GAO says Treasury cannot adequately monitor Chrysler, GM
Reports today from the Government Accounting Office are critical of the Obama administration's ability to adequately monitor the US Government investment in the American automotive industry. he auto task force has lost 8 of 12 professional members and Ron Bloom, the head of the task force is now dividing his time with an additional Presidential appointment.
The government currently holds approximately a 9% stake in Chrysler and a 60% stake in GM which will reportedly be sold off when the companies appear to be profitable and capable of sustained independence.
The government has spent $81.1 Billion in the tow companies in 2008 and 2009 and according to the GAO report, there is almost no chance that the companies will grow to a point that the taxpayers will recover the investment.
The GAO report also indicates that there is a lack of clear direction how or when the government will declare the companies profitable enough to allow the government to sell their stake in the manufacturers.
The government currently holds approximately a 9% stake in Chrysler and a 60% stake in GM which will reportedly be sold off when the companies appear to be profitable and capable of sustained independence.
The government has spent $81.1 Billion in the tow companies in 2008 and 2009 and according to the GAO report, there is almost no chance that the companies will grow to a point that the taxpayers will recover the investment.
The GAO report also indicates that there is a lack of clear direction how or when the government will declare the companies profitable enough to allow the government to sell their stake in the manufacturers.
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