The facts show the bailout of American automobile industry has been a success, at least according to Dan Akerson, General Motors chairman and chief executive officer, who made the assertion to shareholders at the company’s annual stockholders meeting in Detroit.
“Four years on, it’s pretty hard to argue it wasn’t successful,” he said. “The American public has been well served. All three American companies are profitable and the American manufacturing base is still 50% larger than China’s.”
Akerson acknowledged the decision to bailout Detroit carmakers was very controversial at the time. However, the decision by “two administrations with very different political perspectives” has proven its worth by helping protect the U.S. manufacturing base during the recession. The bailout also meant the U.S. government didn’t have to cover $26 billion in pension costs connected to the automakers.