Study: Auto bailout saved over 1 million jobs

Filed under: Government/Legal, Earnings/Financials

The Center for Automotive Research has released a new study detailing the impact of the auto bailout of 2009. According to The Detroit Bureau, the group found that the government's involvement in the automotive industry saved 1.14 million jobs and $96.5 billion in personal income in 2009. The study also says that in 2010, around 314,400 jobs were saved by the bailout and that, in total, the loans to General Motors and Chrysler allowed $28.6 billion in social security and income taxes to be paid back to the federal government.

If these figures are accurate, they mean that, despite the fact that the two carmakers have only repaid $13.4 billion of the $80 billion that was loaned out, the government only needs to receive another $38 billion to cross a theoretical break-even point. That would be a pretty rosy picture compared to the doom and gloom that opponents to the bailout predicted before the treasury opened its doors. The full study is available at the Car Group web site.

[Source: The Detroit Bureau]

Study: Auto bailout saved over 1 million jobs originally appeared on Autoblog on Wed, 01 Dec 2010 10:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Juan Pablo Montoya Joseph Francis Nemechek III Ryan Joseph Newman Kyle Eugene Petty Floyd Anthony Raines