SOUTHERN ARIZONA – In a report by the Congressional Oversight Panel, taxpayers are not likely to recoup more than $20 billion the government initially invested in Chrysler and General Motors Corporation under the guise of automotive stimulus.
“Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount,” the report said.
Taxpayers own 10 percent of both automotive companies, and the value of those company’s shares would have to skyrocket before any return on investment could even be conceived.
The panel said that taxpayers were largely “left in the dark” regarding the Treasury’s oversight and review process when the government provided TARP funds to the automotive industry.
“The Treasury auto team failed to disclose to the public both the factors and criteria it used in its viability assessments, the scope of outside involvement in its evaluations, and its basis and reasoning for selecting particular benchmarks,” according to the report. “Simply, its disclosures did not go far enough.”
In total, the government has invested nearly $75 billion in automotive bailouts.
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