Bailing out our foundering auto industry will cost at least $83 billion, Time magazine reports.
Here’s how they get there:
- $4.1 billion from the Treasury to Chrysler in debtor-in-possession financing last week gets us to $8.2 billion federal loans. (Loans we won’t ever see again.)
- $15.4 Billion for GM from the TARP, it could hit $27 billion before all is said and done.
- $5 billion went to GMAC.
- $1.5 billion to Chrysler financial.
- $5 billion to auto part suppliers.
- $4 billion for cash for clunkers.
- Billions more for covering warranties.
- $25 billion from the DOE to get more fuel efficient cars on the road.
- $8 billion more requested by auto part suppliers.
- $11.5 billion will be needed for GMAC according to the stress test.
Like any good bailout, we’re probably just getting warmed up, says Time. The bankruptcy of GM could cost $100 billion.
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