The U.S. government ended up losing $10.5 billion on the General Motors bailout, but it says the alternative would have been far worse.
In Indiana, GM plans to spend $29.4 million for a metal castings plant in Bedford to make parts for small engines and for the new eight-speed and existing six-speed automatic transmissions.
In Kokomo, Chrysler plants rise with the resurgent automaker, while a GM plant across the highway hasn’t been so fortunate.
Strong U.S. sales in December capped a remarkable year for the auto industry. U.S. sales of models manufactured in Indiana in 2012 by General Motors, Toyota, Honda and Subaru outpaced the national rate, rising 17 percent.
The Treasury plans to sell its remaining stake in General Motors over the next 15 months, allowing the automaker to shed the stigma of being partly owned by the U.S. government.
From mini cars to monster pickups, sales of vehicles charged higher in June and eased concerns that Americans would be turned off by slower hiring and other scary headlines.
The U.S. auto industry and Kokomo have staged an amazing comeback. But the resurrection of U.S. automakers has done little to resolve a deep political divide over the bailout.
U.S. consumers, who set records for retail purchases during Thanksgiving weekend, helped boost U.S. auto sales in November to what is likely to be their fastest pace in more than two years.
The decision has little impact on the thousands of Indiana GM and Chrysler workers. As part of 2009 government bailouts, the two firms and their workers had to agree not to strike over wages.
Residents of the Anderson area—when they paid with health insurance provided by an employer—spent 76 percent more on health care in 2009 than the average American with employer health insurance, highest among all metropolitan areas in the nation.
The 2-million-square-foot GM Indianapolis Metal Center, closed this year, sprawls over more than 100 acres on the west bank of the White River and enjoys some of the best views of the downtown skyline.
General Motors Co. is investing $49 million in its Bedford plant, a move that will help to create or keep 91 jobs.