Treasury Hikes Estimate of Auto Bailout Losses to $14.3B
WASHINGTON — The Treasury Department has raised the government's estimate of taxpayer losses due to the auto bailout by more than $400 million to $14.33 billion.
Earlier this summer, the Treasury had pared its loss estimate to $13.91 billion on its $85 billion bailout of General Motors Co., Chrysler Group LLC and auto finance companies according to The Detroit News.
Overall, the Treasury Department hiked its estimates that it will lose $36.7 billion on its $700 billion Troubled Asset Relief Program, including the value of some AIG shares.
That's up from an earlier estimate of $29.6 billion.
A Treasury spokesman didn't immediately comment on the reason for the change in the estimate.
The new estimate, posted late last week on a government's website, is as of June 30 and doesn't include a recent falloff in the price of GM stock.
In July, the value of the government's stake fell by $1.34 billion. At current prices, the government would lose more than $13 billion on its GM rescue.
The government has recovered about $23.1 billion of its $49.5 billion bailout of GM and still holds a 26 percent stake — or 500 million shares — after it shed about half of its majority stake.
The government lost $1.3 billion on its $12.5 billion bailout of Chrysler Group LLC and completely exited its bailout of the Auburn Hills automaker in July. Fiat SpA now holds a majority stake in Chrysler.
The government's efforts to shrink more of its GM stock and part of its majority stake in Detroit-based lender Ally Financial Inc. have been hampered by the weak overall stock markets.
The U.S. Treasury Department plans to raise $5 billion as part of a $6 billion offering when Ally becomes publicly traded. The Treasury Department owns a controlling 74 percent stake in Ally as part of the $17.2 billion bailout during the financial crisis.
About $126 billion of the $470 billion used in the Troubled Asset Relief Program is outstanding. The losses include $46 billion used by Treasury for housing programs.
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →