With the auto rescue coming to an end and unemployment reaching a record high, auto manufacturers are planning to invest in their factories and equipment to get the job done, according to a report from the Associated Press.
The bailout program paid automakers about $2.5 billion last month in the form of cash to help cover the cost of buying new vehicles and other equipment.
That’s up from $1.7 billion a month in December, according a December 2014 report by the Automotive Research Council.
The cost of the bailout was less than the $3.5 trillion in government spending that has already been spent in the last eight years, the report said.
The auto industry was expected to spend at least $20.3 billion on buying and replacing its vehicles, which is about 40% of the total, according the AP.
Auto sales are down more than 60% from the peak in 2007, according an AP poll.
But the costliest project to date, the $20-billion cost of repairing and rebuilding the U.S. economy from the crash of 2008-2009, was a $3 billion effort by auto maker General Motors Corp. GM is scheduled to spend $5 billion on a new engine for its Cadillac Escalade, which was produced by a bankrupt Japanese auto maker.
In February, the U:Auto Manufacturers Association estimated the auto industry could spend $7 billion on rebuilding from the economic crisis to keep up with demand.