A government watchdog has found out that General Motors and Chrysler have used most of their bailout funds for day-to-day expenses including payroll costs and payment to suppliers.
The report, which was released earlier today, said that GM used about 65 percent, or $32 billion, of its bailout funds for operating expenses. The Detroit automaker received a total of $32 billion in loans. Chrysler used 84 percent of its funds on day-to-day expenses. It received $12.5 billion in total.
The report states that GM has $13.7 billion left in its bailout money. Chairman and CEO Ed Whitacre Jr. said that GM plans to repay the loans in one lump sum instead of quarterly installments.
– By: Stephen Calogera
Source: AP (via MSNBC)