TARP Assistance for Chrysler: Restructuring and Repayment Issues

[Excerpt] During the recession, both of these U.S. automakers and two auto financing companies, Chrysler Financial and GMAC, received federal financial assistance from the Bush and Obama Administrations. Alone among the world’s major automakers, Old Chrysler and Old GM filed for bankruptcy and, with oversight from the Obama Administration as well as the bankruptcy court, restructured their operations in an attempt to become more competitive companies. Both bankruptcies took place in the summer of 2009. Reasoning that Chrysler was not financially strong enough to be an independent company, the Obama Administration reached an agreement with Fiat to take over the management of New Chrysler in a bankruptcy reorganization; Fiat also received a 20% equity ownership stake in the new company. The U.S. government’s assistance to Chrysler ultimately resulted in New Chrysler owing the government several billions of dollars in loans and the government having an initial 9.9% ownership stake in New Chrysler. In May 2011, the loans directly owed by New Chrysler were repaid; in July 2011, Fiat purchased the U.S. government’s remaining interests in the company, thereby ending direct government involvement with New Chrysler. The TARP assistance for Chrysler, however, was not fully recouped due to losses in the bankruptcy process and because the ultimate value of the government’s ownership stake in Chrysler was less than the amount of outstanding TARP assistance. This report describes the progress that New Chrysler has made since it was created from the sale of the Old Chrysler assets in July 2009 and the path of the divestment of the federal government’s stake in Chrysler

The Role of TARP Assistance in the Restructuring of General Motors

[Excerpt] This report analyzes the crisis leading to Old GM’s bankruptcy, the U.S. government’s assistance to, and role in, the new company, the progress that General Motors Company has made since it was created, and the recoupment of the U.S. government’s assistance for GM

Chronology of TARP Assistance for Chrysler

U.S. Auto Industry Bailout: Table of the Chronology of TARP Assistance for Chrysle

Government Assistance for GMAC/Ally Financial

U.S. Auto Industry Bailout: General Motors Acceptance Corporation (GMAC

Government Assistance for GMAC/Ally Financial: Unwinding the Government Stake

This report discusses the auto financing industry, particularly Ally Financial, formerly known as General Motors Acceptance Corporation or GMAC