Consumer Law

General Motors and Chrysler Repay TARP Funds

By Kemnitzer, Anderson, Barron, Ogilvie & Brewer

The Obama Administration issued a report today entitled A Look Back at GM, Chrysler and the American Auto Industry. Actually, it is a short look back through the last tumultuous twelve months, to announce the unexpectedly rapid progress that General Motors and Chrysler are making toward repayment of their federal bailout money. You can read the entire report here. While Chrysler's relatively rosy outlook and General Motors' repayment of $4.7 billion will come as good news to taxpayers, their corporate success is small comfort to consumers whose warranty rights were trampled in the messy restructuring of both companies. The car buying public remains cautious. Like the manufacturers themselves, consumers are eager to pay off debts before going on a spending spree. Whether these icons of American industry will recover market share once pent-up demand spills over and credit eases will depend on whether improvement in vehicle safety and design follows the companies' financial improvement.

Full post as published by Lemon Law Blog on April 21, 2010 (boomark / email).