After successfully getting General Motors Company and Chrysler Group LLC out of bankruptcy protection, the Obama administration said that it is now ending the government-financed warranty program for the two automakers. Ron Bloom, the head of the auto task force, told a House Judiciary subcommittee about the decision in testimony yesterday, reports Automotive News.
“With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis,” Bloom said in his prepared testimony.
The U.S. invested $641 million to fund the warranty program which has been returned to the Treasury along with interest payments, Bloom said. Bloom did not say if any of the two companies tapped into the funds.
A GM spokesman said that GM did not use the funds and a Chrysler spokesman said that the company does not give out warranty figures.
– By: Omar Rana
Photo Credit: Official White House photo by Pete Souza (via Flickr)