GM, Chrysler used most of bailout money for day-to-day expenses

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)