The Truth Behind Chrysler's Fake Auto Bailout Pay Back


The New York Times reports: “Chrysler said Tuesday that it had paid back $7.6 billion in loans from the American and Canadian governments, marking another significant step in the revival of the company, the smallest of the Detroit automakers.” But…

American taxpayers have already spent more than $13 billion bailing out Chrysler. The Obama administration already forgave more than $4 billion of that debt when the company filed for bankruptcy in 2009. Taxpayers are never getting that money back. But how is Chrysler now paying off the rest of the $7.6 billion they owe the Treasury Department?

The Obama administration’s bailout agreement with Fiat gave the Italian car company a “Incremental Call Option” that allows it to buy up to 16% of Chrysler stock at a reduced price. But in order to exercise the option, Fiat had to first pay back at least $3.5 billion of its loan to the Treasury Department. But Fiat was having trouble getting private banks to lend it the money. Enter Obama Energy Secretary Steven Chu who has signaled that he will approve a fuel-efficient vehicle loan to Chrysler for … wait for it … $3.5 billion.

So, to recap, the Obama Energy Department is loaning a foreign car company $3.5 billion so that it can pay the Treasury Department $7.6 billion even though American taxpayers spent $13 billion to save an American car company that is currently only worth $5 billion.




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Posted in Business, Politics, Taxes
32 comments on “The Truth Behind Chrysler's Fake Auto Bailout Pay Back
  1. bsfurg says:

    I am beginning to believe that anyone is big business is nothing but bigger liars.. is that the first thing men and women learn to do any more when they get highpowered jobs… what has america come to when ppl from the presidient down has to lie to save there job… someday maybe america will get there morals back..

    • samtman says:

      This blog hates America and its Auto Industry.

      • tonyscott317 says:

        Seriously? As I read this, I see people that would die for this country. However, they read the US Constitution and know the Bills of Rights. They're (we're) just not willing to accept the lies and half-truths and deceptions. We've gotten them from EVERY administration, so it isn't about red/blue, left/right, or DEM/GOP – it's about who wants small government (as our founders designed) and lots of freedom, or utterly invasive government and little or no freedom. Just read what's said from day to day and see if you don't see it the same way.

        • AZ Don says:

          Tony I don’t know how to break this to you but samtman is a progressive liberal, I’m pretty sure of that and you cannot reason with an unreasonable person. I have not met a progressive liberal that was reasonable yet. I am, by the way, separating Democrats from progressive liberal (claimed) democrats. Most of the progressive liberals are Socialist, Communists or Marists.

          Consequently, trying to reason with him is a waste of time.

        • TRT says:

          WHAT WE CAN’T CHANGE, GOD CAN!! TIME TO HIT YOUR KNEES AND PRAY !!!

      • land of the free? says:

        Samtman, could you beworkng for obumer?

        Internet web sites, pundits, bloggers, commentators and denizens of the “alternative media” who are critical of Barack Hussein Obama beware, as you will now be “officially” in the crosshairs of the Obama White House. As part of his 2012 re-election campaign, the Obama administration this week created an “online rapid response team” tasked specifically with quashing any Internet articles and news critical of Obama.

        This team is headed by Internet guru Jesse C. LEE, 31 of Tacoma Park, Maryland, who was named the “Director of Progressive Media & Online Response.” Unsurprisingly, this is the first administration in history to ever create such a position, and LEE is well suited to head the Ministry of Propaganda, err… the Progressive Media & Online Response team.

        • Mutantone says:

          And he is being paid by the government to support Obamaommunist campaign efforts to deliberate sway the public with misinformation lies and illusions. The fact that the GM bail out was for the union not the company that is why they have control of the company. That the propaganda minster is now on line to spread the lies and to counter the republican message even through coming out as a republican author to add to the misinformation and make the republicans look like they are not coherent or stand for any thing. It is like the recent election where the republican strong hold was lost with the use of a fake tea party candidate, We will see more Marxist agendas coming out in these new elections, whit fake candidates designed to take votes mark my words Trump will come out again to run albeit he is a life long democratic supporter, he will run as a republican or tea party member just to take away votes to allow the democrats to win

    • EddieW says:

      As goes the government, so goes the people, this is a historical fact…I hate it, but can't avoid it…It used to be said, as goes the Prince (of the people) so goes the people…Also True!

      Obozo, our Liar in Chief, has set the stage, with lies, doing many things against our own Constitution and laws… The Alphabet media totally behind him, pushing us into Islam, and I wondered how it was possible for Israel to turn away from God as often as they did, and get sold into slavery!! Amazed how fast everyone got behind the rush to Islam!!! Devastated too!!

    • nax777 says:

      This story and all the cute comments and slams will mean nothing in less than 30 years. Invasion is of no consequence as long as the two parties can hold their power. The powers can change names and faces this too matters not. People’s desire for power will always remain a constant.

      It is irrational to think that any single payer social program will work. It is irrational for nations to tax its way out of poverty. It is irrational to help overpopulated poorer nations by becoming one. It is irrational to believe that a power convinced that you have nowhere else to go will do your biding.

      A true Conservative and a true Liberal agree on one thing though for different reasons. Any single payer social program is a nutty idea! Now each believes that it’s not so nutty as long as their side is managing it. Pubs and Dems call rational people cruel, heartless nut cases. Rational and irrational also no longer hold true meaning.

      Replace the powers with citizens that can be immediately removed by citizens and never serve for a life time. We must take control ourselves. Please join with us at Goooh.com you might be able to click on my name. This will take you to my link page that links to Goooh.com, NumbersUSA.com and SBA-list.org.

      P.S. Have you heard of “you cut” @ http://majorityleader.gov/YouCut/

    • ChuckL says:

      bs, Did you fail to notice that all involved in this fiasco were politicians, mostly Progressives?

      • patty says:

        Progress use to mean to go forward for the better. Leave to the liberals to GO Backwards. God Help Us.

  2. El Loco says:

    I will never purchase or even own another Chrysler or GM product. At least until they break the UAW strangle hold on their industry and repay, in full, these "loans".

    • CalBob says:

      They'll never be able to repay all the stockholders, who invested, in good faith or the Republican dealership owners they screwed from the git-go…so obvious was their bigotry.

    • patty says:

      The last big truck we purchased (2010) was Ford because they didn't take bailout money AND they have improved their product.

  3. Reading,Writing, Math, and Musical Chairs is what we should be teaching in school. The bank and auto bail outs were a form of musical chairs. Same thing with QE1,2,? Don't be distracted by the music in life and end up being 'it'. WE The PEOPLE must know the rules before entering the game. The Federal Reserves,IRS, and Treasury are Socialism at it best, and they continue to decieve the people into believing that they are free.

    • joanf says:

      Reading, writing, US history and math have flown out the window in some schools in the USA. In Arizona, they teach a class, in how to overthrow the American Government, and no one in Washington DC, pays one bit of attention to this treasonous act. Where in the world is Education Secretary Arne Duncan? The only thing I recall him acting on, was the appointment of the Safe school Tsar Kevin Jennings, a member of the Love between men and boys organization. Mr. Jennings, has a questionable reading list he plans to introduce, on the subject of sex in the school bathrooms. It doesn't make me feel safe for all the kids, and what he will do for their young lives. Something is seriously wrong and the only way to fix it is to vote wisely in 2012, to remove those who do not represent true Americans and the Constitution!

    • Joseph says:

      Yea! We are free as long as we behave ourselves!

      • Rambo RVN says:

        If the crap we're having to put up with continues much longer, we may not be behaving ourselves like they want or expect us to.

  4. Ben F. says:

    Don't blame the car company or big business, blame obozo-in-chief who used his mob thinking to get them the money. Wonder how much went into obozo's pocket as a pay back?

    • Ken Roberts says:

      Enough to get the billion he will spend on re-election just think we get to fund his campaign even if we do not want to.,

  5. Boletero says:

    Obamanomics at it's best.

    Get your hot dogs…… right here. What a carnival, more fun than a barrel full of monkeys !!!!!

    I like you!! You yanks make me laugh……..

    Saludos del sombrero..

  6. Karl Larsen says:

    Too bad. I had hoped this was true. But these days…

  7. kenneth dameron says:

    I watched Mr. Chu, the Energy Secretary, on TV recently when he testified at a Congressional hearing, the subject of which, I believe, was the proposed FY2012 budget for his Department. He seemed to have little to no grasp of what he was talking about, unable to answer many questions posed to him, promising to get back to the committee after he had time to ask the appropriate people. Not surprising, though, considering the quality of Obama's Cabinet, which, with the exception of Gates and Clinton, is universally deficient. My favorite O'Bozo is Salazar of Energy–he could not find the men's room!

    • Drew Page says:

      Mr. Chu is the genius who counciled Mr. Obama that gas prices needed to go up to $6.00 a gallon to get Americans to buy more fuel efficient cars.

  8. PENELOPE8 says:

    THEY ARE INTERMINGLING ALL THESE "DEPARTMENTS OF" IN SUCH A WAY THAT NO-ONE KNOWS WHO IS RESPONSIBLE FOR WHAT — AND VIOLATING CONSTITUTIONAL BOUNDARIES TOGETHER WITH CO-MINGLING OF FUNDS. BY DOING SO NO-ONE KNOWS THE TRUTH. OBAMABINLADIN AT HIS WORST.

  9. Drew Page says:

    What am I missing here? If the original bailout loan to Chrysler was $13 billion and $4 billion was forgiven, that would seem to leave $9 billion left to repay. If Chrysler repaid $7.6 billion, how could there be another $7.6 billion to repay?

    Further, where does Mr. Obama get off forgiving $4 billion of debt that we taxpayers are on the hook for? When the government decided to bailout Chrysler and G.M. we were constantly being told that these two companies owed us taxpayers this bailout money. I know I never gave any consent to forgive even a dime of the loan that we taxpayers gave these two companies. To quote Louis Farrakan, Mr. President, "Who the hell do you think you are?"

  10. Ladd Prier says:

    How is it not obvious that we no longer have a free country? BO and cohorts are communist regardless of the progressive labels they will allow and they have slammed a rat's nest of legislation and debt on us that will take decades to unwind if, indeed, there is any unwinding at all. They may even believe they have done correct and moral things but make no mistake, they will be violent large scale before they allow any significant undoing. Look at Wisconson and the union thugs: its not about workers' rights, it is all about power, power over you!

    • Dawn says:

      I agree with you. Obama acts like tin pot dictator. He needs to be impeached for not upholding his oath to the constitution and that goes for Pelosi and Reid. We need to teach our children the Constitution because the government schools (indoctrination centers) will not do it. It is going to take us a long time to get back to basics but us tea party members are in this for the long haul.

  11. Dr. Real says:

    Now, this election, is the crucial time to change the path of the USA. We've allowed idiot's to run our country for too long. We've been quiet about their transgressions in the past. No more…get involved…go to a local party meeting…join. This will be our strength.

  12. TRT says:

    WHAT WE CAN'T CHANGE, GOD CAN!! TIME TO HIT YOUR KNEES AND PRAY !!!

  13. Dawn says:

    I love my pontiac Grand Am. But it has been discontinued. But now I will never buy a government motors car ever. Unless I buy it used from a secondary dealership no GM car will enter my garage.