In total, Treasury invested approximately $80 billion in the automotive industry. As of
July 31, 2012, we have recovered more than
$40 billion, and while we do expect some fiscal cost from the program, it will be far less than anticipated when the program began. Moreover, the program succeeded in its goal of rescuing the American automotive industry and saving a million jobs. For the latest cost estimates, see the most recent
Monthly Report to Congress.
Today, the industry is experiencing a remarkable comeback. All told, the entire industry has added more than 230,000 new jobs over the past two and a half years.
Chrysler
In May 2011,
Chrysler repaid its outstanding TARP loans six years ahead of schedule. More than $11.2 billion of the $12.5 billion committed to Chrysler has been returned to taxpayers through principal repayments, interest, and cancelled commitments. Treasury has exited its investment in Chrysler Group LLC (New Chrysler) and is unlikely to fully recover the difference of $1.3 billion owed by Old Chrysler.
GM
Treasury completed a successful
initial public offering of GM in November 2010, has recovered about half of its $50 billion investment, and has reduced its stake in GM from 60.8 percent to 32.0 percent. Treasury continues to monitor GM’s performance and evaluate options for exiting its remaining investment.
Ally
To date, Treasury has recovered nearly one-third ($5.5 billion) of $17.2 billion invested in Ally through repayments and other income. Treasury continues to monitor Ally Financial’s performance and evaluate options to exit its investment, which consists of 74 percent of Ally common equity and $5.9 billion of mandatory convertible preferred stock.