Auto bailout: 78% spent so far

SigTARP Barofsky reports General Motors, Chrysler, GMAC and Chrysler Financial have spent $59.7 billion of TARP money they've received.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By David Goldman, staff writer

Auto industry's TARP expenses
Company Allocated Spent
GM $49.5 $35.8
Chrysler $12.5 $10.5
GMAC $13.4 $13.4
Chrysler Financial $1.5 $0
Source:SigTARP, Figures in billions of dollars
Which type of investments will you focus on in 2010?
  • U.S. stocks
  • Emerging markets
  • Bonds
  • Commodities
  • Im sticking with old-fashioned bank accounts

NEW YORK ( -- The U.S. auto industry has spent nearly 78% of the taxpayer funds lent to it by the Treasury Department through the Troubled Asset Relief Fund, according to a report released Thursday by a bailout overseer.

Neil Barofsky, special inspector general for the $700 billion TARP program said in his report that General Motors, Chrysler, GMAC and Chrysler Financial have spent $59.7 billion of the $76.9 billion that they received.

The vast majority of the spending was used to cover day-to-day operating expenses. GMAC and Chrysler Financial used the funds primarily to beef up their capital reserves so they could initiate more auto loans.

The report is the latest glimpse into how bailed out companies have used their TARP funds, and the first time taxpayers have seen how automakers have opted to spend their bailout money. It follows a similar report released by SigTARP in August that provided information from bailed out banks.

Previously, Treasury did not require companies that received TARP money to show how they were using it, claiming that it was not possible to show on a bank-by-bank basis.

But Barofsky said Treasury opted to reverse that position following Thursday's report, given Barofsky's demonstration that recipients could track their own TARP funds.

"[Treasury's] adoption of this recommendation is a significant step forward in providing the American taxpayers with the transparency they deserve on how their money is being used," Barofsky said in the report.

In addition to day-to-day expenses, GM said it spent $2.8 billion to resolve parts supplier Delphi's bankruptcy and $1 billion to wind down the parts of its business that remain in bankruptcy. Chrysler has used all of the funds that it has spent on operating costs.

GMAC used its entire allocation to grow its capital reserves, and it said the TARP funds helped it grow its loan originations from $1 billion in the fourth quarter of 2008 to $4.5 billion in the second quarter of 2009. Chrysler Financial, which was absorbed by GMAC, paid back its TARP funds in full. It had used the funds to initiate 85,000 new auto loans. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play


Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.