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GM, Chrysler used bailout funds for daily costs

GM and Chrysler have used the majority of their bailout funds for day-to-day expenses such as payroll costs and payments to suppliers, a government watchdog has found.
/ Source: The Associated Press

General Motors and Chrysler have used the majority of their bailout funds for day-to-day expenses such as payroll costs and payments to suppliers, a government watchdog has found.

A report released Thursday by the special inspector general for the $700 billion financial bailout fund said GM used 65 percent, or about $32 billion, for operating expenses such as payments to employees and suppliers. GM has received $49.5 billion from the government.

Chrysler has used 84 percent of its funds on day-to-day expenses. Chrysler has received $12.5 billion in total.

The report says GM has $13.7 billion left in bailout funds. GM's Chairman and CEO Ed Whitacre Jr. has said GM may repay its government loans in one lump sum instead of quarterly installments.