Auto Industry

In total, Treasury invested approximately $80 billion in the automotive industry. As of December 21, 2012, we have recovered more than $46 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

On December 19, 2012 Treasury announced its intent to fully exit its investment in General Motors (GM) within the next 12-15 months, subject to market conditions.  Two days later, GM purchased 200 million shares of GM common stock from Treasury at $27.50 per share, for proceeds of approximately $5.5 billion. Treasury intends to sell its remaining 300.1 million shares of GM common stock through various means in an orderly fashion within the next 12-15 months, subject to market conditions. Treasury intends to begin its disposition of its remaining shares as soon as January 2013. For additional details about Treasury's plan see the press release from December 19

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.