On December 19, 2014, Treasury announced that
it had sold its remaining stake in Ally Financial, effectively ending the Automotive Industry
Financing Program (AIFP). In total, Treasury invested approximately $80
billion in the automotive industry and recovered $70.4 billion, including the
proceeds from the final sale of Ally Financial common shares. The final cost of the program is far less
than anticipated when the program began. Moreover, the program succeeded in its
goal of rescuing the American automotive industry and saving a million jobs.
For the latest cost estimates, see the most recent
Monthly Report to Congress or the TARP Tracker.
The Big Three automakers (GM,
Chrysler, and Ford) have returned to profitability. An estimated one million
jobs were saved by the assistance provided under TARP. This assistance made it
possible for them to restructure and compete more effectively. As a result,
since 2009 the auto industry has continued to rebound.
On December 9, 2013, Treasury announced that
it had fully exited its equity investment in GM following the sale of all of
its remaining shares of GM common stock. In total, Treasury collected proceeds
of $39 billion from all of its investments in GM through repayments, sales of
stock, dividends, interest, and other income.
Treasury's Disposition of GM Common Stock
In November 2010, GM completed an initial
public offering, which yielded $13.5 billion in net proceeds for Treasury and
reduced its stake in GM to 500.1 million remaining shares of GM common stock.
In December 2012, as part of its continuing efforts to wind down TARP, Treasury
announced its intent to fully exit its remaining investment in GM within the
following 12-15 months, subject to market conditions. As part of that
announcement, GM agreed to purchase 200 million shares of GM common stock from
Treasury at $27.50 per share – a transaction that closed on December 21, 2012.
In January 2013, Treasury began the process of selling its remaining 300.1
million shares through pre-arranged trading plans.
- On April 11, 2013, Treasury
completed its first pre-arranged trading plan for the sale of its GM
common stock. Under this plan, Treasury sold 58.4 million shares of GM
common stock for total gross proceeds of approximately $1.6 billion.
- On June 6, 2013, Treasury
commenced its second pre-arranged written trading plan and sold 30 million
additional shares of GM common stock at $34.41 per share, in an
underwritten public offering in conjunction with GM's inclusion in the
S&P 500 index. The aggregate proceeds to Treasury from the sale were
approximately $1.03 billion. The UAW Retiree Medical Benefits Trust (VEBA)
also sold 20 million shares in the offering, making the total offering
size 50 million shares. Aggregate proceeds to VEBA from the common stock
offering were approximately $688 million.
- On November 21, 2013 Treasury
announced that the third pre-defined trading plan was complete with the
sale of 70.2 million shares of GM common stock.
- On December 9, 2013 Treasury
completed the sale of all its remaining GM common stock thus exiting this
In May 2011, Chrysler
repaid its outstanding TARP loans six years ahead of schedule. More than $11.2 billion of the
$12.5 billion committed to Chrysler has been returned to taxpayers through
principal repayments, interest, and cancelled commitments. Treasury has exited
its investment in Chrysler Group LLC (New Chrysler) and is unlikely to fully
recover the difference of $1.3 billion owed by Old Chrysler.
In early November 2013, Ally returned $5.9
billion to taxpayers. Then in January 2014, Treasury sold 410,000 shares of
Ally Financial, Inc. common stock in a private offering at $7,373 per share,
for approximately $3.0 billion. In April 2014 Treasury launched the IPO of
Ally, recovering a total of $2.4 billion. On September 12, 2014, Treasury
completed the first pre-defined written trading plan, recovering $218.7
million. On October 17, 2014, Treasury
completed a second pre-defined written trading plan, recovering $245.5 million.
On December 19, 2014, Treasury announced it had sold all of its remaining 54.9
million shares of Ally at $23.25 per share, for proceeds of $1.3 billion. In total, taxpayers recovered $19.6 billion on
the investment, roughly $2.4 billion more than the original $17.2 billion
investment in Ally.