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AUTOMOTIVE
U.S. investment likely lost, GAO says
Taxpayers are unlikely to recover their full investment in General Motors or Chrysler, U.S. government investigators said Monday in the latest review to cast doubts that the government will recoup the $80 billion it poured into the two automakers.
The Government Accountability Office concluded that General Motors and Chrysler likely will not be valuable enough for the Treasury Department to break even on its investment in the two auto companies that went through bankruptcy earlier this year.
The GAO also revealed that the Obama administration is closely scrutinizing the finances of GM and Chrysler and has set some requirements on production even though it has said it will maintain a hands-off approach on the automakers' daily operations.
To recover the loans Treasury gave Chrysler and GM to keep them afloat, the automakers would have to reach valuations they did not approach even when they were healthier.
GM spokesman Greg Martin said "if we get our job done, the government has an excellent chance of getting a return on its investment." Chrysler declined to comment.
-- Associated Press
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