Obama Fines GM $35 Million After Losing Billions in Bailout
The Department of Transportation announced Friday that it has reached an agreement with General Motors, and the company will pay a $35 million penalty for delaying a recall of vehicles with faulty ignition switches.
“Safety is our top priority, and today’s announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” said U.S. Transportation Secretary Foxx.
But $35 million is only a fraction of the money lost by the U.S. government in the bailout of General Motors.
In May, a report from the TARP inspector general noted that the U.S. Treasury had lost $11.2 billion in the bailout program.
“The goal of Treasury’s investment in GM was never to make a profit, but to help save the American auto industry, and by any measure that effort was successful,” Adam Hodge, a Treasury spokesman explained to Bloomberg News at the time.