$14 billion dollars lost on the auto bailouts says that it was the American public that got fucked.
Obama's economic panel applauds GM, Chrysler resurgence
By Todd Spangler and Aaron Kessler, USA TODAYUpdated 12h 13m ago | 126 | 4
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WASHINGTON — President Obama's top adviser on U.S. manufacturing touted gains made by General Motors and Chrysler since their 2009 restructurings with $80 billion in taxpayer aid, but said it's too early to say when the government's remaining stakes in the two will be sold.
By Alex Wong, Getty Images
Ron Bloom, an adviser to President Obama, at a Wednesday news conference.
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By Alex Wong, Getty Images
Ron Bloom, an adviser to President Obama, at a Wednesday news conference.
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Ron Bloom spoke to White House reporters Wednesday after release of a report by Obama's National Economic Council titled, "The Resurgence of the American Automobile Industry." It says taxpayers likely will lose about $14 billion of the $80 billion.
The report came ahead of the president's scheduled visit Friday to a Chrysler plant in Toledo, and amid clear signs that the administration is moving to take credit for the survival of the domestic auto industry.
"A lot of people said, 'You're throwing good money after bad; you'll never get out; these companies aren't saveable,'" said Bloom in praising Obama's "courageous decision to stand behind these companies."
That decision was widely criticized by those who believed they should go it on their own, as well as by those who believed that even federal aid could not save them.
Bloom said that the market share for U.S. automakers is up, that thousands of jobs have been added and that GM, Ford and Chrysler are better equipped for another rough patch if gas prices rise more. "The Big Three are making better cars, and they're making better, more fuel-efficient cars," he said.
The report calculated that 20,000 jobs have been saved or created in the industry. Recently, GM announced additional shifts and investments; Chrysler paid its government loans; and Fiat, the Italian firm that took a large share of Chrysler, announced its intention to buy the stakes held by the U.S. and Canadian governments.
"For the first time in more than a decade, all three American automakers are profitable, expanding production and jobs, and gaining market share," the report said.
The U.S. cut its stake in publicly held GM by about half last fall, and Bloom said the rest will be sold "as soon as practicable." He said that the government will get out of the auto companies as soon as it can, while recouping as much of the investment as it can.
Bloom said that while the loss of $14 billion would be serious, it would still be worth it: "We're not going to apologize for the fact that there are literally hundreds of thousands of Americans working today because of what happened."
But many Americans still remain critical of decisions made by Presidents Bush and Obama, and Congress, to risk public money in private business.
Kirsten Kukowski, a spokeswoman for the Republican National Committee, said, "President Obama should put as much effort into making sure the taxpayers are paid back in full as they have been in taking unnecessary victory laps."
