According to two anonymous U.S. officials, the Obama Administration expects to lose about $30 billion of the $82 billion government bailout of the auto industry.
The Obama Administration has said it will now interfere not just with the “selection of the company’s board of directors,” but also in “fundamental corporate decisions,” and “major corporate events and transactions.” For example, Obama recently pressured GM to keep its headquarters in crime-ridden, economically-collapsing Detroit.
Saving General Motors and Chrysler saved hundreds of thousands of jobs, President Barack Obama said today.
“It was right decision then and the right decision now,” Sperling said, calling it a “courageous decision by the president” to give the two automakers a “rebirth even though he knew it was not going to be politically popular.”
GM chairman and CEO Edward Whitacre Jr. said that GM will make a $1 billion payment of its outstanding loans on Dec. 31 and plans similar quarterly payments.
Fiat, which owns 20 percent of Chrysler, must pay back $6 billion of the government’s $12 billion Chrysler loans, much of which have been forgiven, the News said.
In addition, the government has loaned $13.5 billion to GMAC and now owns 35.4 percent of the firm that finances car owners and dealerships.