Auto Bailout costs Taxpayers $9.26 Billion
Dec. 31, 2014—Roughly $9.26 billion was lost on the U.S. government’s auto industry rescue program, according to a report released by the U.S. Treasury earlier this week.
The government reportedly received $70.42 billion of the $79.68 billion it loaned to General Motors, Chrysler, Ally Financial, Chrysler Financial and automotive suppliers through the federal Auto Industry Financing Program.
The program was part of the larger Troubled Asset Relief Program, or TARP.
Though the bailout ended in a loss, it kept GM and Chrysler from going out of business and filing for bankruptcy, an event that likely would have caused a deep depression in the U.S. economy, according to a report from USA Today.
Despite the net loss, auto sales hit its highest numbers in eight years, and total sales have increased every year since a swoon in sales in 2009.
The TARP program is estimated to have saved as many as 2.6 million jobs alone in 2009, and avoided the loss of $105 billion in lost taxes and social service expenses.