Taxpayers narrows loss on auto bailout

WASHINGTON taxpayers over $14 billion in the Government will lose $80 billion bailout for Chrysler and GM, said the White House Wednesday, portrays the result as good news, because the losses far lower than originally expected.

Seizing on the figures, took Obama management credit for the resurgence of the US auto industry, taxpayers assured that the Government bailout of Chrysler and GM has been an investment worth making.

A report by national economic Council of the President indicated that as a Detroit automaker rebound, the taxpayer about $14 billion, or less than 20 percent of the $80 billion are loss from the bailout to support which that company uses in the year 2008 the Government of Bush and Obama. The Treasury Department had expected losses closer to 60 percent.

The report was part of a carefully thought-out strategy by the white to draw the attention of House is an industry that is on the road to recovery and their footprint on the obvious presidential in key battleground states. In the last few days Vice President Biden and Treasury Secretary Timothy Geithner have encouraged both GM and Chrysler intervention by the Government as a risky moves by President Barack Obama, which has paid off.

Obama is the best of Chrysler's announcement last week that it $5.9 billion in U.S. prematurely repay credit by the Canadian government loans and a 1.7 billion dollars is. These payments cover most of the bailout money, which the company after it almost from cash in ran and was controlled by a Government bankruptcy stored.

General Motors co., which went bankrupt by received a 49.5 billion $ in the U.S. bailout. The Federal Government has reduced its participation in the the company from 61% to 26.5% the GM after the sale of part of the participation in November. Ford not sought Federal Government help.

Story: U.S. auto sales cooled in may

The national economic and Social Council report said that since General Motors and Chrysler from bankruptcy last year, the industry as a whole has created 115,000 jobs.

The White House is participation in a "I-told-you so" moment and Obama itself is this message Friday to a Chrysler plant in Toledo Ohio.

Ron Bloom, Advisor to the President of top production, summed up the White House view Wednesday: "at the time, the President chose Chrysler, at the time he help had decided, General Motors, a lot of people help, said throwing good money after bad, get you never out, these companies are not saved."

Success is a potentially powerful political history of the President of the auto industry. With Washington focused now on budget intersect, which does not have management of political use, money for jobs initiatives, let alone a new economic stimulus packages.

Still, is any indication, that the Administration can do that it will be saved or restored jobs a plus in an environment where unemployment hovers around 9 percent.

What's more, is Outlook the auto industry in States such as Michigan, Ohio, Indiana and Missouri, all of them important for Obama's re-election.

"We believe that the steps that we have and the steps were in partnership with us have positioned these companies where they have a real chance of success", said bloom.

Bloom refused, if the Government of that remaining shares would sell the company's share price to GM say varied between $29 and $39 in the last two months. It was something more than to sell $30 per share on Wednesday. "We are not a fire sale of the first day can sell those of us who keep on the other hand, we do not wait for a target price," bloom said.

The Government's decision to promote the industry and the role of the rescue plans came on the same day the industry reported selling a transition in may after its aggressive appearance earlier this year. General Motors sales fell 1.2 percent of fewer offers, which cut the customers offered and sales to rental car companies. Ford sales fell 2.4 percent strong sales of small cars were impacted by lower sales of pickup trucks.

The White House economic report sound a word of warning for Chrysler, say, that there remain challenges. He quoted a line still going strong on large vehicles and light trucks. The report added: "it must be his ability to overcome past to skepticism about the brand and win and keep customers in the long term prove."

Still, in an opinion piece in the Wednesday edition of the Washington Post said Geithner US car companies are making a comeback in the American production now at the top.

"We can not guarantee its success, and at some point they can stumble." But we have a better shot them, "wrote Geithner." "While we do not get back all of our investments in the industry, we are much more than most predicted, restore and far earlier."

GM and Chrysler were to approve an emergency loan package to Congress on the verge of collapse in the last days of the Bush administration. The Bush Administration gave $17.4 billion in loans to the company and needed to develop a restructuring plan by mid-February 2009.

Obama's administration pumped billions more in the automaker later, but won concessions from industry representatives spring, which push GM and Chrysler by bankruptcy court in the summer of 2009.

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