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Government Concludes, Yet Again, Taxpayers Won’t Get Money Back

GAO says GM, Chrysler won’t be valuable enough.

by on Nov.03, 2009

Is that our tax money under the hood?  Then-candidate Obama tours a Chrysler plant.

Is that our tax money under the hood? Then-candidate Obama tours a Chrysler plant.

Despite an increasingly optimistic outlook for the U.S. auto industry, taxpayers shouldn’t expect to recover the $80 billion of their tax dollars that have been invested in the survival of General Motors and Chrysler, according to government analysts.

A new report by the General Accounting Office contends that even when the two automakers were healthy, they simply wouldn’t have been worth enough for the government to recover its investment once it sells off its 61% stake in GM and 10% share of Chrysler.

This is not the first time such a conclusion has been reached as Ken Zino has previously reported. In fact, the GAO report appears to be a rehash of  a report released in September  by the Congressional Oversight Panel.

Getting the valuation of the two companies up to a profitable level is even less likely now, according to the GAO, a nonpartisan agency that serves as the investigative arm of Congress.

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“Treasury is unlikely to recover the entirety of its investment in Chrysler or GM, given that the companies’ values would have to grow substantially above what they have been in the past,” said a GAO summary of its latest findings.

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