The cost of the 2009 bailout of the U.S. automotive industry by the federal government will cost the country $3.4 billion more than was previously estimated, reports said Tuesday.
The cost of the bailout of Chrysler Group LLC and General Motors Company (NYSE: GM) has risen to $25.1 billion, up from earlier Treasury Department estimates of $21.7, according to The Detroit News. The latest report may still underestimate the total cost, though.
The Bush and Obama administrations spent a combined $85 billion on the bailout, about half of which has been repaid to the government, Reuters reported. The repayments have come as cash and equity in the companies.
The government currently holds 500 million shares in GM and will need to sell at an estimated $53 per share to recoup its costs. Shares of General Motors Company (NYSE: GM) rose 16 cents to $20.63 Tuesday.
Fiat SpA (Milan: F), which now owns Chrysler Group LLC, shares rose 1.48 percent to €4.26 ($5.26).