Did Gm Ever Pay Taxpayers Money Back
After filing for bankruptcy 5 years ago, General Motors is at present ane of the most profitable companies in the world.
GM has earned a stunning $22.6 billion since the dark days of the fiscal crisis, when the automaker was bailed out by the U.S. government. Taxpayers didn't fare near as well. They'd lost $x.6 billion by the time the U.Southward. Treasury department closed the books on the $49.five billion bailout in Dec.
GM (GM), which filed for bankruptcy five years ago this Sunday, has repaid everything it was obligated to pay Treasury. Taxpayers came up short because the U.S. decided to buy GM stock to keep the automaker alive instead of giving information technology a loan and saddling it with more than debt.
Although GM has been very profitable since 2009, its stock price never rose to a level that let Treasury to compensate that investment.
"Our goal was never to brand a profit but to stabilize the auto manufacture," said i Treasury official on background the day information technology sold its concluding GM shares. "Past whatever measure, we succeeded."
Related: GM cars sold: 12.1 million. Recalled: xiii.8 million
GM is now i of the forty most assisting companies in the nation. It's more assisting than a third of the companies in the Dow, including Verizon (VZ), American Express (AXP), Boeing (BA) and 3M (MMM).
But the costs related to its controversial ignition switch recall substantially wiped out its turn a profit in the starting time quarter of this year. GM estimates that repairs to the xv.viii million vehicles it's recalled this yr will cost at least $one.7 billion. And that doesn't include any legal costs, fines or victim payouts that it will face.
GM has admitted that its employees knew of an ignition switch problem in millions of its cars well-nigh a decade before it ordered a recall in February of this twelvemonth. The flaw has been tied to at least 13 deaths, though government condom regulators look that decease toll volition ascension once the investigation is complete.
Critics of the GM bailout say the deal should have been structured so that a portion of future profits would get to repay taxpayers.
"We're certainly glad they're making a turn a profit at present, just it would have been nice if there had been clawback provisions to make taxpayers whole," said Scott Hagerstrom, Michigan state managing director of the Americans for Prosperity, a public involvement grouping opposed to authorities spending.
Related: Taxpayers made $52 billion on Geithner's bailouts
GM said that if information technology paid the Treasury more than than information technology owed under terms of the rescue plan, the automakers' shareholders could sue.
Taxpayers also lost $ane.3 billion on the bailout of Chrysler Grouping, merely fabricated coin overall on the $700 billion in federal bailouts issued during the fiscal crunch.
GM'south postal service-bankruptcy profitability is in stark contrast to the $100 billion it lost in the iv-1/two years leading up to its filing. The bankruptcy helped information technology achieve new labor agreements, and shed debt, not-productive factories and weak brands and dealerships.
"We will always be grateful for the second risk extended to us and we are doing our best to make the almost of it," said then GM CEO Dan Akerson on the twenty-four hours the U.S. sold its remaining GM stake.
Source: https://money.cnn.com/2014/05/29/news/companies/gm-profit-bailout/index.html
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