GMAC, the financing arm of government-owned General Motors, is seeking a third multi-billion-dollar bailout from taxpayers.
The Treasury Department is considering investing an additional $5.6 billion into GMAC, which has already received $12.5 billion in government funding. Former White House "auto czar" Steve Rattner said recently that the Obama administration's 61-percent stake in General Motors and its outstanding loans are worth only about $25 billion of the $50 billion loaned to GM. James Gattuso, a research fellow in regulatory policy at The Heritage Foundation, calls the latest bailout for the auto industry "outrageous." "It seems like it's been days since the last bailout," he remarks. "These are coming in every size, shape, and form now -- starting out with the direct support to GM and Chrysler, the original support to GMAC, the 'Cash for Clunkers' program, reports that a luxury car manufacturer would be receiving grants to make 'green' automobiles, and now a third bailout to GMAC. "It just never ends," laments Gattuso, "and you have to wonder when the taxpayer will finally run out of patience for this." The luxury carmaker Gattuso referred to is Fisker Automotive, which has been given more than half-a-billion dollars to manufacture hybrid luxury cars. According to one report, last month's $528-million award from the Department of Energy made it possible for Fisker to purchase GM's plant in Wilmington, Delaware, which shut down in July.
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