U.S. loses $1.3 billion in exiting Chrysler

[ProfJohn]

So saving Chrysler cost us $1.3 billion.

Not sure if that is a good or bad thing. We saved 50,000 jobs at Chrysler and perhaps another 50,000 from other companies. So perhaps it was worth it.

Really hard to tell. If Chrysler had failed someone would have bought up its good parts and kept them going. So many of those jobs would have never gone away. etc etc

I would say it was a good investment overall. Saved a lot of jobs for a lot less money than the stimulus and these jobs will stick around once the government money stops unlike the stimulus jobs.

http://money.cnn.com/2011/07/21/autos/chrysler_government_exit/index.htm?cnn=yes&hpt=hp_t2

NEW YORK (CNNMoney) -- U.S. taxpayers likely lost $1.3 billion in the government bailout of Chrysler, the Treasury Department announced Thursday.

The government recently sold its remaining 6% stake in the company to Italian automaker Fiat, wrapping up the 2009 auto bailouts that were part of TARP.

Fiat paid the Treasury a total of $560 million for the remaining shares, as well as rights to shares held by the United Auto Workers retiree trust.

Originally, the government committed a total of $12.5 billion to the struggling automaker, Old Chrysler, and the company's newly formed Chrysler Group. Of those funds, $11.2 billion has been returned through principal repayments, interest and cancelled commitments, the Treasury said. The new Chrysler Group paid back $5.1 billion in loans in May.

Even though that means $1.3 billion will not be recovered from the bankrupt Old Chrysler, the Treasury called it a "major accomplishment."

"With today's closing, the US government has exited its investment in Chrysler at least six years earlier than expected," Tim Massad, Treasury assistant secretary for financial stability said in a release.

As part of the loan agreement, Chrysler was given until 2017 to return the bailout funds. If it had taken the full term, the interest accrued on the loans would have significantly reduced the government's losses.

 

[IceBergSLiM]

I'd say we got off pretty easy then. In the USA we piss billions

 

[Pocatello]

As much as I dislike the U.S government has to bail out Chrysler, it's not that bad compare to the hundreds of billions we wasted in Iraq and Afghanistan, and not ever get a red cent in return.

 

[waggy]

hold on. didn't someone post last week about how we made 1 billion off the deal?

but i do have to say 1.3billion is far less then i was expecting. was it worth it? no clue on that.

 

[nick1985]

Who the fuck is dumb enough to buy a Chrysler?

 

[ElFenix]

it wouldn't be the direct loss from chrysler and its suppliers, it would have been the added blow to economic confidence. most of the economy is confidence. as much as economists like to play that we're physicists, we're not. we're psychologists.

 

[airdata]

Doesn't Haliburten have something like 85 Billion they can't account for from iraq?

At this point 1.5 Billion is a drop in the bucket to the amount some of these people are looting from the american people.

 

[piasabird]

All we really had to do was ban all imports.

 

[theeedude]

Freedom isn't free.

 

[nick1985]

All we really had to do was ban all good cars

ftfy

 

[Fear No Evil]

I really need to start a failing company so I can get some of this free government money as well. All I need to do is create a shitty product, manage the company poorly, overpay all my workers and give them unsustainable benefits = $$$PROFIT!!!$$$

 

[Doppel]

budgetary noise. if that's the true cost it's not bad at all.

 

[PeshakJang]

Doesn't Haliburten have something like 85 Billion they can't account for from iraq?

At this point 1.5 Billion is a drop in the bucket to the amount some of these people are looting from the american people.

Some of what people? The Big Auto companies?

Isn't Chrysler a big evil corporation?

 

[SandEagle]

US TAXPAYERS lose. please fix title

 

[Jhhnn]

Had Chrysler gone under, the total cost of unemployment insurance would have been much higher, not to mention the cascading effect on the rest of the economy.

 

[TheSlamma]

We need this company to go away... clears the air of horrid commercials and the road of these complete piles of trash cars that no one needs. Stop clinging to these massive guzzlers that don't belong on our roads anymore.

 

[DominionSeraph]

I really need to start a failing company so I can get some of this free government money as well. All I need to do is create a shitty product, manage the company poorly, overpay all my workers and give them unsustainable benefits = $$$PROFIT!!!$$$

As a former GM shareholder, I can tell you that that ain't how it works. You wouldn't see a dime of government money. (As you're an idiot it's not surprising you've gotten it so wrong.)
What you'd have to do is steal from investors and then leave Uncle Sam with the bill.

 

[Vette73]

Anlther thing is Chrysler was a private company when we bailed them out.

Losing GM would have been bad on jobs, were making good cars finally, and were a public company. That and now they are making money and growing well.

Chrysler... should have been the Leman of the auto world.

 

[werepossum]

I'd say we got off pretty easy then. In the USA we piss billions

Sadly, pretty much this. If we really saved those jobs and lost "only" $1.3 billion, that's a massive success compared to most things government does. That's only $13,000 per job. Stimulus Rex cost over $200,000 per job, and most of those were only temporary.

Let's all have a drink and celebrate.

 

[sandorski]

That $1.5billion will be made back pretty quickly through Income Taxes and other Fees/Taxes from all the Workers. 10 years from now only the fringe will see these Bailouts as "bad".

 

[SpongeBob]

Who the fuck is dumb enough to buy a Chrysler?

they're doing something right, considering their sales numbers have been rather good lately.

 

[LegendKiller]

Sadly, pretty much this. If we really saved those jobs and lost "only" $1.3 billion, that's a massive success compared to most things government does. That's only $13,000 per job. Stimulus Rex cost over $200,000 per job, and most of those were only temporary.

Let's all have a drink and celebrate.

How many jobs did those jobs create? And how many jobs did the jobs from the jobs create? How many times does that repeat? How much tax is collected from the Nth order of effect from the first job?

Your brain is so one dimensional it's pathetic.

 

[Slew Foot]

Is there anyone stupid enough to buy a Chrysler? What a worthless POS company.

 

[BarneyFife]

Let Chrysler and their good pay jobs with benefits go under, lets get more small business jobs where the workers all make $8 hour, get no benefits, and the owner cheats on his taxes and puts all the money in a safe.

 

[Zorkorist]

Chrysler? In Detroit, Michigan?

The Motor City, that is sitting absolutely devestated, and fragile today?

This is what the Chrysler bailout achieved? (Beyond losing 1.3 Billion dollars)

Tell ya what... don't bail me out.

-John