Bailouts
European Loans
GM received loans from European governments in 2009, and has reduced its ownership stake in European operations as part of its reorganization.
[89] As of July 10, 2009, the new GM has over $40 billion in cash, with the company's reorganized liability total of $48.8 billion which includes $24.4 billion to be paid to the
Voluntary Employee Beneficiary Association (VEBA) trust, $9 billion to the U.S. and Canadian governments, and $15 billion in liabilities to suppliers and other bills. GM is slated to pay $10 billion to the VEBA trust in December 2009, with the remainder being paid in increments from 2012-19. GM isn't required to make contributions to its pension fund until 2013, but it may elect to if needed, since the company contributed $15.2 billion to its pension fund in 2003. Stock market conditions cause the fund value to fluctuate. In February 2009, GM's combined pension fund had about $85 billion in assets, $56 billion in assets for hourly pensions and $29 billion in assets for salaried pensions.
[90]
United States
Through the
Troubled Asset Relief Program the US Treasury invested a total $51 billion into the GM bankruptcy.
[91] Until December 10, 2013, the U. S. Treasury recovered $39 billion from selling its GM stake. The final direct cost to the Treasury of the GM bailout was $11
[92]-12 billion ($10.5 billion for General Motors and $1.5 billion for former GM financing GMAC, now known as Ally).
[93] Local tax incentives amounted to $1.7 billion, most of them in Michigan.
[94][95] A study by the Center for Automotive Research found that the GM bailout saved 1.2 million jobs and preserved $34.9 billion in tax revenue.
[93][93]
I admire Mr. Musk but he still puts his pants on one leg at a time.
