quieter. I'd buy a Taurus SHO for 40k instead of the LaCrosse. More HP, AWD, more technology, and the same fuel economy. CTS vs Genesis v6 In this article the v6 Genesis is picked above what is IMO GM's most impressive car. |
|
|
|
The announcement today that GM will shutter Saturn, since the Penske Auto Group will no longer buy Saturn, damages the government's decision to try to rescue GM.
|
|
|
Replying to: hpmctorque (Sep 30, 2009 5:57 pm)  Maybe AIG could use government $ to buy Saturn-Penske?  And we'll all just be happy producing too many cars, for a country with high-taxes who can't afford to buy the cars we produce. That's a solution for Obama and Congress. Start more car plants to put people back to work. Hire a few million people, pay them $70,000/year with great benefits, and just make lots of cars. That'll solve the health -care issue too for many! Let's just continue to use tax $ to produce stuff we don't need.
|
|
|
|
|
Replying to: hpmctorque (Sep 30, 2009 5:57 pm)
|
|
|
|
|
Replying to: british_rover (Oct 01, 2009 1:18 pm) |
|
|
Replying to: hpmctorque (Oct 01, 2009 7:56 pm) Maybe you think GM could put Saturn on Ebay? What would you bid? 
|
|
You are here:
Forums
Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
