Auto Industry Bailout | featured news

The government expects to recover more money than anticipated from the auto bailout as it pulls back financially from the sector, but taxpayers still face billions in potential losses, the White House said.

Vice President Joe Biden on Saturday credited the Obama administration's intervention for the American auto industry's recovery from "the brink of extinction."

The Treasury department said on Tuesday that automaker Chrysler Group LLC has repaid $5.1 billion in bailout loans and ended its ability to draw a remaining $2.1 billion.

Chrysler Group LLC is expected to announce today that it will repay about $7.5 billion in U.S. and Canadian government loans on May 24 -- about a month earlier than it recently said, and years ahead of the original schedule.

In an impressive comeback from bankruptcy, General Motors last year posted its first annual profit since 2004....

Sixty-four former Chrysler dealers sued the U.S. government on Thursday, saying the Obama administration violated their rights by closing their stores during the automaker's bankruptcy without compensation.

An optimistic Chrysler narrowed its net loss significantly in the fourth quarter and forecast a net profit for 2011 as it continued a comeback from bankruptcy protection.

General Motors Co has withdrawn its application for $14 billion in subsidized loans from the U.S. Department of Energy, saying it has the financial strength to fund investment in more fuel-efficient and electric vehicles.

A congressional panel says taxpayers' estimated loss is down from $40 billion, and the three biggest recipients of bailout funds are heading toward financial stability. But whether the entire investment is recouped remains to be seen.

The U.S. Troubled Asset Relief Program, which risked $700 billion of government funds to bail out troubled banks and automakers, will cost taxpayers a mere $25 billion, according to an estimate released on Monday by the nonpartisan Congressional Budget Office.