Bailout Watch 567: Feds Mandate Chrysler Green Car

Edward Niedermeyer
by Edward Niedermeyer

From the just-released GAO report ( PDF) on the auto bailout:

Chrysler’s shareholders, including Treasury, have agreed that Fiat’s equity stake in Chrysler will increase if Chrysler meets certain benchmarks, such as producing a vehicle that achieves a fuel economy of 40 miles per gallon or producing a new engine in the United States. Treasury officials stated that they established such up-front conditions not solely to protect Treasury’s financial interests as a creditor and equity owner but also to reflect the Administration’s views on responsibly utilizing taxpayer resources for these companies. While Treasury has stated it does not plan to manage its stake in Chrysler or GM to achieve social policy goals, these requirements and covenants to which the companies are subject indicate the challenges Treasury has faced and likely will face in balancing its roles.

Edward Niedermeyer
Edward Niedermeyer

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  • Djn Djn on Nov 02, 2009

    @Lumbergh21 Don't gloat too soon, the show is not over.

  • Golden2husky Golden2husky on Nov 02, 2009
    Good to know that the government won’t force the manufacture of Obamamobiles or Pelosi cars, like those right wing wackos were predicting.... Yawn...
  • Dick Dick on Nov 02, 2009

    The title for this post should have been, Fascism 101

  • Jeff Puthuff Jeff Puthuff on Nov 02, 2009
    Fiat’s equity stake in Chrysler will increase if Chrysler meets certain benchmarks Key word here is if. There's no mandate; it's just smoke and mirrors that the Treasury is using to get out from under the wreck that is a subsidized Chrysler. A transfer of ownership to Fiat in exchange for a maybe.